Docker partners with AWS to improve container workflows

Docker and AWS today announced a new collaboration that introduces a deep integration between Docker’s Compose and Desktop developer tools and AWS’s Elastic Container Service (ECS) and ECS on AWS Fargate. Previously, the two companies note, the workflow to take Compose files and run them on ECS was often challenging for developers. Now, the two companies simplified this process to make switching between running containers locally and on ECS far easier.

docker/AWS architecture overview“With a large number of containers being built using Docker, we’re very excited to work with Docker to simplify the developer’s experience of building and deploying containerized applications to AWS,” said Deepak Singh, the VP for compute services at AWS. “Now customers can easily deploy their containerized applications from their local Docker environment straight to Amazon ECS. This accelerated path to modern application development and deployment allows customers to focus more effort on the unique value of their applications, and less time on figuring out how to deploy to the cloud.”

In a bit of a surprise move, Docker last year sold off its enterprise business to Mirantis to solely focus on cloud-native developer experiences.

“In November, we separated the enterprise business, which was very much focused on operations, CXOs and a direct sales model, and we sold that business to Mirantis,” Docker CEO Scott Johnston told TechCrunch’s Ron Miller earlier this year. “At that point, we decided to focus the remaining business back on developers, which was really Docker’s purpose back in 2013 and 2014.”

Today’s move is an example of this new focus, given that the workflow issues this partnership addresses had been around for quite a while already.

It’s worth noting that Docker also recently engaged in a strategic partnership with Microsoft to integrate the Docker developer experience with Azure’s Container Instances.

“EvilQuest” Rolls Ransomware, Spyware & Data Theft Into One

There has, unsurprisingly, been a great deal of interest in the news that a new macOS threat with ransomware capabilities is on the loose. First brought to the macOS community’s attention by malware researcher Dinesh Devadoss, this threat has been receiving intense scrutiny from security researchers, with some excellent work done by researchers Scott Knight, Patrick Wardle and our own SentinelLabs team. As it turns out, this threat is much more than just a novel piece of ransomware, is under active development, and is one of the more complex threats to be seen so far targeting the Mac platform. In this post, we’ll cover what is known to date and bring you up-to-speed on the latest iterations.

The Many Names of EvilQuest, ThiefQuest, and MacRansom.K

The threat was initially labelled “EvilQuest” by researchers at Malwarebytes, who then re-named it a few days later as “ThiefQuest”. Aside from the two names they suggested, many engines on VT also flag it as MacRansom.K.

This has led to some confusion, unfortunately, both about the threat and its capabilities.

While Mac.Ransom.K does conform to a recognized convention (platform/type/variant), it’s problematic because the threat is not only, and perhaps not even primarily, a ransomware threat. As malware authors on all platforms are increasingly reusing code to provide multiple features, classifying by threat type may not be all that helpful.

A good malware naming convention would ideally group malware samples by common characteristics. On that score, the most common characteristic in the samples seen so far is the __cstring literal “toidievitceffe”, which along with other strings like “rennur.c” (c.runner) is clearly the reverse of otherwise recognizable English language words:

echo 'toidievitceffe' | rev
effectiveidiot

Moreover, we see the developers clearly used “toidievitceffe” as the name of their Xcode project.

Other interesting reversed strings here include “naughtycuckoo”, “keylogger” and “filewatcher”, which as we will explain further below may give a better insight into the threat actor’s true motivation.

In some samples, the reversed “effectiveidiot” string occurs over 60 times, which might suggest the malware authors themselves were rather fond of the idea that security researchers would hit on this for a name. Here we use the excellent floss tool to extract strings as an alternative to the native strings utility:

Moreover, string obfuscation in recent samples shows that the developers deliberately planted the user name “drozdovsky” and the build name ‘toidievitceffe”, no doubt in an attempt to misdirect attribution.

While it could be argued that malware naming conventions aren’t vitally important, they are nevertheless helpful, particularly for researchers and others tracking evolving public discussion and research. Despite there being a strong argument for calling this new threat “OSX.EffectiveIdiot”, we suspect that this naming muddle is probably a bed that cannot be unmade. “EvilQuest/ThiefQuest” will likely stick simply because of its widespread initial use in the media, and who doesn’t like a thief or a good bit of evil in a headline anyway?

