App security startup plans to expand in US as standalone company, CEO says
Two weeks after Palo Alto Networks reportedly pulled out of talks to acquire Apiiro, the cybersecurity startup announced Thursday that it has raised $100 million in new funding that the company plans to spend primarily on sales and marketing.
The Series B funding for Apiiro, a New York-based cloud-native application security company with R&D operations in Tel Aviv, Israel, amounts to $135 million that Apiiro has raised since its founding in 2019.
The latest investment round was led by General Catalyst with the participation of Greylock and Kleiner Perkins.
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Idan Plotnik, co-founder and CEO of Apiiro, told CRN that his company “absolutely” plans to spend some of the newly raised money on expanding his channel’s sales, though he declined to say what percentage of Apiiro’s revenue is currently generated. through the channel. .
“We’re already in the GitHub and Google marketplaces and now we’re growing (sales) across channels as well,” he said. “The United States is the main market target.”
But Plotnik said he doesn’t see the channel generating most of the company’s revenue in the near future. “Application security is a complex domain,” he said, noting that his company has to work closely with customers on technology issues.
While Apiiro plans to grow its overall sales and marketing operations, Plotnik said expanding the company’s workforce will be done “with great caution.”
“As you know, the market is not in great shape right now, and we don’t want to be in a situation where we’re laying people off,” Plotnik said.
Although he did not mention other cybersecurity firms by name, Plotnik was clearly referring to the problems facing later-stage cybersecurity startups such as Snyk and Cybereason, both of which recently laid off employees amid uncertain economic times.
In addition to sales and marketing, Plotnik said that Apiiro plans to invest funds in its engineering areas.
Apiiro’s new Series B funding comes two weeks after months-long acquisition talks between cybersecurity giant Palo Alto Networks and Apiiro collapsed, allegedly due to differences over Apiiro’s valuation, according to a report. Calcalist report.
The Palo Alto Network reportedly offered up to $600 million for Apiiro, but it was apparently not enough for the security startup, Calcalist reported.
In a follow-up email statement to CRN, Plotnik said he “cannot comment on the rumors” but made it clear that he is glad Apiiro remains an independent company.
“We have (principles) and values and we will never leave our amazing employees behind,” he said, without elaborating. “They are the power that built Apiiro, they are the most important thing for us and the reason why we are successful.
He added: “In most cases, the big cybersecurity companies think that money can solve their cacophony of products and culture.”
In his statement, he also expressed great expectations for Apiiro.
“While we are considering various options to expand our business, we have seen significant market demand for next-generation application security solutions and our team is well positioned to address this need at scale,” he said.
“We are on a mission to build an independent $10 billion company in the next few years in a reasonable and profitable manner, and this significant funding allows us to do just that, while continuing to lead the market and drive our next phase of growth. ”
In a press release, Apiiro said it introduced a “completely new approach” to cloud application security by “providing full visibility into the code foundation, assessing risk from design to code to cloud and proactively fix real risks that attackers can exploit before launching them.” to the cloud”
Quentin Clark, managing director of General Catalyst, praised the work of Plotnik and his colleagues at Apiiro.
“In this economy, it’s important to invest in technology that helps companies drive business growth,” Clark said in a statement.
“They go beyond providing tools for developers to address potential security issues in the code base, and in fact provide an operating platform that manages those fixes in the context of how a company is configuring and deploying software. This approach has fueled phenomenal growth to date, which comes from strong execution with the right team at the right time.”