Lacework has announced it has raised $1.3 billion in growth funding at a valuation of $8.3 billion. With this capital, which is the largest funding round in security industry history.
“As organizations of all sizes continue building applications in the cloud, more critical data will be exposed and exploited. Lacework is building an impressive business by offering companies a transformative approach to securing their data in the cloud. That approach is already driving 3x year-over-year revenue growth, and we believe there is still substantial opportunity ahead. We’re excited to partner with Lacework as it pursues its strategy for long-term sustainable growth,” said Dennis Lynch, Head of Counterpoint Global (Morgan Stanley).
“With enterprises shifting faster to cloud-native architectures, the cybersecurity industry is in dire need of increased automation, higher signal-to-noise, and fewer point solutions. This is a daunting task, and it requires a platform that can scale with the enormous growth of data flowing through an organization’s cloud infrastructure. To this end, Lacework has built something that’s powerful and unique, positioning it to be one of this generation’s most important cybersecurity companies,” said Matt Cioppa, Vice President, Franklin Templeton.
This Series D round was led by existing investors Sutter Hill Ventures, Altimeter Capital, D1 Capital Partners, and Tiger Global Management with participation from new investors including Counterpoint Global (Morgan Stanley), Durable Capital, Franklin Templeton, General Catalyst, and XN. Coatue, Dragoneer, Liberty Global Ventures, and Snowflake Ventures, all existing investors, also participated.
“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, for the past 36 months Lacework has repeatedly outperformed its competitors and consistently exceeded its targets across a wide range of very ambitious metrics. We continue to believe this is one of our most promising portfolio companies,” said Mike Speiser, Managing Director, Sutter Hill Ventures.
The ecosystem surrounding Lacework, including IaC, CI/CD, and workflow integrations such as Kubernetes, Terraform, and Jira, and alliances with partners like Snowflake, New Relic, Amazon Web Services, Google Cloud Platform (GCP), Microsoft Azure and channel partnerships with companies including Presidio, EVOTEK, Guidepoint, GlobalDots, and Katana1 are continuing to drive outsized momentum.
“Lacework’s judicious application of AI and ML to generate and surface the most critical events is what sets the platform apart,” said Bren Biggs, VP of DevOps and Cybersecurity at Lacework customer, Hypergiant.
“Business and technology leaders understand that security and governance are important issues, but they continue to struggle with solutions that can’t keep up with the enormous scale, IT complexity, evolving technologies and constantly changing hybrid cloud landscape. There is a growing need for organizations like Lacework that look at cloud security through a new lens and adapt data-driven technologies that enable security efficacy and delivery efficiency,” said Frank Dickson, IDC Program Vice President, Security & Trust.