Broken Crypto: Ransomware Capabilities, Just for Show?

As the initial excitement around “EvilQuest/ThiefQuest” stemmed from it being a novel macOS ransomware threat, let’s look at that first. Ransomware has been pillaging the Windows world of late, but this is only the third known ‘in the wild’ ransomware targeting macOS. That in itself is odd, since Macs are now widely used in enterprise environments, particularly by C-Suite staff and by developers, both juicy targets for threat actors. Thus, appearance of what looks like a Mac ransomware is both novel and, in a sense, not unexpected.

However, as ransomware goes, “EvilQuest/ThiefQuest” fails pretty much on any measure of success. First and foremost, if you’re going to extort money by encrypting people’s files, you are going to want to make your encryption unbreakable. Crypto is hard, and about the one thing everyone who is smart enough to do it will tell you is this: don’t try and roll your own, because you will inevitably do it wrong. Successful ransomware operators are smart enough to follow that advice and will use established encryption algorithms, typically with at least some component being asymmetric; in other words, requiring access to a private key held only by the attacker.

Our “EffectiveIdiot” developers chose to forego that option, and opted for a symmetric key encryption, meaning the same key that encrypts a file is used to decrypt it. Even better, as our research lead at SentinelLabs Jason Reaves discovered:

“…the clear text key used for encoding the file encryption key ends up being appended to the encoded file encryption key. Taking a look at a completely encrypted file shows that a block of data has been appended to it.”

This allowed Jason and the SentinelLabs team to create a public decryptor that can be used by anyone unfortunate enough to have been a victim of this malware. This video shows how to use it:

EvilQuest Ransomware Decryptor in Action

Aside from making the crypto reasonably bulletproof, a ransomware operator will want a good reward for their effort. Perhaps the first hint of something amiss with the “EvilQuest/ThiefQuest” malware was the ransom note itself.

Two things stand out: the incredibly low amount of ransom, and the fact that there is no email or other means of contact for the victim to communicate with the attacker. Again, using the model from the Windows world, ransomware operators have become very slick and efficient at pushing the right buttons to get people to pay. These include a mixture of threats and reassurance, and even levels of customer support. Not so here. The ransom note amounts to: ‘send us your money; we’ll be in touch”, only there’s no way for you to tell the threat actors that you paid; no request for your contact address; and no request for a sample encrypted file or any other identifying factor. The classic brush-off “Don’t call us, we’ll call you” springs to mind here.

Unsurprisingly, the threat actors have not been amassing a fortune. To date, the one known BitCoin address common to all the samples has had exactly zero transactions.

Finally, on the ransomware component, SentinelLabs also noted that the decryption routine, uncarve_target, has no callers in the code, suggesting either that the functionality is incomplete or that the authors decided that decryption wasn’t something they ever intended to offer (in which case, we could speculate that presence of the decryption routine in the code is an artifact of earlier testing).

Who Shares? A Data Thief in the Shared Folder

As details such as the above have emerged, attention has turned to the malware’s other capabilities, in particular the fact that it downloads and executes three Python scripts from the /Users/Shared folder. These scripts are intended to search for and exfiltrate files with particular extensions:

The scripts vary in name across samples, but initially the following short names were used:

/Users/Shared/.dr
/Users/Shared/.p
/Users/Shared/.gp

Moreover, there’s more to the malware’s data stealing capabilities locked inside the invisible Mach-O binaries deposited in the user’s Library folder.

Note the following encrypted strings:

We can use a tool developed by fellow macOS researcher Scott Knight to decrypt these, which reveals the following in plain text:

bytearray(b'*id_rsa*/ix00')
bytearray(b'*.pem/ix00')
bytearray(b'*.ppk/ix00')
bytearray(b'known_hosts/ix00')
bytearray(b'*.ca-bundle/ix00')

It would appear that the malware is seeking SSH keys and trusted certificates in order to facilitate the ability to log in remotely and manipulate web browsers to trust sites without throwing security warnings.

As other researchers have noted, there is also ample evidence of keylogging functionality through the existence of API calls targeting low-level hardware events like key presses. Note the first half of the function name, reversed, and with a possible typo for “file” as “klgr_flie”:

It’s also worth noting that unlike wiper malware and other aggressive ransomware variants on other platforms, the ransomware component doesn’t really interfere with the user’s ongoing use of the device. A simple osascript-generated alert dialog informs the user of the situation:

Pressing “OK” dismisses the dialog and allows the user to continue using the machine, which is indeed handy for the spyware components!

