Lacework which provides end-to-end cloud security automation for AWS, Azure, and GCP cloud workloads and containers has raised $1.3 billion in a new funding round to bolster its position in the cloud security market, bringing the company to an $8.3 billion valuation. Announced on Thursday, the Series D funding round was led by existing investors Sutter Hill Ventures, Altimeter Capital, D1 Capital Partners, and Tiger Global Management. New investors have joined, including Liberty Global, General Catalyst, Snowflake Ventures, and Morgan Stanley Investment Management.
With this capital, which is the largest funding round in security industry history, 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, including LogicMonitor, Hypergiant, Sprinklr, and more than 3x year-over-year employee growth worldwide.
Founded in 2015, Lacework develops cloud security solutions for the cloud, containers, and DevOps teams. The Lacework Cloud Security Platform collects, analyzes, and compiles security and threat data for anomaly detection, event and alert visualization, and compliance. The San Jose, Calif.-based company counts Cloudera, VMware, Nextdoor, and Snowflake among its customers.
Lacework says the cash injection will be used to expand go-to-market strategies in the cloud security sector and to fund product development and innovation. In addition, the security firm says that some of the funding will be used to “pursue additional strategic acquisitions,” building upon the recent purchase of Soluble.
Soluble, a cloud infrastructure management company, was acquired earlier this month. The purchase price was not disclosed. Lacework previously closed a $525 million funding round. The company has now completed five separate funding rounds since 2015.
Mike Speiser, Managing Director of Sutter Hill Ventures, commented: “Lacework’s Cloud Security Platform was built in the cloud, for the cloud. It’s a fundamentally different — and better — approach to security that is already dramatically reshaping the security market. With an outstanding platform and an exceptional team, Lacework has repeatedly exceeded every goal over the last 18 months. We continue to believe this is one of our most promising portfolio companies.”
