The Snowden Effect: Secure Email Company Booms (Bloomberg)
Berlin-based Posteo e.K, founded in 2009, struggled mightily to find customers for its secure email business during its first four years of operation. However, ever since National Security Agency contractor Edward Snowden began revealing the extent to which that U.S. government agency spied on people by monitoring their phone calls and emails, business has tripled. And this company isn’t the only one feeling the effects of Snowden’s admissions. As more consumers focus on Internet privacy, they’re looking for more secure alternatives to Google, Amazon and Yahoo. And privacy-based start-ups have been the main beneficiaries, including companies like S&T from Linz, Austria, that has experienced almost 50 percent revenue growth, and Cancom SE — a German company — that’s seen its share price jump up 69 percent since June. As the reach of the NSA’s penetration becomes known, interest and investment in these smaller players may reward investors.
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