Developer Security Firm Snyk Raises USD 300 million
Snyk, a Boston-based developer of application security technology, now values the company at USD 4.7 billion after a new fundraising and secondary sale totaling USD 300 million.
In total, the investors have invested about USD 470 million into the company. The new investment was led by Accel and Tiger Global, with the participation of existing investors like Boldstart Ventures, Addition, Coatue, Canaan Partners, GV, Salesforce Ventures, and funds managed by Blackrock.
New investors joining Accel and Tiger on the cap table included Alkeon, Franklin Templeton, Atlassian Ventures, Geodesic Capital, Sands Capital Ventures and Temasek.
It is probably that this will be Snyk’s last round before a public offering. As the markets for enterprise software companies have been rising recently, Snyk should also see a positive rise.
Snyk’s worth and high valuation have been achieved by its ability to offer an application security platform that as per the company has been designed to provide security visibility for every component of modern applications along with their code, open-source libraries, and infrastructure as code.
Investors seem to believe the company’s claims of new hiring including Chief Marketing and Customer Experience Officer Jeff Yoshimura, an ex-executive at Elastic; CIO Erica Geil, who initially worked at Groupon; and Vice President, Asia Pacific Japan (APJ) Sales, Shaun McLagan, who initially worked for EMC.
After the funding, Michael Scarpelli, Chief Financial Officer at Snowflake and Board Member of Snyk and Ping Li, a longtime enterprise software investor and a Partner at Accel seemed to be extremely happy.
Li said, “We were introduced to the Snyk team during the beginning of their journey, as early investors. During our partnership, we have witnessed Snyk’s unshakeable dedication to the developer and security teams and their original vision is farsighted. We are looking forward to supporting the successes of Snyk in 2021 and years beyond.”
Snyk’s financing comes as application vulnerabilities are becoming popular attack vector for hackers. Roughly 43 percent of data breaches have been linked back to the flaws in applications, according to the company.
Meanwhile, a dearth of developers in the market focused on security means that automation has to do more heavy lifting. Snyk said that it provides that through automated remediation and the integration of security features directly into developer workflows. The company promises to offer real-time answers to the security questions of coders.
To date, that suite of services has meant more than 27 million developers around the world are using Snyk tools and the company also provides a marketplace for security coders to pitch their tools on the Snyk platform.
Chris Hecht, Head of Corporate Development, Atlassian said, “We believe that Snyk’s developer-first approach to security is a fantastic tool for developers and organizations. Snyk has already showcased some great integrations using our tools, and we are now elated to extend our partnership with the firm through Atlassian Ventures investment.”