Cleo Capital, the venture fund known for backing companies like AI firm Groq, fintech platform Ellevest, and fashion brand Hill House, has announced the launch of a new accelerator program focused on cybersecurity.
The accelerator is aimed at pre-seed and seed-stage companies worldwide. This 12-week, remote program offers a standard investment of $250,000 for a 7% equity stake, with up to 10 startups selected for each cohort.
Sarah Kunst, the founder and managing partner of Cleo Capital, was inspired to create the accelerator after witnessing the surge in cyber fraud within industries she’s involved with, such as fintech and crypto. Additionally, her advisory role at Bumble, a popular dating app, further deepened her concern about the rising risks in digital spaces.
Kunst shared that personal stories, including her own father and elderly grandmother experiencing cyber threats and fraud in small-town America, further fueled her motivation. “It’s clear—cybercrime is out of control,” she said.
The financial toll of cyber threats continues to grow, particularly with the increasing sophistication of AI-driven attacks. In 2023, the FBI reported that Americans lost over $12.5 billion to cybercrime, which includes scams like romance fraud and fake legal fees. This is more than double the amount lost during 2020 and 2021, highlighting the escalating threat.
Despite the challenges, the cybersecurity sector is experiencing a boom in innovation and investment. Many cybersecurity companies have achieved “unicorn” status in recent years, including Chainguard, Huntress, and Bugcrowd.
“Cybersecurity investors told me that only enterprise startups could thrive in this space, but I disagree,” Kunst said. “Ninety percent of Americans face cybersecurity challenges, often in their personal lives or on consumer devices. This is a huge opportunity, and we can’t afford to ignore it.”
Currently, Kunst is seeking startups in areas such as consumer-facing products, defense technologies, and developer tools and infrastructure. One of her primary concerns is how easy it is for scammers to impersonate others online, whether on social media or dating apps. “Anyone can pretend to be anyone,” she said.
Kunst aims to tackle the “crushing burden” of cybersecurity threats that are making the internet feel increasingly unsafe. She envisions a future where online authentication, scam detection tools, and products that defend against government-backed cyberattacks are common. Importantly, these solutions must balance security with user privacy.
Applications for the accelerator are open until January 20, with the program set to begin on February 24.
“This is just the beginning of a massive industry,” Kunst said. “We need an internet we can trust, and Cleo is committed to making that a reality.”
Cleo Capital Launches Cybersecurity Accelerator to Combat the Rising Threat of Online Fraud
By Dominic-Madori Davis | November 26, 2024
Cleo Capital, the venture fund known for backing companies like AI firm Groq, fintech platform Ellevest, and fashion brand Hill House, has announced the launch of a new accelerator program focused on cybersecurity.
The accelerator is aimed at pre-seed and seed-stage companies worldwide. This 12-week, remote program offers a standard investment of $250,000 for a 7% equity stake, with up to 10 startups selected for each cohort.
Sarah Kunst, the founder and managing partner of Cleo Capital, was inspired to create the accelerator after witnessing the surge in cyber fraud within industries she’s involved with, such as fintech and crypto. Additionally, her advisory role at Bumble, a popular dating app, further deepened her concern about the rising risks in digital spaces.
Kunst shared that personal stories, including her own father and elderly grandmother experiencing cyber threats and fraud in small-town America, further fueled her motivation. “It’s clear—cybercrime is out of control,” she said.
The financial toll of cyber threats continues to grow, particularly with the increasing sophistication of AI-driven attacks. In 2023, the FBI reported that Americans lost over $12.5 billion to cybercrime, which includes scams like romance fraud and fake legal fees. This is more than double the amount lost during 2020 and 2021, highlighting the escalating threat.
Despite the challenges, the cybersecurity sector is experiencing a boom in innovation and investment. Many cybersecurity companies have achieved “unicorn” status in recent years, including Chainguard, Huntress, and Bugcrowd.
“Cybersecurity investors told me that only enterprise startups could thrive in this space, but I disagree,” Kunst said. “Ninety percent of Americans face cybersecurity challenges, often in their personal lives or on consumer devices. This is a huge opportunity, and we can’t afford to ignore it.”
Currently, Kunst is seeking startups in areas such as consumer-facing products, defense technologies, and developer tools and infrastructure. One of her primary concerns is how easy it is for scammers to impersonate others online, whether on social media or dating apps. “Anyone can pretend to be anyone,” she said.
Kunst aims to tackle the “crushing burden” of cybersecurity threats that are making the internet feel increasingly unsafe. She envisions a future where online authentication, scam detection tools, and products that defend against government-backed cyberattacks are common. Importantly, these solutions must balance security with user privacy.
Applications for the accelerator are open until January 20, with the program set to begin on February 24.
“This is just the beginning of a massive industry,” Kunst said. “We need an internet we can trust, and Cleo is committed to making that a reality.”