New Variant Calls Out macOS Researcher

A good deal of the early technical details were published by macOS researcher Patrick Wardle, and rather than repeat all the details here we refer you to his excellent posts here on the early “AppQuest” sample first spotted last week. Wardle suggests the malware has viral capabilities and there are also other suggestions that the malware attempts to infect existing executables in the User’s home folder, although that behaviour was not seen in our tests.

Since the earlier research, new variants have appeared with updated hardcoded strings and paths. In particular, there is a nod to Wardle’s research in the method “react_ping”, which contains the encrypted string “Hello Patrick”.

The recent version also updates the hardcoded C2 address from the earlier 167.71.237.219 to 159.65.147.28 and includes Wardle’s “Knock Knock” reporting tool in its list of software to check for:

Other new changes include using “abtpd” for the executable label. There are suggestions in the code that “.ab**d” may be a variant across different installs, but we have not confirmed that at the time of writing. Instead of using the folder name “AppQuest”, the persistence agent now points to an attacker-created folder named “PrivateSync”.

Similarly, in the early samples, an invisible, plain text file containing a 43-byte string was dropped at /var/root/ and /Users/User1/ with the name “.ncspot”. In the latest sample we tested, the spot file dropped in the same locations but now with the name “.aespot”.

Based on the rapid iteration so far, we would expect all these details to change within days, if not hours.

Protecting Against EvilQuest/ThiefQuest macOS Malware

The SentinelOne platform effectively protects your enterprise against EvilQuest/ThiefQuest.

How SentinelOne Protects Against the EvilQuest macOS Ransomware

For those not protected by SentinelOne, if you have fallen victim to this malware we recommend a complete restore from a known-good backup. Also, due to the keylogging and other spyware functions, it would be advisable to change any passwords and reset SSH and certificate trust credentials.

If you have files encrypted by EvilQuest, our public decryptor tool is available from here.

Conclusion

Call it “EffectiveIdiot”, “ThiefQuest” or “EvilQuest”, the appearance of this combination ransomware-data thief-spyware is a significant development. Not only did it catch a lot of security tools unaware, it may have also wrong-footed victims into continuing to use their infected machines and leak vital data while they sought a solution to the apparent problem of encrypted files. As ever, we urge macOS users to heed the warning that malware is no longer the sole preserve of Windows environments and to ensure they have adequate security.

Sample Hashes

06974e23a3bf303f75c754156f36f57b960f0df79a38407dfdef9a1c55bf8bff Mach-O
d18daea336889f5d7c8bd16a4d6358ddb315766fa21751db7d41f0839081aee2 Mach-O
c5a77de3f55cacc3dc412e2325637ca7a2c36b1f4d75324be8833465fd1383d3 Mach-O

Indicators of Compromise

/var/root/.aespot
~/.aespot
~/Library/LaunchAgents/com.apple.abtpd.plist
~/Library/PrivateSync/com.abtpd.questd
/Library/LaunchDaemons/com.apple.abtpd.plist
/Library/PrivateSync/com.abtpd.questd


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DocuSign acquires Liveoak Technologies for $38M for online notarization

Even in the best of times, finding a notary can be a challenge. In the middle of a pandemic, it’s even more difficult. DocuSign announced it has acquired Liveoak Technologies today for approximately $38 million, giving the company an online notarization option.

At the same time, DocuSign announced a new product called DocuSign Notary, which should ease the notary requirement by allowing it to happen online along with the eSignature. As we get deeper into the pandemic, companies like DocuSign that allow workflows to happen completely digitally are in more demand than ever. This new product will be available for early access later in the summer.

The deal made sense given that the two companies had a partnership already. Liveoak brings together live video, collaboration tooling and identity verification that enables parties to get notarized approval as though you were sitting at the desk in front of the notary.

Typically, you might get a document that requires your signature. Without electronic signature, you would need to print it, sign the document, scan it and return it. If it requires a notary, you would need to sign it in the notary’s presence, which requires an in-person visit. All of this can be streamlined with an online workflow, which DocuSign is providing with this acquisition.

