How online gamer Kevin Gosschalk made $173m stopping internet bad guys
Nov 19, 2023
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Kevin Gosschalk, co-founder of Arkose Labs, discusses how they outperformed Google's free service, attracting major companies. They explore Kevin's background in gaming and technology, collaboration with Elon Musk, productivity hacks, and cybersecurity trends.
Arco's Labs offers solutions to protect user logins and counter cyber criminals, increasing cost and complexity for attackers.
The emergence of cybercrime as a service has led Arco's Labs to continuously refine their software and provide robust solutions to protect their clients.
Deep dives
Arco's Labs: Protecting User Logins and Thwarting Cyber Criminals
Arco's Labs, co-founded by Kevin Gosschalk in 2016, offers a solution to protect user logins and counter cyber criminals. The company focuses on preventing attacks primarily in the field of user authentication. Arco's Labs increases the cost and complexity for attackers by introducing friction and making the requests more expensive to carry out. They also decrease the value of what attackers are after and implement a risk-based approach to reward where lower-risk users receive fewer incentives. Additionally, they provide threat intelligence to help businesses identify attackers and discourage criminal behavior. Arco's Labs has successfully attracted major clients, including Twitter, and continues to address the evolving trends in cybercrime, such as the rise of cybercrime as a service.
The Journey of Arco's Labs
Kevin Gosschalk, alongside co-founder Matthew Ford, started Arco's Labs in late 2015 or 2016. Initial challenges revolved around competing with Google, which offered similar services for free. However, a breakthrough occurred when a Canadian company, Kick, approached Arco's Labs seeking an alternative to the Google CAPTCHA. This led to the first paid client, demonstrating the market demand for their software. Subsequently, Arco's Labs secured seed funding of $150,000, which allowed them to scale up operations and refine their business model further. The company continued to grow, attracting prominent customers in the social media and tech industries, leveraging its stronghold in the San Francisco Bay Area.
Cybersecurity Trends and Challenges
One of the significant trends observed in cybersecurity is the emergence of cybercrime as a service, where malicious software and tools are provided by companies for attackers to carry out sophisticated attacks. This shift has made attacks more sophisticated and has lowered the barrier to entry for cybercriminals. Arco's Labs has adapted to these challenges by continuously refining their software and providing robust solutions to protect their clients from these evolving threats. Additionally, they advocate for individual security practices such as using password managers, enabling multi-factor authentication, and avoiding password reuse to enhance personal security.
The Importance of Passion and Finding Your Niche
Kevin Gosschalk emphasizes the significance of finding something one is passionate about. This passion drives productivity and commitment, leading to a strong dedication to the business. It also helps attract and inspire employees and clients. Arco's Labs' success stems from their passion for solving cybersecurity challenges and protecting businesses from cyber threats. Kevin's journey emphasizes the importance of discovering and pursuing one's true passion, which can ultimately lead to tremendous success.
This week on How I Made It, Julie-anne Sprague chats to Young Rich Lister Kevin Gosschalk, the co-founder Arkose Labs on the challenges of going head to head with Google in offering companies solutions to thwart cyber criminals.
