Lacework closes security industry’s largest funding round ever

Data-driven security platform Lacework has been valued at $8.3bn, after the close of a $1.3bn funding round, which it claims is the largest in security industry history.

Sutter Hill Ventures, Altimeter Capital, D1 Capital Partners and Tiger Global Management served as the lead investors. Commitments also came from Counterpoint Global (Morgan Stanley), Durable Capital, Franklin Templeton, General Catalyst, XN, Coatue, Dragoneer, Liberty Global Ventures and Snowflake Ventures.

Lacework claims all its existing investors participated in the round.

With the funds, the company hopes to scale its business globally, and capitalise on its three-times year-over-year revenue growth. Its customer base has also grown by 3.5-times year-over-year.

Capital will also be used expand its product innovation and acquisition efforts. It recently acquired Soluble to help organisations integrate security practices earlier in their software delivery process.

Lacework’s founding thesis is that cloud security is fundamentally a data platform. To solve this challenge, which is caused by the enormous scale, evolving technologies, adaptive infrastructure, and constant change of cloud environments, requires a fresh approach to security.

The CyberTech company claims its Lacework Cloud Security Platform is the only technology that integrates security natively from code to run time and is powered by Polygraph, a data-first machine learning engine.

Customers benefit from automation services to see and understand cloud changes at scale, without needing manual intervention.

Franklin Templeton vice president Matt Cioppa said, “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.”

Lacework earned its horn at the start of the year, with a $525m funding round putting its valuation at $1.3bn.

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