I am excited to announce today that we have raised an additional $350M at a valuation of $2.5B, more than doubling our valuation and bringing our cumulative funding since inception to ~$750M. This funding reflects investor conviction in our ability to be the dominant cloud and container security platform, and brings us closer to our vision of helping every organization to confidently run modern, cloud-native applications.
We were founded on the belief that the shift towards microservices-based cloud applications and DevOps methodologies have a profound impact on how you build secure, reliable software.
Sysdig started with two ground-breaking open source projects as our core foundation – Falco, the first and only threat detection engine for container and cloud, and open-source Sysdig for incident response using deep data and rich context. Together, Sysdig and Falco have become industry standards for modern runtime security – spanning threat and anomaly detection and incident response in containers and cloud.
We believed, however, that the only comprehensive way to protect modern cloud applications is to complement runtime security with source security – embedding security into the software development and deployment lifecycle. To this end, we expanded the Sysdig Platform beyond its runtime security and monitoring roots. Over the last 3 years, we added vulnerability management, cloud security posture management (“CSPM”), IAC security and cloud infrastructure entitlements management (“CIEM”) capabilities to our platform.
Our platform has evolved into one with the most comprehensive set of capabilities for cloud security spanning the entire source-to-production lifecycle. What we are passionate about is how we simplify our customers’ experience through a few core principles that inform our product philosophy:
1. Unmatched visibility to avoid blind spots. Leveraging agentless as well as lightweight agent-based instrumentation to extract deep data and rich context delivers unprecedented visibility across workloads and infrastructure.
2. Consolidated risk assessment across use-cases eliminates multiple point products. We have built a platform with a unified event store and unified policies so as to consolidate risks spanning vulnerabilities, misconfigurations, compliance failures and runtime threats and anomalies. This provides security teams with a holistic view of how to manage all the risks impacting their applications and infrastructure, while lowering costs and improving productivity for security and DevOps teams.
3. Tightly coupled source-to-production cloud security to eliminate alert fatigue, prioritize findings and guide remediation. A deep understanding of runtime context allows us to prioritize which vulnerabilities and misconfigurations have the highest risk of being exploited in production. We go further in addressing production misconfigurations by identifying and recommending IAC changes at the source. In a similar vein, runtime controls can compensate for vulnerabilities that are not yet fixed at source. Ultimately, leveraging our rich runtime context allows us to address the pain felt by developers and security teams of feeling inundated with a barrage of unfiltered events.
This round of funding is a reflection of investor conviction in our vision and in the momentum that we see in our business as we execute against this vision.
- Our security annualized revenue run-rate (ARR) has more than tripled over the last year.
- Our customer base has grown to nearly 700 customers, spanning large enterprises, government agencies and mid-sized companies. The average annualized spend of our top 50 customers is more than $800K, illustrating the scale of deployment within large global enterprises.
- Our net dollar retention as of the most recent fiscal quarter is 149%, illustrating the pace at which customers are expanding the footprint of their modern cloud applications.
- Most customers deploy our platform for multiple use-cases as we have innovated rapidly to expand the functionality of our platform. Earlier this year, we added the ability to manage privileged cloud access to our platform. We also acquired Apolicy, expanding the Sysdig platform to include infrastructure as code (IaC) security.
- The open source movement that we started continues to thrive as Falco downloads increased to 37 million – an increase of 335% since it became an incubating project in the cloud native computing foundation (CNCF) in January 2020.
Our aspiration continues to be to build the next great security company. We aspire to arm DevOps and security teams with tools to confidently run modern cloud-native applications – to innovate faster while being more secure. This funding round will further accelerate our investment in pursuing our aspiration. We are excited about the journey ahead.