Lacework Banks $525 Million as Cloud Security Market Heats Up
Lacework, a five-year-old cybersecurity company that automates security across enterprise cloud deployments, has reached unicorn status with the closing of a $525 million round of Series D financing.
The Silicon Valley company, which automates security across public and private cloud deployments, is now valued north of $1 billion.
Driven by post-pandemic digital transformation that has speeded up massive cloud deployments, Lacework said its revenues jumped 300 percent for the second straight year and with the new funding in hand, the company now plans to speed up market expansion and investments in operations, engineering and research and development.
The latest funding round was Led by Sutter Hill and Altimeter Capital, and joined by D1, Coatue, Dragoneer Investment Group, Liberty Ventures, Snowflake Ventures and Tiger Capital.
The company said the hefty funding round reflects its accelerated adoption among digital businesses building on Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP) and Kubernetes.
Lacework chief executive officer Dan Hubbard says the new money will drive “product differentiation leadership” in a competitive market. “Building on cloud is the biggest shift the IT industry has ever witnessed. Constant cloud changes require a new approach to security that is critical for our customers for adapting and scaling as fast as cloud innovation,” Hubbard said.
“This funding, which may be the largest raise in the history of security companies at $525 Million and well over a billion dollar valuation, demonstrates that our original thesis not only holds true but is accelerating with cloud adoption, the velocity of innovation, and the threat landscape,” Hubbard added.
The new money comes just one year after the Mountain View, Calif-based Lacework closed a $42 Million Series C funding round from Sutter Hill Ventures and Liberty Ventures, bringing the total raised to $74 million.
Lacework was founded in January 2015 by Sanjay Kalra (CPO) and Vikram Kapoor (CTO) with a plan to simplify and automate the security of enterprise cloud deployments.