Australian security startup Bugcrowd recently announced that it has closed a $1.6 million seed round with participation from Icon Venture Partners, Paladin Capital Group, Square Peg Capital, and select angel investors (h/t SC Magazine).

The company says the funds will be used to develop sales and marketing operations, expand its team, and support its community of more than 3,000 security testers.

Bugcrowd offers enterprise customers a technology platform and a community of security testers to essentially outsource their bug bounty program. Bugcrowd's community of researchers then compete for cash bounties by performing penetration testing on the customers' Web and mobile platforms.

"The company's technology shows considerable potential as a solution to the growing asymmetry between security threats and security testing resources," Lieutenant General (Ret.) Ken Minihan, managing director at Paladin Capital Group, said in a statement. "It allows corporates and governments to access a global, 24x7 resource of trusted security testers."