Illumio Raises $225M Series F Led by Thoma Bravo

Illumio Secures $225 Million in Series F Funding

Illumio, a company identifying as a zero trust security leader, has successfully completed a $225 million Series F funding round. This valuation places the company at $2.75 billion.

Investment Details

Thoma Bravo spearheaded the investment, having recently finalized the acquisition of Proofpoint, a cybersecurity firm, for $12.3 billion. Additional support for this round came from Franklin Templeton, Hamilton Lane, and Blue Owl Capital.

IPO Speculation

This funding arrives over two years following Illumio’s Series E round, which generated $65 million and sparked discussions regarding a potential Initial Public Offering (IPO). Founder Andrew Rubin indicated to TechCrunch that while an IPO isn’t immediately planned, it could be a future consideration if the company continues to deliver success for its clientele.

Timing and Market Conditions

The timing of this funding is particularly noteworthy. A surge in impactful cyberattacks demonstrates the limitations of conventional cybersecurity strategies.

The SolarWinds hack in 2020 highlighted vulnerabilities.
The recent Colonial Pipeline attack further underscored these concerns.

Furthermore, the investment coincides with a recent executive order from President Joe Biden, directing federal agencies to prioritize and implement robust cybersecurity measures, including a zero trust architecture.

White House Initiatives

Andrew Rubin notes that Anne Neuberger, Deputy National Security Advisor for Cybersecurity, recently issued guidance to corporate America acknowledging a “ransomware pandemic.” This memo outlined six critical actions, with network segmentation being a key recommendation.

Illumio’s Core Technology: Microsegmentation

Illumio specializes in safeguarding data centers and cloud environments through microsegmentation. This approach aims to simplify the management and prevention of security breaches.

Should a breach occur, microsegmentation also assists in containing its impact. Illumio champions a zero trust security model, which assumes no inherent trust for any entity, whether internal or external to the network perimeter.

The Shift to Zero Trust

Rubin emphasizes that cyber incidents are no longer confined to the digital realm. He states that relying solely on detection methods for security is insufficient, leading to the increasing adoption of zero trust as a fundamental security principle.

Future Plans and Growth

Illumio intends to allocate the new funding towards significant investments in several key areas.

Expansion of field operations.
Strengthening its channel partner network.
Continued innovation in engineering and product development.

Customer Base and Expansion

Founded in 2013 and headquartered in California, Illumio reports that over 10% of Fortune 100 companies utilize its technology. These include prominent organizations like Morgan Stanley, BNP Paribas SA, and Salesforce.

The company experienced 100% international growth during the pandemic and is actively diversifying its customer base across various industries.