0OVERVIEW
Ransomware is one of the biggest cyber threats globally - costing organizations billions of dollars.
This global problem has only gained momentum during the COVID pandemic. That’s why our Cybersecurity company, Kapalya, has developed innovative solutions for businesses to proactively prevent and eradicate ransomware.
With this Encryption Management Platform (EMP) - confidential files are always encrypted. Manage your own keys, encrypt, store and share sensitive data across endpoints, and live a safer digital life.
THE PROBLEM
Ransomware is one of the largest cyber security threats globally and must be prevented.
Cybersecurity Ventures expects global cybercrime costs to grow by 15% per year over the next five years, reaching $10.5 trillion annually by 2025, up from $3 trillion in 2015. In some cases, patients at hospitals have died because the hospital systems were breached with ransomware.
Along with this, Cybercrime costs typically include…
THE SOLUTION
Kapalya empowers businesses and their employees to securely store sensitive files at-rest and in-transit across multiple platforms through a user-friendly desktop and mobile application. This ubiquitous encryption solution protects all your corporate data by seamlessly encrypting files on:
The EMP is endpoint and cloud-agnostic, protecting users' files and folders inside and outside of organizational perimeters, on smartphones, tablets, laptops, desktops, cloud storage and local file servers.
With a built-in data discovery and classification tool, users can scan over 250 file types on laptops and desktops to find files that contain sensitive information. Once these sensitive data files are discovered, they can be encrypted with a simple click of the mouse.
Users are able to download an agent or mobile app, which performs all user and device authentication and manages all encryption keys in real-time, which are served from a cloud FIPS140-2 compliant key server.
That means these encryption keys are never stored on any endpoints/mobile/cloud storage or file servers - but are instead served when the client agent needs it and are subsequently destroyed after use. This approach significantly reduces the potential for the user to get compromised due to stolen keys and also ensures that if any device gets stolen or misplaced, the data on those devices will not be compromised.
Advanced Ransomware Countermeasures (ARC) Solution
Advanced Ransomware Countermeasure (ARC) inoculation follows a systematic approach, on endpoints, mobile, cloud, servers, databases, network storage, in real-time.
1. ARC detects ransomware payloads or packets at the network and device levels. If any are found, we immediately alert SIEM systems, security administrators, central command, and control computers.
2. ARC can stop zero-day ransomware attacks on the infected system and notify all other computers, servers, cloud storage, mobile device and network storage system. ARC will isolate the infected system and take it off-line to prevent further propagation and infection across the LAN/WAN/INTERNET.
3. After the infected system has been quarantined and isolated, then remediation
algorithms will start. Using ARC’s distributed AI algorithms, all ransomware processes
will be blocked and terminated from the system’s memory, infected files/folders
deleted and active memory purged to eradicate the ransomware/malware.
4. If the ransomware/malware is known, then ARC’s AI algorithms will self-heal the
infected system based on prior knowledge and information. If the ransomware/malware is a zero-day exploit that has never seen before, ARC’s ML algorithms will activate, add that to its database of new exploits and capture it for further analysis.
5. If all of the above fails and the ransomware/malware was still able to encrypt and hijack all the data, then Kapalya’s EMP will be used to recover all data.
ARC will be ready for beta trials in Q2, 2022 with a shipping product in Q3, 2022.
Our business model is an Annual Recurring Revenue (ARR) based for large enterprises and a monthly recurring revenue (MRR) based model for small to medium sized businesses. In the ARR model, customers get dedicated server licenses whereas in the MRR model, customers are in a multi-tenant shared server environment where the servers are shared with other customers.
THE MARKET
It is anticipated to exhibit 10.5% CAGR over the forecast period (2019-2025).
Enterprise spending on cloud security solutions is predicted to increase from $636 Million in 2020 to $1.63 Billion in 2023 - attaining a 26.5% CAGR.
Endpoint security tools are 24% of all I.T. security spending, and by 2020 global I.T. security spending will reach $128 Billion according to Morgan Stanley Research. And the global cyber insurance market is forecast to be $8 Billion by 2020, compared to a $124 Billion global cybersecurity market.
Organizations primarily focus their cyber risk management strategies on prevention by investing in technological frontline cyber defenses. Meanwhile, spending on other tools and resources for cyber risk management, such as cyber insurance or event response training, remains a fraction of the technology budget.
