Cequence Raises $60M Series C to Enhance API Security

Cequence Security Secures $60 Million in Series C Funding

Cequence Security, previously highlighted in February 2019 following a $17 million Series B funding round, initially focused on safeguarding business logic. The company has since redirected its efforts towards API security and has now announced a $60 million Series C investment.

Investment Details

Menlo Ventures spearheaded the latest funding round, with contributions from Icon Ventures, Telstra Ventures, and HarbourVest Partners. Existing investors, including Shasta Ventures, Dell Technologies Capital, and T-Mobile Ventures, also participated. To date, Cequence Security has raised a total of $100 million in funding.

Shift in Focus to API Vulnerabilities

According to CEO Larry Link, the company observed an increasing number of vulnerabilities stemming from APIs among its customer base. This prompted a strategic shift in the Cequence analytics engine to specifically identify these types of weaknesses.

“Our platform now automatically maps an organization’s entire API footprint. Without requiring instrumentation, we pinpoint vulnerabilities and subsequently detect and mitigate malicious activity targeting those API endpoints,” Link explained.

Analyzing API Activity

Cequence Security evaluates approximately 150 distinct data points to assess the legitimacy of activity. This comprehensive analysis is crucial for identifying potential threats.

“We initially examine individual requests, then analyze clusters of requests, and finally determine the underlying intent behind those requests,” Link stated. “This allows us to differentiate between legitimate traffic and malicious actions such as account takeovers, credential stuffing, or inventory manipulation.”

Significant Growth and Future Expansion

The company has experienced 2.5x growth over the past year, indicating substantial market demand. While specific revenue figures remain undisclosed, Link confirmed a “very healthy growth rate” and a “high ARR” for a business of this nature.

“This Series C funding is essential to capitalize on the significant opportunities ahead and accelerate our growth trajectory,” he added.

Workforce Expansion and Diversity

Currently employing just over 100 individuals, Cequence Security anticipates expanding its workforce to potentially 250 employees by the end of 2022, contingent on business performance.

The company has also prioritized workforce diversity, particularly following a transition to a partially remote work model. “We strongly believe that a diverse workforce provides valuable insights and fosters a stronger platform for growth,” Link emphasized.

“The flexibility to offer remote positions has enabled us to attract a higher quality and more diverse talent pool,” he continued.

Leadership and Experience

This venture marks Larry Link’s fifth startup endeavor. Prior to joining Cequence Security, he served as VP of Sales at Palo Alto Networks. He was brought on board by the founders to leverage his extensive industry experience and guide the company’s operations.