Record Growth and Customer Momentum Draws Largest-Ever Funding Round In Security Industry, Validates Lacework as Most Trusted, Innovative Data-Driven Security Platform for the Cloud
SAN JOSE, Calif., Nov. 18, 2021 /PRNewswire/ -- Lacework, the data-driven security platform for the cloud, today announced it has raised $1.3 billion in growth funding at a valuation of $8.3 billion. With this capital, which is the largest funding round in security industry history, Lacework will continue to invest in rapidly scaling its business globally, building on recent momentum of more than 3x year-over-year revenue growth, a 3.5x year-over-year increase in new customers, including LogicMonitor, Hypergiant, Sprinklr, and more than 3x year-over-year employee growth worldwide.
This Series D round was led by existing investors Sutter Hill Ventures, Altimeter Capital, D1 Capital Partners, and Tiger Global Management with participation from new investors including Counterpoint Global (Morgan Stanley), Durable Capital, Franklin Templeton, General Catalyst, and XN. Coatue, Dragoneer, Liberty Global Ventures, and Snowflake Ventures, all existing investors, also participated.
The founding thesis of Lacework is that cloud security is fundamentally a data problem. Solving this problem - brought on by the enormous scale, evolving technologies, adaptive infrastructure, and constant change of cloud environments - requires rethinking the traditional approach to security. The Lacework Cloud Security Platform is the only technology that integrates security natively from code to run time and is fueled by Polygraph®, a data-first patented machine-learning engine that delivers less noise, lower risk, and higher ROI. Only Lacework empowers customers with the automation to see and understand cloud changes at scale without requiring manual intervention by security teams, leading to safer innovation at higher velocity.
Lacework will use this funding to extend its lead in the cloud security market by fueling product innovation that expands the company's total addressable market and pursuing additional strategic acquisitions, like the recently announced Soluble transaction. The addition of Soluble enhances the capabilities of the Lacework Cloud Security Platform to further enable organizations to integrate security practices earlier in their software delivery process. The company will also scale go-to-market strategies, growing the Lacework workforce and the company's presence globally to better serve customers.
The ecosystem surrounding Lacework, including IaC, CI/CD, and workflow integrations such as Kubernetes, Terraform, and Jira, strong and growing alliances with partners like Snowflake, New Relic, Amazon Web Services, Google Cloud Platform (GCP), Microsoft Azure and growing channel partnerships with companies including Presidio, EVOTEK, Guidepoint, GlobalDots, and Katana1 are continuing to drive outsized momentum. Today partners influence more than 60 percent of the company's new business and are helping to scale go-to-market at an ever-increasing pace.
"As organizations of all sizes continue building applications in the cloud, more critical data will be exposed and exploited. Lacework is building an impressive business by offering companies a transformative approach to securing their data in the cloud. That approach is already driving 3x year-over-year revenue growth, and we believe there is still substantial opportunity ahead. We're excited to partner with Lacework as it pursues its strategy for long-term sustainable growth," said Dennis Lynch, Head of Counterpoint Global (Morgan Stanley).
"With enterprises shifting faster to cloud-native architectures, the cybersecurity industry is in dire need of increased automation, higher signal-to-noise, and fewer point solutions. This is a daunting task, and it requires a platform that can scale with the enormous growth of data flowing through an organization's cloud infrastructure. To this end, Lacework has built something that's powerful and unique, positioning it to be one of this generation's most important cybersecurity companies," said Matt Cioppa, Vice President, Franklin Templeton.
"Lacework's Cloud Security Platform was built in the cloud, for the cloud. It's a fundamentally different - and better - approach to security that is already dramatically reshaping the security market. With an outstanding platform and an exceptional team, for the past 36 months Lacework has repeatedly outperformed its competitors and consistently exceeded its targets across a wide range of very ambitious metrics. We continue to believe this is one of our most promising portfolio companies," said Mike Speiser, Managing Director, Sutter Hill Ventures.
"Lacework's judicious application of AI and ML to generate and surface the most critical events is what sets the platform apart," said Bren Biggs, VP of DevOps and Cybersecurity at Lacework customer, Hypergiant.
"Business and technology leaders understand that security and governance are important issues, but they continue to struggle with solutions that can't keep up with the enormous scale, IT complexity, evolving technologies and constantly changing hybrid cloud landscape. There is a growing need for organizations like Lacework that look at cloud security through a new lens and adapt data-driven technologies that enable security efficacy and delivery efficiency," said Frank Dickson, IDC Program Vice President, Security & Trust.
"Our growth over the last 36 months reflects the pain many businesses endure as they attempt to navigate the cloud using security products that simply aren't designed for it. This investment, and the partnership of these long-term investors, will help us realize Lacework's promise of becoming the most trusted cloud security platform," said David Hatfield and Jay Parikh, Co-CEOs, Lacework.
Lacework is the data-driven security platform for the cloud. The Lacework Cloud Security Platform, powered by Polygraph, automates cloud security at scale so our customers can innovate with speed and safety. Only Lacework can collect, analyze, and accurately correlate data across an organization's AWS, Azure, GCP, and Kubernetes environments, and narrow it down to the handful of security events that matter. Customers all over the globe depend on Lacework to drive revenue, bring products to market faster and safer and consolidate point security solutions into a single platform. Founded in 2015 and headquartered in San Jose, Calif., Lacework is backed by leading investors like Sutter Hill Ventures, Altimeter Capital, D1 Capital Partners, Tiger Global Management, Counterpoint Global (Morgan Stanley), Franklin Templeton, Durable Capital, General Catalyst, XN, Coatue, Dragoneer, Liberty Global Ventures, and Snowflake Ventures, among others. Get started at www.lacework.com.
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