Sumitomo 'WhatsApp of email' deal ups Japan's cybersecurity game

Conglomerate and US startup PreVeil see huge market for end-to-end encryption

20191119 North Korea cyber attack Lazarus

High-profile hacking incidents, including the Sony email leak, are expected to drive demand for cybersecurity services in Japan. © Reuters

YIFAN YU, Nikkei staff writer

November 20, 2019 18:13 JST

BOSTON, U.S. -- Sumitomo Corp. is looking to cash in on Japan's growing cybersecurity concerns with a roughly $7 million investment in U.S. software encryption startup PreVeil.

The investment was made through Sumitomo's investment arm Presidio Ventures and will help the Boston-based startup make its first foray into Japan, which is looking to boost its cybersecurity ahead of next year's Olympic Games.