It’s like the perfect pandemic acquisition, making a manual process digital and saving people from having to make face-to-face transactions at a time when it can be dangerous.

Liveoak Technologies was founded in 2014 and is part of the Austin, Texas startup scene. The company raised $13.5 million during its life as a private company, according to Crunchbase.

This acquisition is part of a growing pandemic acquisition trend of sorts, where larger public enterprise companies are plucking early-stage startups, in some cases for relatively bargain prices. Among the recent acquisitions are Apple buying Fleetsmith and ServiceNow acquiring Sweagle last month.

SetSail raises raises $7M to change how sales teams are compensated

Most sales teams earn a commission after a sale closes, but nothing prior to that. Yet there are a variety of signals along the way that indicate the sales process is progressing, and SetSail, a startup from some former Google engineers, is using machine learning to figure out what those signals are, and how to compensate salespeople as they move along the path to a sale, not just after they close the deal.

Today, the startup announced a $7 million investment led by Wing Venture Capital with help from Operator Collective and Team8. Under the terms of the deal, Leyla Seka from Operator will be joining the board. Today’s investment brings the total raised to $11 million, according to the company.

CEO and co-founder Haggai Levi says his company is based on the idea that commission alone is not a good way to measure sales success, and that it is in fact a lagging indicator. “We came up with a different approach. We use machine learning to create progress-based incentives,” Levi explained.

To do that they rely on machine learning to discover the signals that are coming from the customer that indicate that the deal is moving forward, and using a points system, companies can begin compensating reps on hitting these milestones, even before the sale closes.

The seeds for the idea behind SetSail were planted years ago when the three founders were working at Google tinkering with ways to motivate sales reps beyond pure commission. From a behavioral perspective, Levi and his co-founders found that reps were taking fewer risks with a pure commission approach and they wanted to find a way to change that. The incremental compensation system achieves that.

“If I’m closing the deal, I’m getting my commission. If I’m not closing the deal, I’m getting nothing. That means from a behavioral point of view, I would take the shortest path to win a deal, and I would take the minimum risk possible. So if there’s a competitive situation I will try to avoid that,” he said.

They look at things like appointments, emails and call transcripts. The signals will vary by customer. One may find an appointment with CIO is a good signal a deal is on the right trajectory, but to avoid having reps gaming the system by filling the CRM with the kinds of positive signals the company is looking for, they only rely on objective data, rather than any kind of self-reporting information from reps themselves.

The team eventually built a system like this inside Google, and in 2018, left to build a solution for the rest of the world that does something similar.

As the company grows, Levi says he is building a diverse team, not only because it’s the right thing to do, but because it simply makes good business sense. “The reality is that we’re building a product for a diverse audience, and if we don’t have a diverse team we would never be able to build the right product,” he explained.

The company’s unique approach to sales compensation is resonating with customers like Dropbox, Lyft and Pendo, who are looking for new ways to motivate sales teams, especially during a pandemic when there may be a longer sales cycle. This kind of system provides a way to compensate sales teams more incrementally and reward positive approaches that have proven to result in sales.

Suse acquires Kubernetes management platform Rancher Labs

Suse, which describes itself as “the world’s largest independent open source company,” today announced that it has acquired Rancher Labs, a company that has long focused on making it easier for enterprises to make their container clusters.

The two companies did not disclose the price of the acquisition, but Rancher was well funded, with a total of $95 million in investments. It’s also worth mentioning that it has only been a few months since the company announced its $40 million Series D round led by Telstra Ventures. Other investors include the likes of Mayfield and Nexus Venture Partners, GRC SinoGreen and F&G Ventures.

Like similar companies, Rancher’s original focus was first on Docker infrastructure before it pivoted to putting its emphasis on Kubernetes, once that became the de facto standard for container orchestration. Unsurprisingly, this is also why Suse is now acquiring this company. After a number of ups and downs — and various ownership changes — Suse has now found its footing again and today’s acquisition shows that its aiming to capitalize on its current strengths.

Just last month, the company reported the annual contract value of its booking increased by 30% year over year and that it saw a 63% increase in customer deals worth more than $1 million in the last quarter, with its cloud revenue growing 70%. While it is still in the Linux distribution business that the company was founded on, today’s Suse is a very different company, offering various enterprise platforms (including its Cloud Foundry-based Cloud Application Platform), solutions and services. And while it already offered a Kubernetes-based container platform, Rancher’s expertise will only help it to build out this business.

