Pentera Raises $60M to Enhance Security Team Training

Pentera Secures $60 Million to Enhance Automated Security Validation

Effective cybersecurity relies heavily on robust security operations teams. A startup focused on bolstering their capabilities, Pentera, has announced a significant funding round following substantial growth.

Series D Funding and Company Valuation

Pentera, the developer of a system that simulates network attacks to evaluate software and human responses, has secured $60 million in Series D funding. This investment values the Boston and Tel Aviv-based company at over $1 billion.

Strategic Use of Funds

According to CEO Amitai Ratzon, the newly acquired capital will be allocated towards mergers and acquisitions, as well as continued product development.

Automated Security Validation Explained

Pentera’s name is derived from “pen testing,” an abbreviation for penetration testing – programs designed to train security teams on potential attack methods. The company has developed this concept into a sophisticated product officially termed “automated security validation.”

“Our technology allows enterprises and governments to launch a large-scale attack against their own systems with a single click, and then safely retract it with another,” Ratzon explained. “Crucially, this is all conducted in a secure manner.”

Discreet Simulations

Unlike a traditional fire drill, Pentera’s simulated attacks remain undetected by the majority of the organization, mirroring the stealth often employed in real-world security breaches.

Impressive Growth Metrics

This funding round follows a period of significant growth for Pentera, with a 200% increase in customers – now totaling 1,100 organizations – and a 300% rise in Annual Recurring Revenue (ARR) over the past four years. This demonstrates a strong market demand for its solutions.

Investment Details

Evolution Equity Partners led the funding round, with participation from Farallon Capital. Previously known as Pcysys before rebranding in 2021, the company had already raised $190 million through a combination of primary and secondary equity, as reported by PitchBook. Existing investors include Insight, K1, and Blackstone.

The Rise of Automation in Cybersecurity

Pentera’s success is occurring within a broader trend of increasing automation in the cybersecurity landscape.

Impact of Artificial Intelligence

The cybersecurity field has been significantly impacted by the emergence of Artificial Intelligence (AI). AI is utilized by both malicious actors to compromise systems and by security tools to detect and prevent attacks.

Pentera’s AI Integration

Pentera incorporates AI into its platform. When initiating attacks, it focuses on specific vulnerabilities and identifies potentially exploitable areas within an organization’s network.

Alert Prioritization and Remediation

These attacks can generate a substantial number of alerts – potentially up to 10,000, according to Ratzon. Pentera streamlines this process by automatically reducing the alerts to a manageable number of six to eight root causes or exploitable vulnerabilities.

The platform then offers recommendations for remediation, leaving the implementation to the security teams.

Industry Recognition

“Pentera has redefined enterprise security testing and validation practices,” stated Richard Seewald, managing partner at Evolution Equity Partners. “Their exceptional growth, strong enterprise adoption, and category-defining innovation position them as the leader in Automated Security Validation. We are proud to support their continued global expansion and technological advancements.”

Competitive Landscape

Pentera is not alone in providing penetration testing tools. Cymulate, valued at approximately $500 million in a 2022 funding round, represents a direct competitor offering automated simulations.