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CAPITAL ONE AND USAA INVEST IN SECURITY FIRM TIDAL CYBER

By PYMNTS  |  October 28, 2024
 | 



Security firm Tidal Cyber says it has landed investments from Capital
One and USAA.

The investments will help enhance the company’s enterprise edition platform and
fuel the adoption of Tidal’s “threat-informed defense” offering, according to a
Monday (Oct. 28) news release.

In addition the investments will help accelerate Tidal’s go-to-market activities
and product development, including expanding sales and marketing activities and
enhancements to its Community Edition, which supports more than 3,000 security
professionals around the world, per the release.

“We have witnessed Tidal Cyber drive the adoption of Threat-Informed Defense
since the very early days of the company and have been impressed by the
company’s rapid growth. With that up-front perspective, it was a natural
decision to invest,” Nathan McKinley, USAA vice president and head of corporate
development, said in the release.

The investment comes as cyberattacks continue to grow in cost amid increases in
digitization and artificial intelligence (AI), as noted here earlier this month.

“If cybercrime damage were a state, it would be the world’s third-largest
economy,” Bank of America wrote in a recent investors note.

The financial institution added that 60% of organizations were impacted by
ransomware in 2023, the average payment jumping fivefold compared to the
previous year. Meanwhile the average cost of a data breach has climbed by 10%
this year.

Meanwhile, PYMNTS wrote last month about the use of AI chatbots by criminals to
create sophisticated malware.

As that report noted, HP Wolf Security researchers have found one of the first
known instances where attackers employed generative AI to write malicious code
for distributing a remote access Trojan. This marks a shift in cybersecurity,
democratizing the ability to develop complex malware and potentially threatening
a surge in cybercrime.

“If your company is like many others, hackers have infiltrated a tool your
software development teams are using to write code. Not a comfortable place to
be,” Lou Steinberg, founder and managing partner at CTM Insights and former CTO
of TD Ameritrade, told PYMNTS.

Developers often use AI chatbots like ChatGPT for code generation and
translation between programming languages, though this reliance comes with risk,
as these AI tools learn from a massive amount of open-source software, which
could contain design errors, bugs, or even deliberately inserted malware.

“Letting open-source train your AI tools is like letting a bank-robbing getaway
driver teach high school driver’s ed. It has a built-in bias to teach something
bad,” Steinberg warned.

With more than a billion open-source contributions made a year, the threat of
malicious code worming its way into AI training data is significant.




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HOSTAWAY SECURES $365 MILLION TO EXPAND SHORT-TERM RENTAL PLATFORM

By PYMNTS  |  December 17, 2024
 | 



Hostaway has secured a $365 million strategic growth investment to expand its
vacation rental software and management system designed for short-term rental
property owners and managers.

The company will use the new funding to support its international expansion,
product development and artificial intelligence (AI) initiatives, Hostaway said
in a Tuesday (Dec. 17) press release.

“This transaction is a critical milestone that will enable Hostaway to expand
our commitment to delivering continued product innovation and invest further in
AI-driven tools as we support our customers in growing and managing their
businesses,” Hostaway CEO and Co-founder Marcus Räder said in the release.
“Also, we are excited to leverage this investment to further expand our
footprint across the world, especially in key markets like France, Spain and
Italy.”

Hostaway’s platform currently supports customers with properties in more than 90
countries and offers an integrated marketplace that provides access to vacation
rental software and tools from more than 200 partners, according to the release.

The platform provides a property management system and two-way API connection to
major online travel agencies, the release said. It also includes tools for
analytics and reporting, communication, marketing and operations.

The platform’s current AI tools provide suggested message responses,
SEO-optimized listing descriptions, and other ways to enhance listings and guest
communications, per the release.

Recent additions to Hostaway’s offerings include Hostaway Dynamic Pricing,
Hostaway Capital, Hostaway Insurance and Hostaway Smart Locks, according to the
release.

Raph Osnoss, managing director at General Atlantic, which led the strategic
growth investment, said in the release that Hostaway has demonstrated “high
velocity of innovation and dedication to supporting its customers.”

“Hostaway has emerged as a category leader with a differentiated product
addressing the distinct needs of short-term rental property managers, a dynamic
and growing industry,” Osnoss said.

This announcement came about 18 months after Hostaway raised $175 million,
saying it planned to use the new funding to accelerate its expansion and
continue developing its services.

Another company offering a property management software platform for the
short-term rental and hospitality market, Guesty, raised $130 million in a
Series F funding round in April.

Guesty said at the time that the growth in demand for short-term rentals had
been outpacing that for hotels since 2022.

Vacation rental booking platform Airbnb said in October that it launched a
service called Co-Host Network that lets property owners find help with things
like setting up listings, managing bookings and communicating with guests
directly from the Airbnb app.



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