Feb
19
2020
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SentinelOne raises $200M at a $1.1B valuation to expand its AI-based endpoint security platform

As cybercrime continues to evolve and expand, a startup that is building a business focused on endpoint security has raised a big round of funding. SentinelOne — which provides a machine learning-based solution for monitoring and securing laptops, phones, containerised applications and the many other devices and services connected to a network — has picked up $200 million, a Series E round of funding that it says catapults its valuation to $1.1 billion.

The funding is notable not just for its size but for its velocity: it comes just eight months after SentinelOne announced a Series D of $120 million, which at the time valued the company around $500 million. In other words, the company has more than doubled its valuation in less than a year — a sign of the cybersecurity times.

This latest round is being led by Insight Partners, with Tiger Global Management, Qualcomm Ventures LLC, Vista Public Strategies of Vista Equity Partners, Third Point Ventures and other undisclosed previous investors all participating.

Tomer Weingarten, CEO and co-founder of the company, said in an interview that while this round gives SentinelOne the flexibility to remain in “startup” mode (privately funded) for some time — especially since it came so quickly on the heels of the previous large round — an IPO “would be the next logical step” for the company. “But we’re not in any rush,” he added. “We have one to two years of growth left as a private company.”

While cybercrime is proving to be a very expensive business (or very lucrative, I guess, depending on which side of the equation you sit on), it has also meant that the market for cybersecurity has significantly expanded.

Endpoint security, the area where SentinelOne concentrates its efforts, last year was estimated to be around an $8 billion market, and analysts project that it could be worth as much as $18.4 billion by 2024.

Driving it is the single biggest trend that has changed the world of work in the last decade. Everyone — whether a road warrior or a desk-based administrator or strategist, a contractor or full-time employee, a front-line sales assistant or back-end engineer or executive — is now connected to the company network, often with more than one device. And that’s before you consider the various other “endpoints” that might be connected to a network, including machines, containers and more. The result is a spaghetti of a problem. One survey from LogMeIn, disconcertingly, even found that some 30% of IT managers couldn’t identify just how many endpoints they managed.

“The proliferation of devices and the expanding network are the biggest issues today,” said Weingarten. “The landscape is expanding and it is getting very hard to monitor not just what your network looks like but what your attackers are looking for.”

This is where an AI-based solution like SentinelOne’s comes into play. The company has roots in the Israeli cyberintelligence community but is based out of Mountain View, and its platform is built around the idea of working automatically not just to detect endpoints and their vulnerabilities, but to apply behavioral models, and various modes of protection, detection and response in one go — in a product that it calls its Singularity Platform that works across the entire edge of the network.

“We are seeing more automated and real-time attacks that themselves are using more machine learning,” Weingarten said. “That translates to the fact that you need defence that moves in real time as with as much automation as possible.”

SentinelOne is by no means the only company working in the space of endpoint protection. Others in the space include Microsoft, CrowdStrike, Kaspersky, McAfee, Symantec and many others.

But nonetheless, its product has seen strong uptake to date. It currently has some 3,500 customers, including three of the biggest companies in the world, and “hundreds” from the global 2,000 enterprises, with what it says has been 113% year-on-year new bookings growth, revenue growth of 104% year-on-year and 150% growth year-on-year in transactions over $2 million. It has 500 employees today and plans to hire up to 700 by the end of this year.

One of the key differentiators is the focus on using AI, and using it at scale to help mitigate an increasingly complex threat landscape, to take endpoint security to the next level.

“Competition in the endpoint market has cleared with a select few exhibiting the necessary vision and technology to flourish in an increasingly volatile threat landscape,” said Teddie Wardi, managing director of Insight Partners, in a statement. “As evidenced by our ongoing financial commitment to SentinelOne along with the resources of Insight Onsite, our business strategy and ScaleUp division, we are confident that SentinelOne has an enormous opportunity to be a market leader in the cybersecurity space.”

Weingarten said that SentinelOne “gets approached every year” to be acquired, although he didn’t name any names. Nevertheless, that also points to the bigger consolidation trend that will be interesting to watch as the company grows. SentinelOne has never made an acquisition to date, but it’s hard to ignore that, as the company to expand its products and features, that it might tap into the wider market to bring in other kinds of technology into its stack.

