Orca Security Raises $210M Series C, Reaches Unicorn Status

Orca Security Secures $210 Million in Series C Funding

Orca Security, a cybersecurity firm originating from Israel, has announced the successful completion of a $210 million Series C funding round. This investment brings the company’s valuation to $1.2 billion.

Round Details and Investors

The funding round was spearheaded by CapitalG, Alphabet’s independent growth fund, alongside Redpoint Ventures. Participation also came from existing investors including GGV Capital, ICONIQ Growth, and the Silicon Valley CISO Investment syndicate.

Notably, YL Ventures, a key investor in Orca’s seed funding and previous rounds, did not participate in this current round. It is worth mentioning that YL Ventures recently divested its ownership in Axonius following that company’s achievement of unicorn status.

Rapid Funding Growth

This announcement follows closely on the heels of Orca’s $55 million Series B round in December and a $20.5 million Series A round in May. This represents a significant acceleration in funding within a relatively short timeframe, a trend increasingly observed in the current market.

Company Growth and Strategy

According to Orca co-founder and CEO Avi Shua, the company is experiencing substantial growth and aims to leverage this momentum with the new capital.

Impressive Performance and Customer Base

Orca surpassed its already ambitious forecasts from the previous year by over 50%. The company’s client roster includes prominent organizations such as Robinhood, Databricks, Unity, Live Oak Bank, Lemonade, and BeyondTrust.

Expansion Plans

“We are growing at an unprecedented speed,” Shua stated. “We’ve nearly doubled our team in the last year and plan to continue this expansion.” The funding will be allocated to accelerating product development, enhancing post-breach capabilities, and bolstering identity access management features, as well as expanding go-to-market efforts.

Addressing Cloud Security Challenges

Shua contends that many existing cloud security solutions are inadequate for the current landscape.

Limitations of Current Tools

He argues that many tools, reliant on metadata, only identify a limited portion of potential risks. Agent-based solutions often require lengthy deployment periods and may not provide comprehensive coverage of an organization’s entire cloud infrastructure.

Orca’s Unique Approach: SideScanning

Orca Security differentiates itself by offering complete coverage of cloud assets and prioritizing risks effectively. This is achieved through its proprietary “SideScanning” technology, which maps an organization’s entire cloud environment and file systems.

“Most tools focus on individual risk factors, overlooking the broader context. The risk isn’t solely about the vulnerability of a lock, but also its location and the value of what it protects. We shift the focus to the overall business impact and exposure.”

Competitive Landscape and Industry Dynamics

Orca Security has not shied away from addressing competition within the cybersecurity sector.

Dispute with Palo Alto Networks

Last year, Palo Alto Networks issued a cease-and-desist letter to Orca Security, objecting to comparative marketing materials. Shua responded by challenging the letter and advocating for fair competition. “Suppressing competition is counterproductive, potentially illegal, and ultimately harmful to the industry.”

Positive Market Outlook

GGV Capital managing partner Glenn Solomon believes Orca’s continued growth and data-driven insights will further refine its technology and enhance its value proposition.

“The innovative technology developed by Avi and Gil allows Orca to identify emerging risks and continuously improve its offerings. They are well-positioned to help DevOps and security teams maintain robust security practices.”

Strategic Investment and Future Outlook

Shua highlighted CapitalG’s strong belief in the cloud security space and their commitment to long-term investment.

Benefits of Association with Alphabet

The association with Alphabet, a major cloud provider, is expected to strengthen Orca’s relationships within the cloud ecosystem. CapitalG conducted thorough due diligence, including presenting Orca’s technology to Google’s security leadership.

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