Cloud Security Firm Lacework Raises Record-Breaking $1.3 Billion
Cloud security firm Lacework has raised a record-breaking $1.3 billion in a second Series D funding round led by existing investors Sutter Hill Ventures, Altimeter Capital, D1 Capital Partners, and Tiger Global Management. New investors include Franklin Templeton, Morgan Stanley Investment Management, Durable Capital, General Catalyst and XN.
Following the massive infusion of cash, investors are valuing the company at $8.3 billion.
San Francisco, California-based Lacework was founded in 2015 by Mike Speiser (managing director of Sutter Hill Ventures) Sanjay Kalra (now founder and CEO at ShiftRight), and Vikram Kapoor (CTO). It was built on the principal that cloud security is fundamentally a data problem, and uses its machine-learning Polygraph platform to collect, analyze, and correlate all corporate data across hybrid AWS, Azure, Google Cloud and Kubernetes environments.
Polygraph’s ability to use AI and machine learning to surface the most critical events with the least amount of noise is key to the company’s growth.
The company was in the right place at the right time to benefit from the surge in cloud take-up caused by the pandemic. “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, and more than 3x year-over-year employee growth worldwide,” says the firm.
Specifically, Lacework will use the new funding to scale its go-to-market strategies, to grow its workforce and global presence, to fuel product innovation, and to pursue additional strategic acquisitions. On November 11, 2021, Lacework announced its acquisition of Soluble in a move designed to strengthen its security platform with new DevSecOps capabilities.
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“Our growth over the last 18 months reflects the pain many businesses endure as they attempt to navigate the cloud using security products that simply aren’t designed for it,” say David Hatfield and Jay Parikh, co-CEOs at Lacework.
Matt Cioppa of investing firm Franklin Templeton, adds, “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.”
Lacework raised $24 million in an August 2018 Series B funding round, $42 million in a September 2019 Series C funding round, and a further $525 million in its first January 2021 Series D funding round.
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