EMERYVILLE — Tanium, a developer of security and IT operations platform, has raised an additional $100 million in a sale of common stock. The round was led by TPG Growth with other existing investors, including IVP. The latest round, which also brings in a new investor, raised the company’s value to $3.75 billion.
The $100 million was raised through the issuance of common stock, which is testament to the confidence the investor community has in the company’s future. Previous funding rounds in the company historically offered only preferred stock.
“Our investment in Tanium reflects our confidence in the company’s unique platform, which not only meets the IT and security needs of its business customers today, but equips them with the tools necessary for a secure and efficient future,” said Bryan Taylor, Partner at TPG.
Some of the proceeds have been used to repurchase shares from Tanium Executive Chairman and co-founder David Hindawi to enable him to fund his charitable endeavors, which are focused on early education and giving disadvantaged children a healthy start to life. The balance of the proceeds will be used to provide liquidity to early employees and early investors and for general corporate purposes.
“It’s so unusual to find a company like Tanium,” said Somesh Dash, General Partner at IVP. “Most companies in the security space lack the combination of differentiated technology with a scalable capital-efficient business model. With Tanium, we’re not only investing in a technology platform we believe in, but also a proven business model that is delivering real revenue today, with the momentum to carry it well into the future.”
With more than $300 million in cash and investments before this round, over 100% revenue growth last year, and positive operating cash flow, Tanium is in a position of strength uncommon for companies in the security and IT space. In its 2016 fiscal year, which ended January 31, 2017, Tanium added almost 100 new enterprise customers, cementing its status as an essential asset in helping the world’s largest companies and government organizations solve critical business challenges. Tanium’s clients include 12 of the top 15 US banks and 6 of the top 10 retailers. The company has strong penetration in the Fortune 100 as well as many agencies of the US Federal government.