Noname Security Raises $60M to Secure APIs

Noname Security Secures $60 Million in Series B Funding

Noname Security, a company specializing in enterprise API security, has successfully completed a $60 million Series B funding round. This achievement follows closely on the heels of their $25 million Series A funding, which was finalized just six months prior.

Investment Details and Company Growth

Insight Partners spearheaded the current funding round, with significant participation from Next47, Forgepoint, and The Syndicate Group (TSG). This brings the total funding raised by Noname Security to $85 million since the company’s initial emergence from stealth mode in December 2020.

Currently employing a team of 70 individuals, with offices located in both Palo Alto and Tel Aviv, Noname Security attributes its rapid fundraising success to the increased reliance on APIs spurred by the pandemic.

The Rising Threat of API Security Incidents

The proliferation of APIs has, unfortunately, correlated with a rise in API security breaches. Recent examples highlight this vulnerability; an API flaw at Experian resulted in the exposure of credit scores for a vast number of Americans. Similarly, a vulnerability in Peloton’s API allowed unauthorized access to users’ private account information.

Other prominent platforms, including Facebook, LinkedIn, Echelon, and Clubhouse, have also been targeted by scraping attacks that exploit API access to gather user data.

Noname Security's Mission

“The demand for robust API security was significantly amplified during the pandemic,” explains Oz Golan, CEO of Noname Security, in a statement to TechCrunch. “Our focus is on empowering organizations to utilize APIs securely and to eradicate existing API vulnerabilities. We aim to prevent incidents similar to the Experian breach.”

A Holistic Approach to API Security

Noname Security offers a comprehensive security platform that leverages AI and machine learning. This technology enables enterprises to identify and secure both managed and unmanaged APIs – those exposed by the organization, consumed by the organization, and those used internally.

The company emphasizes that many API vulnerabilities remain undetected for extended periods, potentially granting unrestricted access to an organization’s critical systems.

“Often, even experienced security professionals are unaware of the extent to which their systems are exposed,” Golan notes.

Expanding Reach and Capabilities

Since its launch six months ago, the startup has established partnerships with 40 technology, reseller, and channel partners. Furthermore, they report having “hundreds” of enterprise customers currently utilizing or evaluating their platform.

“Given the substantial traction we’ve experienced, we are committed to accelerating our growth – specifically by expanding our sales, marketing, customer success, and research & development teams,” states Golan, who previously held a director of engineering position at NSO Group.

Industry Validation

Thomas Krane, principal at Insight Partners, commented on the investment, stating: “The increasing volume of APIs and the growing complexity of modern applications have created new cybersecurity challenges. Noname Security entered the market at an opportune moment with a cutting-edge technology that is already delivering significant value to global customers.”

A Competitive Landscape

Investment in API security is currently experiencing a surge. In the past month alone, 42Crunch, based in London, secured $17 million in Series A funding, while Salt Security, located in California, closed a $70 million Series C round – bringing their total funding over the past year to $120 million.