Digital security provider CrowdStrike, which recently helped the Democratic National Committee respond to its hacking, has raised $100 million in new capital, bringing its total fundraising to $256 million and value close to $1 billion. The Irvine, California-based tech company, founded by two former McAfee execs in 2011, provides SaaS endpoint protection, threat intelligence and incident response through its cloud-based Falcon platform. CrowdStrike now has more than 650 employees worldwide. The company’s subscriptions have grown 476 percent in the last year as cybersecurity becomes a growing concern.
The New York Times reports “there were more than 400 investments in the sector” in 2016, “up about 6 percent from 2015, totaling nearly $3.5 billion, according to data from CB Insights.” Four security startups each raised $100 million in 2016.
The global increase in cyberattacks, including the recent rash of ransomware incidents, has meant more work for companies such as CrowdStrike.
The company “has argued that relying on systems that run on cloud computing rather than those installed on customers’ devices means smarter defenses and faster responses.” CrowdStrike offers “a Salesforce-like modular approach to systems” with “plenty of options for customers.”
“We’re in the cloud, looking at a lot of endpoints,” said co-founder and chief exec George Kurtz. “It helps us prevent an incident from becoming a breach.”
Word-of-mouth and working with the DNC has helped raise the company’s profile. VC firm Accel led the new round of funding. Other investors include “CapitalG, an arm of Google’s parent company, and Warburg Pincus, the private equity firm,” notes NYT, “as well as newcomers like March Capital Partners and Telstra, a telecommunications provider in Australia.”