Serial entrepreneur Rishi Bhargava on building another cybersecurity company
Apr 10, 2023
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Rishi Bhargava, a serial entrepreneur and co-founder of Descope, dives into the exciting world of cybersecurity and passwordless authentication. He discusses the $53 million seed funding that Descope secured and sheds light on the complexities of customer identity management. Rishi shares insights about emerging identity solutions like biometrics, the security challenges faced by startups, and the strategic importance of building trust in a competitive market. He also touches on the unique advantages of Israeli tech talent in cybersecurity.
DeScope aims to revolutionize app authentication by implementing a passwordless system that enhances user convenience and security.
The startup differentiates itself in the complex identity landscape by focusing on Customer Identity and Access Management rather than workforce identity.
Deep dives
Mission to Eliminate Passwords
DeScope aims to eliminate the reliance on passwords for application authentication, proposing a user-friendly alternative. The startup enables developers to implement passwordless authentication using various methods such as biometrics and one-time passwords (OTPs). This transformation stems from the belief that ease of adoption is crucial for the success of new technologies. By focusing on customer identity and access management, DeScope distinguishes itself from other identity management solutions that cater to workforce identity.
Navigating a Complex Identity Landscape
The identity landscape is intricate and often confusing, and DeScope operates within the Customer Identity and Access Management (CIAM) category. Unlike other identity management systems focused on workforce identity, CIAM concentrates on managing customer identification across both B2C and B2B applications. The founders recognized that the existing approaches, largely dependent on passwords, are problematic and sought to innovate beyond traditional methods. Understanding the challenge of competing with established players, they emphasize simplicity and ease of integration for developers.
Innovative Passwordless Solutions
DeScope's strategy revolves around making app authentication as simple as possible, promising minimal code requirements for integration. The founders believe that a passwordless approach can be achieved by utilizing biometric features and phone numbers for user verification. For example, once a user verifies their phone number through OTP, they can register their biometric identity and create an account without ever needing to set up a password. This streamlining of authentication processes aims to reduce the friction and security risks associated with traditional passwords.
Addressing Security Concerns
The startup prioritizes the reduction of potential attack surfaces by operating under a passwordless mindset. Rather than storing sensitive data like passwords, DeScope retains only essential information such as phone numbers while securing user tokens on their devices. They also emphasize the importance of layered defense measures, cybersecurity compliance, and maintaining transparency with users regarding security practices. By recruiting experienced security professionals from the outset, DeScope builds a foundation of trust and credibility in a competitive landscape filled with larger players.
Rishi Bhargava and the team of entrepreneurs behind Demisto’s $560 million exit are back at it with a new startup building technology in the customer identity market. The new company, called Descope, raised an abnormally large $53 million seed-stage funding round with ambitious plans to take on rivals big and small in the customer identity and authentication space.
On this episode of the podcast, Bhargava joins Ryan to talk about the VC funding landscape, the confusing 'identity' category, the responsibilities of vendors in the identity ecosystem, the emergence of Microsoft and Google as big security players, and some thoughts on the Israeli startup scene.