North America is expected to be the leading region in terms of adopting and developing encryption software. The increasing demand to adhere to stringent regulatory compliances, increasing presence of encryption software vendors, and growing government support are major growth factors for the market growth during the forecast period.
Kapalya’s EMP solution differs from our competition because each file and folder is assigned their own unique key. This unique feature makes it extremely difficult for any adversary to compromise all of the user's data because they would have to steal all the keys belonging to that user, something that is extremely difficult to do.
OUR TRACTION
To best display our progress, here’s a look at our list of partners:
Thales - Global encryption key server vendor: Kapalya is a Gold OEM partner and uses Thales virtual key servers as part of our solution.
Carahsoft – Leading IT supplier to the US Federal/State/Local governments. Kapalya is listed on Carahsoft’s government procurement vehicles such as GSA, SEWP.
CALTROP – Global partner and strategic investor that is reselling our solutions in Middle-East and Africa
Microland – Kapalya has signed up a reseller agreement with Microland, a global systems integrator.
IDTech – Kapalya has partnered with IDTech, a CACI Company, to offer our solutions within the DoD and Intelligence Community.
MTech - Leading cybersecurity distributor in Asia that will distribute Kapalya's solution to 16 Asian countries. In active trials now.
CoCre8 - South African cybersecurity reseller that is selling Kapalya’s solution within South Africa.
National Security Agency - We are jointly developing the ARC solution in collaboration with the National Security Agency under a cooperative research and development agreement.
National Science Foundation - They have funded further research and commercialization of our ARC solution.
WHY INVEST
Our vision is to be the leading counter ransomware solution provider globally in 4 years.
We believe to have the best minds and partnerships within the counter ransomware and counter intelligence community - which we will leverage to become market leaders.
Our strong ties with the US Federal Government give us an advantage over the competition because not only are we backed by them, but they will also become a large customer of our solution which will influence other governments globally to deploy our innovative solution.
We believe we are going places, and together - we can build a safer, more secure future.
Kapalya Inc. has been awarded a National Science Foundation (NSF) Small Business Innovation Research (SBIR) grant for $256,000 to conduct research and development (R&D) work on an AI based Advanced Counter Ransomware solution.
CoCre8 Technology Solutions are extremely excited to announce a distribution agreement with Caltrop for KAPALYA, an Encryption Management Platform. KAPALYA empowers businesses and their employees to securely store sensitive files at-rest and in-transit across multiple platforms.
Kapalya, an enterprise-grade cybersecurity startup, has closed a seed funding round led by Caltrop Holdings LLC, a global holdings company, headquartered in Irvine, California, USA.
Enterprise data is constantly getting breached perpetrated by sophisticated cybercriminals, who are looking to penetrate your system, steal your data, and may demand a ransom payment. Thankfully, there’s an encryption management platform like Kapalya.
Kapalya Inc. has been awarded a National Science Foundation (NSF) Small Business Innovation Research (SBIR) grant for $256,000 to conduct research and development (R&D) work on an AI based Advanced Counter Ransomware solution.
Company | : | Kapalya Inc. |
Corporate Address | : | 1935A Addison Drive, Berkeley, CA 94704 |
Offering Minimum | : | $10,000.00 |
Offering Maximum | : | $1,070,000.00 |
Minimum Investment Amount(per investor) | : | $300.00 |
Offering Type | : | Equity |
Security Name | : | Common Stock |
Minimum Number of Shares Offered | : | 8,000 |
Maximum Number of Shares Offered | : | 856,000 |
Price per Share | : | $1.25 |
Pre-Money Valuation | : | $14,958,800.00 |
Voting Rights of Securities Sold in this Offering
Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with the full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment has underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.
*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.
Investment Incentives and Bonuses
Time-Based:
Friends and Family Early Birds
Invest within the first 48 hours and receive an additional 20% bonus shares.
In addition, each investor will become part of Kapalya’s Private owners group.
Have personal time with Founders on Calls and Dinners.
Have early access to Kapalya’s new products and solutions
Super Early Bird Bonus
Invest within the first week and receive an additional 15% bonus shares
Early Bird Bonus
Invest within the first two weeks and receive an additional 10% bonus shares
Amount-Based:
$500+
Have personal time with Founders on Calls and Dinners
Invest $500+ and receive personal time with our founder on a call and for investors living in the San Francisco Bay Area or Greater Sacramento Area, receive a personal dinner invitation with our founder.
