Threat Stack, provider of an intrusion detection platform for cloud, hybrid-cloud, and on-premise environments, has raised USD45 million in a Series C funding round led by F-Prime Capital Partners, the venture capital group associated with the parent company of Fidelity Investments, and Eight Roads Ventures, with participation from existing investors Scale Venture Partners, .406 Ventures, and Accomplice.
As part of the funding, which brings the total investment in Threat Stack to more than USD70 million, Gaurav Tuli of F-Prime will join Threat Stack’s Board of Directors and Davor Hebel of Eight Roads Ventures will be an observer.
“The migration of computing workloads to public cloud environments represents the most significant shift in enterprise technology of the last 15 years. Cybersecurity continues to be the most acute challenge in the move to cloud, as cloud infrastructure is elastic and complex and attackers are operating at unprecedented speed and sophistication,” says Tuli. “Cloud security requires new approaches and new solutions, and Threat Stack is a rare security company that is purpose-built to address these unique challenges. Our investment will help drive continued innovation to meet the rapidly expanding market demand.”
On the heels of announcing 235 per cent YoY revenue growth and 84 per cent employee headcount expansion as of July, Threat Stack plans to grow its employee base another 30 per cent by the end of 2017, while nearly doubling the size of its downtown Boston headquarters. The company is also committed to continued investment and innovation in Boston, as it simultaneously works to expand its footprint in North America and around the globe.
“Building on strong customer adoption and robust organic growth, we have set our sights on growing opportunities in existing markets and expanding into new ones. Further investment in innovation will drive Threat Stack’s continued leadership in the cybersecurity market,” says Brian M Ahern, Threat Stack Chairman and CEO. “We’ve been able to help all sizes of companies – from small, rapidly scaling startups to massive corporations with complex legacy infrastructure. Every company is looking to get their arms around the security of their infrastructure. Most are dealing with a shortage of security talent and increasingly automated development processes – so there is a unique need for deploying security at speed and scale. Threat Stack has built a platform for both security and operations teams to do just that. The market opportunity ahead is enormous.”
“Security is still the number one barrier to cloud adoption around the world,” said Davor Hebel, Partner and Head of Europe Ventures at Eight Road Ventures. “Threat Stack has emerged as an early standard setter with many high profile cloud-native companies choosing it as their central security tool. We are thrilled to partner with Brian and his ambitious team to help scale the business internationally and capture this unique global opportunity.”
