How Much Did Expel Raise? Funding & Key Investors

Expel has successfully raised funds through multiple rounds, with the latest being a Series E closed on October 3, 2022. The company is backed by 12 investors, including Battery Ventures and Scale Venture Partners.

Keep reading to explore the intricacies of Expel's fundraising journey and the investors backing this innovative platform.

What Is Expel?

Expel, founded on May 5, 2016, is a security operations provider based in Herndon, Virginia. The company specializes in managed detection and response, remediation, phishing support, and threat hunting.

Expel was established by Dave Merkel, Justin Bajko, and Yanek Korff. The company leverages its platform, Expel Workbench™, to offer 24x7 monitoring and protection, ensuring transparency and quick threat resolution.

With a workforce of 501-1000 employees, Expel continues to address cybersecurity challenges by optimizing existing security tools and providing comprehensive coverage.

How Much Funding Has Expel Raised?

1. Series A
   • Amount Raised: $7.5M
   • Date: September 2016
   • Lead Investors: Paladin Capital Group
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To establish the company and develop its initial product offerings.
2. Series B
   • Amount Raised: $20M
   • Date: April 2018
   • Lead Investors: Scale Venture Partners
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand the team and enhance the platform's capabilities.
3. Series C
   • Amount Raised: $40M
   • Date: June 2019
   • Lead Investors: Index Ventures
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To scale operations and increase market penetration.
4. Series D
   • Amount Raised: $50M
   • Date: May 2020
   • Lead Investors: CapitalG
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To support growth and scaling efforts.
5. Series E (First Round)
   • Amount Raised: $140.3M
   • Date: November 2021
   • Lead Investors: CapitalG, Paladin Capital Group
   • Valuation at Round: Over $1 billion
   • Motivation Behind the Round: To scale the platform, improve automation, and expand internationally.
6. Series E (Second Round)
   • Amount Raised: $31M
   • Date: October 2022
   • Lead Investors: CapitalG, Paladin Capital Group
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To further enhance product development and market reach.

Total Amount Raised: $288.8M. Current Valuation: Over $1 billion.

Key Investors

• CapitalG
  • Details: CapitalG is Alphabet's independent growth fund, focusing on late-stage growth companies. Gene Frantz, a general partner at CapitalG, is a board member at Expel.
  • Investment Focus Areas: Consumer products and services, enterprise tech, cybersecurity.
  • Notable Investments: Airbnb, Stripe, Lyft.
• Paladin Capital Group
  • Details: Paladin Capital Group is a multi-stage investor with a focus on cybersecurity and digital infrastructure resilience. Mourad Yesayan, managing director at Paladin Capital Group, has expressed strong support for Expel.
  • Investment Focus Areas: Cybersecurity, advanced technologies, digital infrastructure.
  • Notable Investments: Authentic8, Cloud Constellation, Digital Shadows.
• Index Ventures
  • Details: Index Ventures is a global venture capital firm that invests in technology and life sciences companies. They have been involved with Expel since the Series C round.
  • Investment Focus Areas: Technology, life sciences.
  • Notable Investments: Dropbox, Robinhood, Slack.
• Scale Venture Partners
  • Details: Scale Venture Partners is a venture capital firm that focuses on early-in-revenue technology companies. They led Expel's Series B round.
  • Investment Focus Areas: Cloud computing, SaaS, digital health.
  • Notable Investments: Box, DocuSign, HubSpot.
• Greycroft
  • Details: Greycroft is a venture capital firm that invests in internet and mobile technology companies. They have been an existing investor in Expel's Series E round.
  • Investment Focus Areas: Internet technology, mobile technology.
  • Notable Investments: Venmo, Braintree, Scopely.

What's Next for Expel?

Expel is poised to capitalize on the growing demand for managed security services, particularly in cloud applications and infrastructure. With a valuation exceeding $1 billion, the company is well-positioned to expand its international presence, especially in Europe and Asia-Pacific. The focus on enhancing Kubernetes workload protection and strengthening channel partnerships presents significant growth opportunities.

Future fundraising appears promising, given the successful Series E round and backing from high-profile investors like CapitalG and Cisco Investments. However, Expel will need to navigate the complexities of scaling operations and maintaining service quality amidst a rapidly evolving cybersecurity landscape. The company must also address the persistent talent shortage in the industry to sustain its growth trajectory.

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