Menlo Security Raises $100M Series E at $800M Valuation

Menlo Security, a company specializing in the prevention of malware and phishing attacks, today revealed a new $100 million Series E funding round, resulting in an $800 million company valuation. Vista Equity Partners spearheaded the investment, with contributions from Neuberger Berman, General Catalyst, JP Morgan, and other current investors. To date, the company’s total funding reaches approximately $250 million.

According to CEO and co-founder Amir Ben-Efraim, the platform’s capabilities have broadened over time, but the company maintains a primary focus on web and email as the most significant avenues for attacks against its customers. “Our efforts have been centered on achieving improved security results when addressing the primary threats posed by web and email. These channels are how the majority of the professional world conducts its work, and they consistently remain susceptible to the newest forms of attack,” Ben-Efraim stated.

He explained that to safeguard these vulnerable areas, the company developed a technology known as web isolation, which effectively separates the user from potentially harmful content and delivers only secure visual representations. “When a user clicks a link or interacts with a website, they are guaranteed to receive safe visuals, free of malware, regardless of the destination,” Ben-Efraim clarified.

Ben-Efraim expressed his pride in building the company from its inception to its current $800 million valuation. While an initial public offering (IPO) is not currently under consideration, he anticipates utilizing the substantial new capital to foster continued growth as an independent entity, with a potential IPO approximately three years in the future.

Driven by increased business activity and the recent funding, the company, currently employing 270 individuals – including around 70 who joined this year – aims to maintain its current growth rate throughout 2021. He also noted that the security firm is closely monitoring ongoing social justice movements.

“This is a crucial topic for both myself as CEO and the entire management team. We are actively focused on achieving greater diversification within our organization. Our goal is for Menlo Security to become a more diverse company,” Ben-Efraim said. He believes this can be accomplished by prioritizing recruitment strategies that allow access to a broader pool of potential candidates.

Although he refrained from disclosing specific revenue figures, he did mention that the business is experiencing rapid expansion, with net new sales increasing by 155% compared to the previous year, despite the pandemic. “This momentum is largely driven by customers in critical infrastructure, financial services, and government sectors, who are witnessing a rise in attacks linked to COVID-19 and are recognizing security as a vital area for increased investment. Consequently, despite the broader economic challenges, 2020 has presented an unexpected opportunity for growth,” he explained.