$1,000+
1% bonus Shares
Invest $1,000+ and receive an additional 1% bonus shares
$2,500+
2% bonus Shares
Invest $2,500+ and receive an additional 2% bonus shares
$5,000+
5% bonus Shares
Invest $5,000+ and receive an additional 5% bonus shares
$10,000+
10% bonus Shares
Invest $10,000+ and receive an additional 10% bonus shares
$20,000+
20% bonus Shares
Invest $20,000+ and receive an additional 20% bonus shares
In addition, each investor will become part of Kapalya’s Private owners group
Have personal time with Founders on Calls and Dinners.
*All perks occur when the offering is completed.
The 10% StartEngine Owners' Bonus
Kapalya will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $1.25 / share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $125. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investor's eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
Insider Investment Notice
Officers, directors, executives, and existing owners with a controlling stake in the company (or their immediate family members) may make investments in this offering. Any such investments will be included in the raised amount reflected on the campaign page.
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Proud to announce that our CEO was a featured guest speaker on a radio show in Australia. He spoke about the dangers of ransomware and what companies and individuals should be aware of especially during this time of heightened cyber threats from foreign nations. Full video interview can be viewed here. https://www.facebook.com/events/1328211747699419?ref=newsfeed
We are very excited that the State of Hawaii has selected Kapalya as one of their innovative companies and has committed grant funds for our research and development efforts, which allows us to serve the State of Hawaii as a customer and strategic partner.
This further demonstrates the endorsement of our deep-technical solutions not only by US Federal Agencies, but also state governments.
IAG, one of the largest insurance groups in Australia has selected Kapalya as one of their cybersecurity partners to participate in their accelerator program. Under this program, Kapalya will meet key executives and stakeholders of IAG in Sydney, Australia and their counterparts in Singapore, to better understand their insurance offerings and how Kapalya's solution will help mitigate risks to IAG and their customers.
This is huge breakthrough for Kapalya as now we get first hand knowledge about the insurance challenges faced by insurance companies and their customers, allowing us to customize our solutions and serve that industry, going us a captive client base across multiple countries.
Additional details about IAG :
Headquartered in Sydney, Australia; revenues exceeding $11B with 13,500 employees and operations in Australia, New Zealand, Thailand, Malaysia.
They have multiple subsidiaries and equity positions with the following organizations:
I am pleased to announce that today Kapalya has received additional grants from the National Science Foundation.
With recent increases in cyberattacks due to the the conflict between Russia and Ukraine, the need for Kapalya's solutions has become more critical. To that end, the US government has shown their commitment for Kapalya's Advanced Ransomware Countermeasures (ARC) technology by providing additional follow on grant money.
Our pursuit to create innovative and cutting-edge counter ransomware solutions remains strong as we continue our journey to combat ransomware.
Proud to announce that one of the most respected and widely circulated daily newspapers in India, "The Hindu", has published a story on Kapalya. This underscores the importance of Kapalya's unique solutions to combat ransomware and demonstrates that corporations and governments globally, are taking a very serious look at our technology stack.
You can read the full story here
Proud to announce that Kapalya was featured in Business India, a leading news publication in India.
They recognized Kapalya's work in combatting ransomware and how it is relevant to India. This shows that Kapalya's solution has global appeal and people in other countries are also realizing the need for an Advanced Ransomware Countermeasures solution.
Excited to announce that we have on-boarded one of the largest cybersecurity distributor in Asia - MTECH. Their corporate headquarters is in Singapore with operations in 16 Asian countries. They distribute only cyber security products and solution from leading cybersecurity vendors and Kapalya has joined that list with them, which you can view here.
We will be working closely with MTECH's India office initially and then expand to other countries. Their reseller network is very extensive, who will now be reselling Kapalya's EMP product immediately and ARC product in future.
As we enter the 7th day of our campaign, I would like to personally thank everyone that has invested. Your support allowed us to raise over $100K in 5 days. It’s a testimony that like us, all of you are also concerned about the growing ransomware threat and have taken steps to help us fight this global problem.
In the coming days, I will share more exciting news about our progress and announce strategic partnerships with leading cybersecurity vendors, so stay tuned.
From the entire Kapalya team, we really appreciate everyone’s commitment to combatting ransomware and thank all of you for your investment.
Warm regards,
Sudesh Kumar for Team Kapalya
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