AlienVault Raises $52M to Grow Its Security Business
Open-source efforts will remain at AlienVault's core as it moves forward with its vision of bringing unified security management technology to more companies.Privately held security vendor AlienVault announced on Aug. 19 that it has raised $52 million in a new Series E round of funding, led by Institutional Venture Partners and including the participation of GGV Capital, Kleiner Perkins, Trident Capital, and Caufield and Byers. Total funding to-date for AlienVault now stands at $116 million. AlienVault CEO Barmak Meftah said that the new funding will be used to help his company expand its market reach as well as grow its technology capabilities. AlienVault's current technology includes the Open Source Security Information and Event Management (OSSIM) project, the commercial Unified Security Management Platform (USM) as well as the AlienVault Open Threat Exchange (OTX). "Our company is very capital-efficient and we leverage in-bound demand generation that is not a very expensive model," Meftah told eWEEK. "So our customer acquisition cost is economically appealing." Meftah added that he's currently on track for year-over-year revenue growth of 65 percent and is adding up to 400 new customers every quarter. The total addressable market for the technologies that his company sells is large and there is room for continued growth acceleration, he said.
"The vast majority of the market falls into the sweet spot we're going after, in that they have a large attack surface and all the issues of a large financial services vendor, but just don't have the expertise," Meftah said.