“This is an incredible moment for our industry, as two open source leaders are joining forces. The merger of a leader in Enterprise Linux, Edge Computing and AI with a leader in Enterprise Kubernetes Management will disrupt the market to help customers accelerate their digital transformation journeys,” said Suse CEO Melissa Di Donato in today’s announcement. “Only the combination of SUSE and Rancher will have the depth of a globally supported and 100% true open source portfolio, including cloud native technologies, to help our customers seamlessly innovate across their business from the edge to the core to the cloud.”

The company describes today’s acquisition as the first step in its “inorganic growth strategy” and Di Donato notes that this acquisition will allow the company to “play an even more strategic role with cloud service providers, independent hardware vendors, systems integrators and value-added resellers who are eager to provide greater customer experiences.”

Google launches the Open Usage Commons, a new organization for managing open-source trademarks

Google, in collaboration with a number of academic leaders and its consulting partner SADA Systems, today announced the launch of the Open Usage Commons, a new organization that aims to help open-source projects manage their trademarks.

To be fair, at first glance, open-source trademarks may not sound like it would be a major problem (or even a really interesting topic), but there’s more here than meets the eye. As Google’s director of open source Chris DiBona told me, trademarks have increasingly become an issue for open-source projects, not necessarily because there have been legal issues around them, but because commercial entities that want to use the logo or name of an open-source project on their websites, for example, don’t have the reassurance that they are free to use those trademarks.

“One of the things that’s been rearing its ugly head over the last couple years has been trademarks,” he told me. “There’s not a lot of trademarks in open-source software in general, but particularly at Google, and frankly the higher tier, the more popular open-source projects, you see them more and more over the last five years. If you look at open-source licensing, they don’t treat trademarks at all the way they do copyright and patents, even Apache, which is my favorite license, they basically say, nope, not touching it, not our problem, you go talk.”

Traditionally, open-source licenses didn’t cover trademarks because there simply weren’t a lot of trademarks in the ecosystem to worry about. One of the exceptions here was Linux, a trademark that is now managed by the Linux Mark Institute on behalf of Linus Torvalds.

With that, commercial companies aren’t sure how to handle this situation and developers also don’t know how to respond to these companies when they ask them questions about their trademarks.

“What we wanted to do is give guidance around how you can share trademarks in the same way that you would share patents and copyright in an open-source license […],” DiBona explained. “And the idea is to basically provide that guidance, you know, provide that trademarks file, if you will, that you include in your source code.”

Google itself is putting three of its own open-source trademarks into this new organization: the Angular web application framework for mobile, the Gerrit code review tool and the Istio service mesh. “All three of them are kind of perfect for this sort of experiment because they’re under active development at Google, they have a trademark associated with them, they have logos and, in some cases, a mascot.”

One of those mascots is Diffi, the Kung Fu Code Review Cuckoo, because, as DiBona noted, “we were trying to come up with literally the worst mascot we could possibly come up with.” It’s now up to the Open Usage Commons to manage that trademark.

DiBona also noted that all three projects have third parties shipping products based on these projects (think Gerrit as a service).

Another thing DiBona stressed is that this is an independent organization. Besides himself, Jen Phillips, a senior engineering manager for open source at Google is also on the board. But the team also brought in SADA’s CTO Miles Ward (who was previously at Google); Allison Randal, the architect of the Parrot virtual machine and member of the board of directors of the Perl Foundation and OpenStack Foundation, among others; Charles Lee Isbell Jr., the dean of the Georgia Institute of Technology College of Computing, and Cliff Lampe, a professor at the School of Information at the University of Michigan and a “rising star,” as DiBona pointed out.

“These are people who really have the best interests of computer science at heart, which is why we’re doing this,” DiBona noted. “Because the thing about open source — people talk about it all the time in the context of business and all the rest. The reason I got into it is because through open source we could work with other people in this sort of fertile middle space and sort of know what the deal was.”

