CipherCloud rakes in $50M to encrypt corporate data in the cloud

CipherCloud has landed a $50 million series B funding round, bringing total investment in the security startup to $80.1 million. The San Jose-based company specializes in securing an organization’s cloud environment through encryption and monitoring services.

Customers can use CipherCloud’s security system to track whoever is accessing sensitive information stored in various cloud services like and [company]Box[/company], explained Pravin Kothari, founder and CEO, [company]CipherCloud[/company]. If someone is snooping around [company]Salesforce[/company] who shouldn’t be, the security system can detect that something looks fishy and will alert the company.

CipherCloud can also encrypt corporate data in real time so that the information remains safe from prying eyes as it’s delivered to the cloud.

“Once it goes out to the cloud, it is gibberish,” said Kothari.

CipherCloud CEO Pravin Kothari

CipherCloud CEO Pravin Kothari

Users can even fine tune what part of the document they want encrypted so they can potentially scrub sales leads or similar files to make sure sensitive information, like social security or credit card numbers, are redacted, Kothari explained. Once the data reaches its destination in the cloud, intended recipients should be able to see the full documents, he said.

CipherCloud’s security software and encryption gateway can be installed in the cloud or on premise, Kothari said.

Kothari’s no stranger to security, by the way. He was co-founder and senior vice president of engineering for the security company ArcSight, which [company]HP[/company] gobbled up for $1.5 billion in 2010.

The company, formed in 2010, now counts 500 employees and claims five of the top ten U.S. banks, healthcare companies and some government agencies as customers.

Transamerica Ventures drove the funding round along with Delta Partners, Andreessen Horowitz and Deutsche Telekom’s venture capital arm T-Venture.