Lacework secures largest funding raise in security industry history

Lacework, the data-driven security platform for the cloud, recently 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, 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.

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 fuel product innovation that expands the company’s total addressable market and pursue additional strategic acquisitions, like the recently announced Soluble transaction. The company will also scale go-to-market strategies, growing the Lacework workforce and the company’s presence globally to better serve customers.

The ecosystem surrounding Lacework, including IaC, CI/CD, and workflow integrations such as Kubernetes, Terraform, and Jira, strong and growing alliances with partners like Snowflake, New Relic, Amazon Web Services, Google Cloud Platform (GCP), Microsoft Azure and growing channel partnerships with companies including Presidio, EVOTEK, Guidepoint, GlobalDots, and Katana1 are continuing to drive outsized momentum. Today partners influence more than 60 percent of the company’s new business and are helping to scale go-to-market at an ever-increasing pace.

“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).

“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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