Update: even though Google argues that the Open Usage Commons are complementary to other open source organizations, the Cloud Native Computing Foundation (CNCF) released the following statement by Chris Aniszczyk, the CNCF’s CTO: “Our community members are perplexed that Google has chosen to not contribute the Istio project to the Cloud Native Computing Foundation (CNCF), but we are happy to help guide them to resubmit their old project proposal from 2017 at any time. In the end, our community remains focused on building and supporting our service mesh projects like Envoy, linkerd and interoperability efforts like the Service Mesh Interface (SMI). The CNCF will continue to be the center of gravity of cloud native and service mesh collaboration and innovation.”

 

Slack snags corporate directory startup Rimeto to up its people search game

For the second time in less than 24 hours, an enterprise company bought an early-stage startup. Yesterday afternoon DocuSign acquired Liveoak, and this morning Slack announced it was buying corporate directory startup Rimeto, which should help employees find people inside the organization who match a specific set of criteria from inside Slack.

The companies did not share the purchase price.

Rimeto helps companies build directories to find employees beyond using tools like Microsoft Active Directory, homegrown tools or your corporate email program. When we covered the company’s $10 million Series A last year, we described what it brings to directories this way:

Rimeto has developed a richer directory by sitting between various corporate systems like HR, CRM and other tools that contain additional details about the employee. It of course includes a name, title, email and phone like the basic corporate system, but it goes beyond that to find areas of expertise, projects the person is working on and other details that can help you find the right person when you’re searching the directory.

In the build versus buy equation that companies balance all the time, it looks like Slack weighed the pros and cons and decided to buy. You could see how a tool like this would be useful to Slack as people try to build teams of employees, especially in a world where so many are working from home.

While the current Slack people search tool lets you search by name, role or team, Rimeto should give users a much more robust way of searching for employees across the company. You can search for the right person to help you with a particular problem and get much more granular with your search requirements than the current tool allows.

Image Credit: Rimeto

At the time of its funding announcement, the company, which was founded in 2016 by three former Facebook employees, told TechCrunch it had bootstrapped for the first three years before taking the $10 million investment last year. It also reported it was cash-flow positive at the time, which is pretty unusual for an early-stage enterprise SaaS company.

In a company blog post announcing the deal, as is typical in these deals, the founders saw being part of a larger organization as a way to grow more quickly than they could have alone. “Joining Slack is a special opportunity to accelerate Rimeto’s mission and impact with greater reach, expanded resources, and the support of Slack’s impressive global team,” the founders wrote in the post.

The acquisition is part of a continuing trend around enterprise companies buying early-stage startups to fill in holes in their product road maps.

PQShield raises $7M for quantum-ready cryptographic security solutions

A deep tech startup building cryptographic solutions to secure hardware, software, and communications systems for a future when quantum computers may render many current cybersecurity approaches useless is today emerging out of stealth mode with $7 million in funding and a mission to make cryptographic security something that cannot be hackable, even with the most sophisticated systems, by building systems today that will continue to be usable in a post-quantum future.

PQShield (PQ being short for “post-quantum”), a spin out from Oxford University, is being backed in a seed round led by Kindred Capital, with participation also Crane Venture Partners, Oxford Sciences Innovation and various angel investors, including Andre Crawford-Brunt, Deutsche Bank’s former global head of equities.

PQShield was founded in 2018, and its time in stealth has not been in vain.

The startup claims to have the UK’s highest concentration of cryptography PhDs outside academia and classified agencies, and it is one of the biggest contributors to the NIST cybersecurity framework (alongside academic institutions and huge tech companies), which is working on creating new cryptographic standards, which take into account the fact that quantum computing will likely make quick work of breaking down the standards that are currently in place.

“The scale is massive,” Dr Ali El Kaafarani, a research fellow at Oxford’s Mathematical Institute and former engineer at Hewlett-Packard Labs, who is the founder and CEO of PQShield said of that project. “For the first time we are changing the whole of public key infrastructure.”

And according to El Kaafarani, the startup has customers — companies that build hardware and software services, or run communications systems that deal with sensitive information and run the biggest risks from being hacked.

They include entities in the financial and government sectors that it’s not naming, as well as its first OEM customer, Bosch. El Kaafarani said in an interview that it is also in talks with at least one major communications and messaging provider exploring more security for end-to-end encryption on messaging networks. Other target applications could include keyless cars, connected IoT devices, and cloud services.

