Snyk has successfully raised $378.5 million over five funding rounds, achieving a valuation of over $1 billion. The platform offers a developer-first security solution that helps use open source code securely.
Keep reading to explore the intricacies of Snyk's fundraising journey and the investors backing this innovative platform.
What Is Snyk?
Snyk, founded by Guy Podjarny, is a developer-first security platform headquartered in London, with additional offices in Boston, San Francisco, and Tel Aviv. The company focuses on helping developers use open source code securely by continuously finding and fixing vulnerabilities and license violations in open source dependencies and containers.
Since its inception, Snyk has integrated seamlessly into developers' workflows, enabling them to manage the security of their code at scale. The platform is used by over 160,000 developers and has been recognized as Gartner’s Cool Vendor in 2018.
With a team size ranging from 1001 to 5000 employees, Snyk continues to expand its reach and impact in the developer security space, providing solutions like Snyk Code, Snyk Open Source, Snyk Container, and Snyk IaC.
How Much Funding Has Snyk Raised?
- Seed Round
- Amount Raised: $3 million
- Date: 2016
- Lead Investors: Boldstart Ventures
- Motivation Behind the Round: To help developers find and fix vulnerabilities in their open source code before it goes into production.
- Series A Round
- Amount Raised: $7 million
- Date: March 2018
- Lead Investors: Boldstart Ventures and Canaan Partners
- Motivation Behind the Round: To broaden the reach of the tool to cover other open source projects and to double the number of employees.
- Series B Round
- Amount Raised: $22 million
- Date: September 25, 2018
- Lead Investors: Accel, with participation from GV, Boldstart Ventures, and Heavybit
- Valuation at Round: Around $100 million
- Motivation Behind the Round: To meet the demand from enterprises wanting to tackle security vulnerabilities in open source code.
- Funding Round
- Amount Raised: $150 million
- Date: January 21, 2020
- Lead Investors: Stripes, along with Coatue, Tiger Global, BoldStart, Trend Forward, Amity, and Salesforce Ventures
- Motivation Behind the Round: To accelerate product innovation, expand into EMEA and APJ regions, and support the DevSecOps community.
- Funding Round
- Amount Raised: $530 million
- Date: September 2021
- Valuation at Round: $8.5 billion
- Motivation Behind the Round: To pay off early investors and employees and to continue scaling the business.
- Funding Round
- Amount Raised: $196.5 million
- Date: December 12, 2022
- Lead Investors: Evolution Equity Partners, G Squared, Irving Investors, Qatar Investment Authority
- Valuation at Round: $7.4 billion
- Motivation Behind the Round: To secure more cash for growth, both organically and through acquisitions, and to strengthen the balance sheet in a challenging market.
Total Amount Raised: $908.5 million
Current Valuation: $7.4 billion
Key Investors
- Evolution Equity Partners
- Details: Evolution Equity Partners is a venture capital firm that invests in cybersecurity and enterprise software companies. They have a global presence with offices in the US and Europe.
- Investment Focus Areas: Cybersecurity, enterprise software, data analytics.
- Notable Investments: Onapsis, SecurityScorecard, Quantexa.
- G Squared
- Details: G Squared is a growth-stage venture capital firm that invests in technology companies. They focus on companies that are leaders in their respective markets.
- Investment Focus Areas: Technology companies across various stages.
- Notable Investments: Lyft, Spotify, Coursera.
- Qatar Investment Authority
- Details: Qatar Investment Authority is the sovereign wealth fund of Qatar, investing globally across various sectors. They aim to diversify Qatar's economy through strategic investments.
- Investment Focus Areas: Real estate, technology, infrastructure.
- Notable Investments: Volkswagen, Barclays, Rosneft.
- Boldstart Ventures
- Details: Boldstart Ventures is an early-stage venture capital firm based in New York City. They focus on enterprise software and developer tools.
- Investment Focus Areas: Enterprise software, developer tools, cybersecurity.
- Notable Investments: BigID, Kustomer, Snyk.
- Accel
- Details: Accel is a global venture capital firm that invests in early and growth-stage technology companies. They have a strong track record of backing successful startups.
- Investment Focus Areas: Technology companies at early and growth stages.
- Notable Investments: Facebook, Dropbox, Slack, Spotify.
What's Next for Snyk?
Snyk stands at the cusp of significant opportunities, driven by the growing need for developer-first security solutions. The fragmented developer security market presents a vast landscape for consolidation, allowing Snyk to position itself as a key player. With plans to expand into EMEA and APJ regions, the company is poised to tap into new markets and broaden its support for the DevSecOps community.
Future fundraising opportunities appear promising, with potential IPO plans on the horizon, contingent on favorable market conditions. The company’s ability to attract both new and existing investors underscores its strong market position and growth potential. However, Snyk must navigate market headwinds, maintain growth, and achieve cash flow break-even by 2024, all while scaling its platform and integrating security seamlessly into development processes.
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