cycode Raises $56M Series B to Secure Software Supply Chains
Cycode Secures $56 Million in Series B Funding
Cycode, a company specializing in the security of DevOps pipelines and software supply chains, has announced the successful completion of a $56 million Series B funding round. This investment was spearheaded by Insight Partners.
YL Ventures, the initial investor in Cycode’s seed round, also contributed to this latest funding effort. The total capital raised by the company now reaches $81 million, incorporating a previously announced $20 million Series A round from approximately six months ago.
Significant Growth and Market Demand
The company positions this funding as a substantial achievement within the application security sector. This claim is supported by demonstrable growth, with the company’s Annual Recurring Revenue (ARR) experiencing a sevenfold increase during the first three quarters of the current year.
According to Lior Levy, co-founder and CEO of Cycode, the company’s expansion is fueled by heightened awareness surrounding supply chain attacks and security breaches, such as the widely publicized SolarWinds incident.
Expanding Scope and the Rise of Infrastructure as Code
Furthermore, President Biden’s executive order aimed at bolstering U.S. cybersecurity, with a specific focus on supply chain vulnerabilities, has contributed to this increased attention. Initially concentrating on securing application source code, Cycode has broadened its capabilities to encompass the growing trend of “infrastructure as code.”
“Code now functions as the core operational component for many organizations,” Levy explained. “The automation of the software development lifecycle necessitates a comprehensive security approach, which is precisely what we provide.”
Diverse Customer Base
Cycode’s clientele spans a wide range, from Fortune 100 companies to startups with fewer than 100 employees.
“A common thread unites them all: they all rely on software, either as their primary business or as a critical component of their operations,” Levy stated. “Consequently, virtually any organization is a potential customer.”
Introducing the Knowledge Graph
Recently, Cycode introduced its Knowledge Graph, a tool designed to integrate a company’s various DevOps tools and infrastructure services. This integration creates a detailed map of potential attack surfaces.
Levy highlighted that this capability allows Cycode to adopt an attacker’s mindset, identifying vulnerabilities throughout the entire software pipeline, rather than focusing solely on individual components.
Insight Partners’ Perspective
Jon Rosenbaum, principal at Insight Partners, emphasized the inherent vulnerabilities within software supply chains without robust security measures.
“Cycode’s leadership in securing DevOps pipelines effectively integrates with developers’ workflows while providing Chief Information Security Officers (CISOs) with confidence,” Rosenbaum said. “Demand for Cycode’s solutions is consistently growing, and we are pleased to support the company as it invests in research and development and expands its market reach.”
Future Growth and Expansion
Currently employing just under 60 individuals, Cycode intends to double its workforce by mid-next year. This expansion will prioritize growth in the sales and marketing teams within the U.S.