The gap in the market the PQShield is aiming to address is the fact that while there are already a number of companies exploring the cutting edge of cryptographic security in the market — they include large tech companies like Amazon and MicrosoftHub Security, Duality, another startup out of the UK focused on post-quantum cryptography called Post Quantum and a number of others — the concern is that quantum computing will be utilised to crack even the most sophisticated cryptography such as the RSA and Elliptic Curve cryptographic standards.

This has not been much of a threat so far since quantum computers are still not widely available and used, but there have been a number of signs of a breakthrough on the horizon.

El Kaafarani says that PQShield is the first startup to approach that predicament with a multi-pronged solution aimed at a variety of use cases, including solutions that encompass current cryptographic standards and provide a migration path the next generation of how they will look — meaning, they can be commercially deployed today, even without quantum computers being a commercial reality, but in preparation for that.

“Whatever we encrypt now can be harvested, and once we have a fully functioning quantum computer people can use that to get back to the data and the sensitive information,” he said.

For hardware applications, it’s designed a System on Chip (SoC) solution that will be licensed to hardware manufacturers (Bosch being the first OEM). For software applications, there is an SDK that secures messaging and is protected by “post-quantum algorithms” based on a secure, Signal-derived protocol.

Thinking about and building for the full spectrum of applications is central to PQShield’s approach, he added. “In security it’s important to understand the whole ecosystem since everything is about connected components.”

Some sectors in the tech world have been especially negatively impacted by the coronavirus and its consequences, a predicament that has been exacerbated by uncertainties over the future of the global economy.

I asked El Kaafarani if that translated to a particularly tricky time to raise money as a deep tech startup, given that deep tech companies so often work on long-term problems that may not have immediate commercial outcomes.

Interestingly, he said that wasn’t the case.

“We talked to VCs that were interested in deep tech to begin with, which made the discussion a lot easier,” he said. “And the fact is that we’re a security company, and that is one of the areas that is doing well. Everything has become digitised, and we have all become more heavily reliant on our digital connections. We ultimately help make the digital world more secure. There are people who understand that, and so it wasn’t too difficult to talk to them and understand the importance of this company.”

Indeed, Chrysanthos Chrysanthou, partner at Kindred Capital, echoed that sentiment:

“With some of the brightest minds in cryptography, mathematics and engineering, and boasting world-class software and hardware solutions, PQShield is uniquely positioned to lead the charge in protecting businesses from one of the most profound threats to their future,” he said. “We couldn’t be happier to support the team as it works to set a new standard for information security and defuse risks resulting from the rise of quantum.”

Tech shares set fresh records despite uncertain economy

Despite record-setting COVID-19 infections, American equities rose today. All major indices gained ground during regular trading, while tech stocks did even better.

The Nasdaq Composite set new 52-week and all-time highs, touching 10,462.0 points before closing at 10,433.65, up 2.21% on the day. Similarly, a basket of SaaS and cloud companies that has risen and fallen more sharply than even the tech-heavy Nasdaq closed this afternoon at 1,908.30 after touching 1,952.39 points. Both results were 52-week and all-time highs.

Such is the mood on Wall Street regarding the health of technology companies. It’s not hard to find bullish sentiment, jockeying to push tech shares higher. Some examples of today’s enthusiasm paint the picture:

  • The recent IPO for Lemonade is now worth $4.7 billion, according to Yahoo Finance. That price gives it a Q1-annualized revenue run rate multiple of around 45x. For a SaaS company, that would boggle the mind. As we’ve written, however, Lemonade has very un-SaaS-like gross margins, and has higher churn. The company’s stock rose around 17% today for no clear reason.
  • Tesla rose over 13% today to $1,371.58 per share, another huge day of gains for the company now worth in excess of $250 billion. Analysts expect the firm to report $4.83 billion in revenue in its most recent quarter, according to Yahoo Finance. That’s less than the company reported in its year-ago June quarter when it saw $6.35 billion in revenue. Since July 1, 2019, Tesla shares have appreciated in excess of 450%, despite the company prepping to report what the market anticipates will be revenue declines.
  • Amazon and Netflix also set new records today to toss a few more names into the mix.

You can’t swing your arms without running into a reason why it makes sense for SaaS stocks to be trading at record valuation multiples, or why one company or another is actually reasonably valued over a long-enough time horizon.

