Lacework, the data-driven security platform for the cloud, has announced it has raised $1.3 billion in growth funding at a valuation of $8.3 billion. 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, according to a statement.
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 will use this funding to extend its lead in the cloud security market by fueling product innovation that expands the company’s total addressable market and pursuing additional strategic acquisitions.
“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.
“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.
“Our growth over the last 36 months reflects the pain many businesses endure as they attempt to navigate the cloud using security products that simply aren’t designed for it. This investment, and the partnership of these long-term investors, will help us realize Lacework’s promise of becoming the most trusted cloud security platform,” said David Hatfield and Jay Parikh, Co-CEOs, Lacework.
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