Piggy bank in a mask with some coins in front of it, on a background of blurry lights - Funding Concept
PHOTO: Unsplash/Konstantin Evdokimov

Data-driven cloud security platform Lacework announced it had raised $1.3 billion in growth funding, bringing the company to an $8.3 billion valuation.

Founded on the idea that cloud security is fundamentally a data driven platform, Lacework believes it's been able to enhance organizations' cloud security by rethinking the traditional approach to security. Lacework's Cloud Security Platform enables organizations to automate their cloud security by understanding cloud changes at scale, without requiring manual intervention by security teams. It's this aspect that the company sees as leading to safer innovation at greater speeds - along with its clients.

"As organizations of all sizes continue building applications in the cloud, more critical data will be exposed and exploited. Lacework is building an impressive business by offering companies a transformative approach to securing their data in the cloud," said Morgan Stanley Head of Counterpoint, Dennis Lynch. "That approach is already driving 3x year-over-year revenue growth, and we believe there is still substantial opportunity ahead. We're excited to partner with Lacework as it pursues its strategy for long-term sustainable growth."

Lacework is now able to collect, analyze and correlate data across organizations' AWS, Azure, GCP and Kubernetes environments - narrowing that data down to meaningful security events. The San Jose-based company's cloud security platform also includes workflow integrations with Kubernetes, Terraform and Jira, along with growing partnerships with Snowflake, New Relic, Amazon Web Services, Google Cloud Platform, Microsoft Azure and growing channel partnerships with companies including Presidio, EVOTEK, Guidepoint, GlobalDots, and Katana. It's this long list of partners that Lacework sees as key to helping it drive outsized momentum. The company also says its current partners drive more than 60 percent of its new business.

Lacework says it will use its recent funding to further its investment in innovation - working to expand the company's total addressable market, and pursuing additional strategic acquisitions like its recently announced Soluble transaction. The company sees that recent transaction as an enhancement of its already widely used Lacework Cloud Security Platform, enabling organizations to integrate security practices earlier in their software delivery process. Its that type of automation potential clients see as a dire issue today.

"With enterprises shifting faster to cloud-native architectures, the cybersecurity industry is in dire need of increased automation, higher signal-to-noise, and fewer point solutions. This is a daunting task, and it requires a platform that can scale with the enormous growth of data flowing through an organization's cloud infrastructure," said Franklin Templeton Vice President Matt Cioppa. "To this end, Lacework has built something that's powerful and unique, positioning it to be one of this generation's most important cybersecurity companies."

Last week's fundraising announcement marks the largest funding round in the history of the security industry, according to Lacework. It now looks to continue rapid global expansion amidst its more than $8billion valuation.