It’s worth noting that this putatively rational public investor thinking doesn’t fit at all with what the tech set used to pound into my head about the public markets, namely that they are infamously impatient and thus utter bilge for most long-term value creation. Going public was garbage, I was told; you have to report every three months and no one looks out a few years.

Now, I’m being told by roughly the same people that the market is doing the very thing that they said it didn’t do, namely price firms for future results instead of trailing outcomes. Fine by me either way, frankly, but I’d like to know which story is true.

Happily, we’re about to see if all this high-fiving and enthusiasm is real.

Earnings season beckons, and it should bring with it a dose or two of clarity. If the digital transformation has managed to accelerate sufficiently that most tech companies have managed to greatly boost their near-term value, hats off to the cohort and bully for the startups that must also be enjoying similar revenue upswells.

But that doesn’t have to happen. There are possible earnings result sets that can cause investors to dump tech shares, as Slack learned a month ago.

The background to all of this is that there are good reasons to have some doubts about the current health of the national economy. And, sure, most people are willing to allow that the stock market and the aggregate domestic economy are not perfectly linked — this is no less than partially true — but each day the stock market steps higher and COVID-19 surges again leading to re-closings around the nation makes you to wonder if this is all for real.

Earnings season is here soon. Let’s find out.

Nayya, bringing transparency to choosing and managing healthcare plans, raises $2.7 million

Entrepreneurs Roundtable Accelerator -backed Nayya is on a mission to simplify choosing and managing employee benefits through machine learning and data transparency.

The company has raised $2.7 million in seed funding led by Social Leverage, with participation from Guardian Strategic Ventures, Cameron Ventures, Soma Capital, as well as other strategic angels.

The process of choosing an employer-provided healthcare plan and understanding that plan can be tedious at best and incredibly confusing at worst. And that doesn’t even include all of the supplemental plans and benefits associated with these programs.

Co-founded by Sina Chehrazi and Akash Magoon, Nayya tries to solve this problem. When enrollment starts, employers send out an email that includes a link to Nayya’s Companion, the company’s flagship product.

Companion helps employees find the plan that is right for them. The software first asks a series of questions about lifestyle, location, etc. For example, Nayya co-founder and CEO Chehrazi explained that people who bike to work, as opposed to driving in a car, walking or taking public transportation, are 20 times more likely to get into an accident and need emergency services.

Companion asks questions in this vein, as well as questions around whether you take medication regularly or if you expect your healthcare costs to go up or down over the next year, without getting into the specifics of chronic ailments or diseases or particular issues.

Taking that data into account, Nayya then looks at the various plans provided by the employer to show you which one matches the user’s particular lifestyle and budget best.

Nayya doesn’t just pull information directly from the insurance company directory listings, as nearly 40% of those listings have at least one error or are out of date. It pulls from a broad variety of data sources, including the Centers for Medicare and Medicaid Services (CMS), to get the cleanest, most precise data around which doctors are in network and the usual costs associated with visiting those doctors.

Alongside Companion, Nayya also provides a product called “Edison,” which it has dubbed the Alexa for Helathcare. Users can ask Edison questions like “What is my deductible?” or “Is Dr. So-and-So in my network and what would it cost to go see her?”

The company helps individual users find the right provider for them with the ability to compare costs, location and other factors involved. Nayya even puts a badge on listings for providers where another employee at the company has gone and had a great experience, giving another layer of validation to that choice.

As the healthtech industry looks to provide easier-to-use healthcare and insurance, the idea of “personalization” has been left behind in many respects. Nayya focuses first and foremost on the end-user and aims to ensure that their own personal healthcare journey is as simple and straightforward as possible, believing that the other pieces of the puzzle will fall into place when the customer is taken care of.

Nayya plans on using the funding to expand the team across engineering, data science, product management and marketing, as well as doubling down on the amount of data the company is purchasing, ingesting and cleaning.

Alongside charging employers on a per seat, per month basis, Nayya is also looking to start going straight to insurance companies with its product.

“The greatest challenge is educating an entire ecosystem and convincing that ecosystem to believe that where the consumer wins, everyone wins,” said Chehrazi. “How to finance and understand your healthcare has never been more important than it is right now, and there is a huge need to provide that education in a data driven way to people. That’s where I want to spend the next I don’t know how many years of my life to drive that change.”

Nayya has five full-time employees currently and 80% of the team comes from racially diverse backgrounds.