SAN JOSE – Lacework, which operates a security platform for the cloud, has raised one of the biggest rounds of funding ever at $1.3 billion. The company is now valued at $8.3 billion.
With this capital, which is the largest funding round in security industry history, Lacework plans to invest in rapidly scaling its business globally. The company says it has experienced 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 ponied up money.
“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.
Launched in 2015, 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.
“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 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.