“There are definitely a lot of security companies out there,” Weingarten noted. “Those that serve a very specific market are the targets for consolidation.”

Jan
06
2020
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BigID bags another $50M round as data privacy laws proliferate

Almost exactly 4 months to the day after BigID announced a $50 million Series C, the company was back today with another $50 million round. The Series C extension came entirely from Tiger Global Management. The company has raised a total of $144 million.

What warrants $100 million in interest from investors in just four months is BigID’s mission to understand the data a company has and manage that in the context of increasing privacy regulation including GDPR in Europe and CCPA in California, which went into effect this month.

BigID CEO and co-founder Dimitri Sirota admits that his company formed at the right moment when it launched in 2016, but says he and his co-founders had an inkling that there would be a shift in how governments view data privacy.

“Fortunately for us, some of the requirements that we said were going to be critical, like being able to understand what data you collect on each individual across your entire data landscape, have come to [pass],” Sirota told TechCrunch. While he understands that there are lots of competing companies going after this market, he believes that being early helped his startup establish a brand identity earlier than most.

Meanwhile, the privacy regulation landscape continues to evolve. Even as California privacy legislation is taking effect, many other states and countries are looking at similar regulations. Canada is looking at overhauling its existing privacy regulations.

Sirota says that he wasn’t actually looking to raise either the C or the D, and in fact still has B money in the bank, but when big investors want to give you money on decent terms, you take it while the money is there. These investors clearly see the data privacy landscape expanding and want to get involved. He recognizes that economic conditions can change quickly, and it can’t hurt to have money in the bank for when that happens.

That said, Sirota says you don’t raise money to keep it in the bank. At some point, you put it to work. The company has big plans to expand beyond its privacy roots and into other areas of security in the coming year. Although he wouldn’t go into too much detail about that, he said to expect some announcements soon.

For a company that is only four years old, it has been amazingly proficient at raising money with a $14 million Series A and a $30 million Series B in 2018, followed by the $50 million Series C last year, and the $50 million round today. And Sirota said, he didn’t have to even go looking for the latest funding. Investors came to him — no trips to Sand Hill Road, no pitch decks. Sirota wasn’t willing to discuss the company’s valuation, only saying the investment was minimally diluted.

BigID, which is based in New York City, already has some employees in Europe and Asia, but he expects additional international expansion in 2020. Overall the company has around 165 employees at the moment and he sees that going up to 200 by mid-year as they make a push into some new adjacencies.

Aug
21
2019
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Splunk acquires cloud monitoring service SignalFx for $1.05B

Splunk, the publicly traded data processing and analytics company, today announced that it has acquired SignalFx for a total price of about $1.05 billion. Approximately 60% of this will be in cash and 40% in Splunk common stock. The companies expect the acquisition to close in the second half of 2020.

SignalFx, which emerged from stealth in 2015, provides real-time cloud monitoring solutions, predictive analytics and more. Upon close, Splunk argues, this acquisition will allow it to become a leader “in observability and APM for organizations at every stage of their cloud journey, from cloud-native apps to homegrown on-premises applications.”

Indeed, the acquisition will likely make Splunk a far stronger player in the cloud space as it expands its support for cloud-native applications and the modern infrastructures and architectures those rely on.

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Ahead of the acquisition, SignalFx had raised a total of $178.5 million, according to Crunchbase, including a recent Series E round. Investors include General Catalyst, Tiger Global Management, Andreessen Horowitz and CRV. Its customers include the likes of AthenaHealth, Change.org, Kayak, NBCUniversal and Yelp.

“Data fuels the modern business, and the acquisition of SignalFx squarely puts Splunk in position as a leader in monitoring and observability at massive scale,” said Doug Merritt, president and CEO, Splunk, in today’s announcement. “SignalFx will support our continued commitment to giving customers one platform that can monitor the entire enterprise application lifecycle. We are also incredibly impressed by the SignalFx team and leadership, whose expertise and professionalism are a strong addition to the Splunk family.”

May
13
2019
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India’s Locus raises $22 million to expand its logistics management business

Locus, an Indian startup that uses AI to help businesses map out their logistics, has raised $22 million in Series B funding to expand its operations in international markets.

The financing round for the four-year-old startup was led by Falcon Edge Capital and Tiger Global. Existing investors Exfinity Venture Partners and Blume Ventures also participated in the round. The startup has raised $29 million to date, Nishith Rastogi, co-founder and CEO of Locus, told TechCrunch in an interview.

