Abnormal Security has successfully raised $250 million in Series D financing, achieving a valuation of $5.1 billion. The company specializes in cloud email security, leveraging AI technology to protect against phishing, social engineering, and account takeovers.
Keep reading to explore the intricacies of Abnormal Security's fundraising journey and the investors backing this innovative platform.
What Is Abnormal Security?
Abnormal Security, founded by Sanjay Jeyakumar and Evan Reiser, is headquartered in San Francisco. The company specializes in enterprise email security, leveraging Behavioral AI to protect against phishing, social engineering, and account takeovers.
With a workforce of 501-1000 employees, Abnormal Security offers a platform that includes inbound email security, internal and external account takeover protection, and full SOC automation. The company has regional offices in Australia, Canada, Singapore, New Zealand, and the United Kingdom.
Abnormal Security's leadership team brings experience from top tech companies like Google, Twitter, and Amazon. The company supports a remote-first workplace, emphasizing innovation and precision in cybersecurity.
How Much Funding Has Abnormal Security Raised?
- Seed Round
- Amount Raised: Not specified
- Date: April 2018
- Lead Investors: Greylock
- Motivation Behind the Round: To start the company despite having no product or code at the time.
- Series A
- Amount Raised: $24 million
- Date: November 19, 2019
- Lead Investors: Greylock Partners
- Valuation at Round: $140 million
- Motivation Behind the Round: To launch Abnormal Security and make its cloud email security platform generally available.
- Series B
- Amount Raised: $50 million
- Date: November 18, 2020
- Lead Investors: Menlo Ventures, with participation from Greylock
- Valuation at Round: Over $500 million
- Motivation Behind the Round: To expand the team to 250 employees by the end of 2021 and scale the product.
Total Amount Raised: $74 million
Current Valuation: $5.1 billion
Key Investors
- Menlo Ventures
- Details: Menlo Ventures is a venture capital firm that invests in early-stage and growth-stage technology companies. Venky Ganesan, a partner at Menlo Ventures, joined the Abnormal Security board as part of their investment.
- Investment Focus Areas: Cybersecurity, enterprise software, consumer technology, healthcare technology
- Notable Investments: Uber, Roku, Warby Parker
- Greylock Partners
- Details: Greylock Partners is a venture capital firm with a long history of investing in enterprise and consumer software companies. They were early investors in Abnormal Security, participating in both the seed and Series B rounds.
- Investment Focus Areas: Enterprise software, consumer internet, healthcare technology
- Notable Investments: Facebook, LinkedIn, Airbnb
What's Next for Abnormal Security?
Abnormal Security stands at the cusp of significant growth opportunities. With its AI-based threat detection system, the company can expand its customer base by integrating into more enterprise environments. The potential to venture beyond email security into areas like data loss protection further amplifies its market reach. The email security market alone, with financial crimes from email attacks accounting for $1.8 billion in losses in 2019, presents a substantial opportunity.
Future fundraising seems promising, given the rapid growth and investor interest. The successful Series B round led by Menlo Ventures and Greylock Partners indicates strong backing, making additional rounds likely as the company scales. However, challenges such as competing with established firms like Proofpoint and Mimecast, and keeping pace with evolving cyber threats, remain. Maintaining the quality of their solutions while scaling rapidly will be crucial for sustained success.
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