Temasek Invests $550M in Orca Security - Expansion Plans

Orca Security Secures Significant Funding Extension

Orca Security, a security firm based in Israel specializing in agent-less protection for cloud assets, has successfully obtained a $550 million extension to its Series C funding round, which was initially completed just seven months prior.

Valuation Increase and Lead Investors

The original $210 million Series C round resulted in a company valuation exceeding $1 billion. This latest investment elevates the valuation by 50%, reaching $1.8 billion, as stated by Avi Shua, the company’s co-founder and CEO, in an interview with TechCrunch.

Temasek spearheaded this funding round, with participation from strategic investors including SAIC and Splunk Ventures. The initial Series C was guided by CapitalG and featured contributions from Redpoint Ventures, GGV, ICONIQ Capital, Lone Pine Capital, Stripes, Adams Street Partners, Willoughby Capital, and Harmony Partners.

Rapid Growth and Platform Development

This extension aligns with Orca Security’s pattern of quickly securing funding over the past year. Last December saw a $55 million Series B raise, following a $20.5 million Series A round in May.

Following the initial Series C funding, the company concentrated on developing a new platform designed to streamline security deployment to the cloud, reducing the timeframe from months to mere minutes, according to Shua.

Cloud Risk Assessment Capabilities

“Think of it as an MRI for the cloud,” Shua explained. “Upon connection to a cloud environment, a complete overview of potential risks is immediately available, without causing any disruption.”

Increased Cloud Adoption and Revenue Growth

The accelerated shift towards digital operations over the last two years has compelled organizations to prioritize rapid feature delivery. This has spurred increased cloud adoption and demand for robust security solutions. For Orca Security, this trend has resulted in substantial growth, with revenue increasing by 800%.

The company currently employs over 200 individuals.

Strategic Partnerships and Funding Utilization

Following the closure of the Series C round, Shua received expressions of interest from prospective investors. He identified Temasek, Splunk, and SAIC as partners capable of accelerating the company’s progress.

“While we weren’t in urgent need of capital, we aimed to strengthen our position to capitalize on our existing growth trajectory,” he stated.

The newly acquired funds will be allocated to three key areas: enhancing engineering capabilities to deliver expanded functionality, broadening its global presence, and bolstering go-to-market strategies.

New Leadership and Global Expansion

To support its global expansion and marketing efforts, Orca Security announced the appointment of Meghan Marks as its new Chief Marketing Officer. Marks previously held the CMO position at Palo Alto Network’s Prisma Cloud business unit.

Currently operating in over 15 countries, Orca Security has recently launched localized versions of its website in German, French, Chinese, and Japanese.

The company is also expanding its footprint in the U.K. with the establishment of a new office and R&D center in London, intending to employ approximately two dozen individuals by year-end. Further expansion is planned across the EMEA and APAC regions.

Future Outlook and Market Potential

Shua anticipates continued rapid growth in the cloud sector and forecasts cloud security to become a trillion-dollar market within the next five years.

“Orca Security is well-positioned to lead this market, driven by our unique and proprietary technology,” he added. “The cyber landscape presents unique challenges; failures are often quickly rectified, making control more complex. This dynamic fuels the growth of the cyber security market, and our solutions are designed to safeguard digital environments.”