Locus works with companies that operate in FMCG, logistics and e-commerce spaces. Some of its clients include Tata Group companies, Myntra, BigBasket, Lenskart and Bluedart. It helps these clients automate their logistics workload — tasks such as planning, organizing, transporting and tracking of inventories, and finding the best path to reach a destination — that have traditionally required intensive human labor.

“Say a Lenskart representative is visiting a house or an office to offer an eye checkup, and suddenly two more people there are interested in getting their eyes checked. The representative could attend these two new potential clients, or wrap things up with the first client and take care of his or her next appointment,” said Rastogi.

Locus looks at a client’s past data, identifies patterns and automates these kind of decisions on a large scale. In an example shared earlier with TechCrunch, Rastogi talked about how Locus had built a scanner for e-commerce companies for measuring products.

Rastogi said he will use the fresh capital to develop products and expand Locus in Southeast Asian and North American markets. The startup says half of its 110-person workforce is outside of India. Half of the IP it has built and the revenue it generates comes from its team outside of India.

He said the startup has spent the recent quarters studying these international markets, and has secured some anchor clients to expand the business. Locus is operationally profitable already and any additional capital goes into expanding its business, he added.

The logistics market in India has long been riddled with challenges. A growing number of startups, including BlackBuck — which raised $150 million last week — have emerged in recent years to tackle these problems.

The new funding also illustrates Tiger Global’s new strategy for the Indian market. The VC fund, which has invested in B2C businesses Flipkart and Ola in India, has made a number of investments in B2B startups in recent months. Last month, it invested $90 million in agritech supply chain startup Ninjacart, and weeks later, it gave cloud-based solutions provider Zenoti $50 million. It also participated in customer marketing service ClearTap’s $26 million round.

May
08
2019
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Sumo Logic announces $110M Series G investment on valuation over $1B

Sumo Logic, a cloud data analytics and log analysis company, announced a $110 million Series G investment today. The company indicated that its valuation was “north of a billion dollars,” but wouldn’t give an exact figure.

Today’s round was led by Battery Ventures with participation from new investors Tiger Global Management and Franklin Templeton. Other unnamed existing investors also participated, according to the company. Today’s investment brings the total raised to $345 million.

When we spoke to Sumo Logic CEO Ramin Sayar at the time of its $75 million Series F in 2017, he indicated the company was on its way to becoming a public company. While that hasn’t happened yet, he says it is still the goal for the company, and investors wanted in on that before it happened.

“We don’t need to raise capital. We had plenty of capital already, but when you bring on crossover investors and others in this stage of a company, they have minimum check sizes and they have a lot of appetite to help you as you get ready to address a lot of the challenges and opportunities as you become a public company,” he said.

He says the company will be investing the money in continuing to develop the platform, whether that’s through acquisitions, which of course the money would help with, or through the company’s own engineering efforts.

The IPO idea remains a goal, but Sayar was not willing or able to commit to when that might happen. The company clearly has plenty of runway now to last for quite some time.

“We could go out now if we wanted to, but we made a decision that that’s not what we’re going to do, and we’re going to continue to double down and invest, and therefore bring some more capital in to give us more optionality for strategic tuck-ins and product IP expansion, international expansion — and then look to the public markets [after] we do that,” he said.

Dharmesh Thakker, general partner at investor Battery Ventures, says his firm likes Sumo Logic’s approach and sees a big opportunity ahead with this investment. “We have been tracking the Sumo Logic team for some time, and admire the company’s early understanding of the massive cloud-native opportunity and the rise of new, modern application architectures,” he said in a statement.

The company crossed the $100 million revenue mark last year and has 2,000 customers, including Airbnb, Anheuser-Busch and Samsung. It competes with companies like Splunk, Scalyr and Loggly.

Jun
02
2015
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Brazil’s Nubank Raises $30M Led By Tiger To Build Out Its Mobile-Based Credit Card Business

nubank Brazil is one of the world’s fastest growing mobile markets, with 90 million smartphones in circulation among a population of about 200 million, and today a fin-tech company that has focused on catering to that growing group of users has raised a significant round of funding. Nubank, which has developed a platinum Master Card credit service that you apply for and manage using only… Read More

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