DataStealth - Volition Capital

Cybersecurity
IT Infrastructure

DataStealth is an enterprise data security platform that discovers, classifies, and protects sensitive data, all without code changes, APIs, or agents.

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About DataStealth

DataStealth is an enterprise data security platform that discovers, classifies, and protects sensitive data, all without code changes, APIs, or agents. Regulated enterprises use DataStealth to neutralize breach impact and shrink compliance scope across their entire environment, from on-premise to hybrid to cloud.

Background

Despite record security spending, enterprise cyber breaches remain routine and expensive, a reality exacerbated by 1) enterprise AI adoption creating new exposure points, and 2) broader data proliferation expanding the attack surface. At the same time, both the pace and fragmentation of data security regulation are increasing. Between GDPR, PCI DSS 4.0, and comprehensive privacy laws now in effect in roughly half of U.S. states, enterprises face compounding, simultaneous obligations to know where their data lives and prove they are protecting it. The next wave of frontier technology only raises the stakes, from ‘harvest now, decrypt later’ quantum threats to AI copilots that surface sensitive data they were never meant to see. Such risks are driving a structural shift in how enterprises think about security, away from defending the perimeter and toward protecting the data itself.

Tokenization shrinks both breach impact and compliance scope in a single motion. Because tokens have no mathematical relationship to the original data, stolen records are worthless to attackers, and systems that hold only tokens can fall out of regulatory scope entirely, often removing the majority of an enterprise’s environment from audit. That same absence of a reversible cryptographic key makes tokenized data structurally resistant to the quantum threats that loom over traditional encryption. And because tokens preserve the format of original values, downstream systems keep operating without modification (even decades-old mainframes), so enterprises gain this protection without rearchitecting the applications that depend on the data.

Why We Invested

Using a combination of tokenization, encryption, and dynamic masking, DataStealth helps enterprises keep sensitive information invisible to threats, while keeping it fully usable for the systems and people that need it. Its inline, DNS-based architecture deploys in hours and requires no rebuilds of the underlying applications, a meaningful advantage in the complex, legacy-laden environments where regulated enterprises operate. In a market crowded with tools that identify sensitive data but stop short of protecting it, DataStealth’s unification of discovery, classification, and protection under one roof has resonated strongly.

Led by a team of proven cybersecurity executives, DataStealth has bootstrapped itself to meaningful scale, demonstrating top-tier retention across a blue-chip base of customers. The business represents CEO Jim Barkdoll and Executive Chairman Michael Hyatt’s sixth cybersecurity venture in aggregate, spanning prior success stories like BlueCat Networks (acq. by Madison Dearborn, Audax), Titus (acq. by Blackstone, Fortra), Dyadem (acq. by IHS), Stealthbits (acq. by Netwrix), and Axiomatics (acq. by Leonardo). As AI accelerates the volume and velocity of sensitive data in motion, DataStealth has the leadership, technology, and timing to become a category leader in data-centric security, and we are thrilled to partner with the team on its next stage of growth.