Secure access tech dev Netskope scores $401m


Netskope, a secure access service edge (SASE) provider, has closed an oversubscribed investment round on $401m.

The convertible note investment round was led by funds managed by Morgan Stanley Tactical Value. Additional support came from Goldman Sachs Asset Management, Ontario Teachers’ Pension Plan, and CPP Investments.

With the funds, the company plans to extend its technology and platform, as well as bolster the expansion of its strategic go-to-market activities. The company also hopes it can increase its market reach, which it claims is on track to be a $36bn market opportunity by 2025.

Netskope offers a SASE platform that helps organisations apply zero trust principles to protect data. It boasts real-time security and optimised access for people, devices and data anywhere.

Netskope CEO and co-founder Sanjay Beri said, “Our vision from day one was that traditional network and security perimeters would transform, with users, data, and devices moving outside the confines of corporate network perimeters and requiring a new approach to security.

“With a cloud-first, data-first, and customer-centric philosophy, we built a market-leading SASE platform and one of the world’s fastest and most-connected security cloud networks.”

Over the past year, the company has increased its customer base to exceed 2,400 people around the world. Its customers include over 25 of the Fortune 100, and across all verticals including financial services, healthcare, retail, telecommunications, manufacturing, government, high tech, and more.

 Over the past year, it has also increased its patent portfolio to more than 100 global patents, grew its security private cloud, increased its corporate footprint and established more go-to-market partnerships. It has partnerships with  Orange, Deloitte, Telefonica, KPN, AWS, Google Cloud, CrowdStrike, Mimecast, Okta, and others. 

Morgan Stanley managing director Pedro Teixeira added, “Cloud migration—and securing this modern network—represents one of the most significant and transformative technology shifts in decades.

“We seek to invest in high-quality companies that are driving their markets today and into the future.  Netskope epitomises this, with its innovative SASE vision and solid execution, a robust platform with significant monetization ahead of it, a large global customer base, and defensible market leadership. We look forward to partnering with the team as they strive to realise the significant opportunity that lies ahead.”

Netskope reached a $7.5bn valuation in 2021, following the close of a $300m investment. The capital was supplied by ICONIQ Growth.

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