Anomali Raises $30M in Series C Funding to Advance Its Vision

By Sean Michael Kerner  |  Posted 2016-04-21 Print this article Print

The security vendor formerly known as ThreatStream takes on new funding to advance its new technology direction.

Security vendor Anomali today announced a new $30 million Series C round of funding, bringing total funding to date for the company to $56 million since it was launched in 2013.

Anomali will use the new round of funding—which was led by Institutional Venture Partners (IVP) and includes investments from General Catalyst Partners, GV (formerly Google Ventures) and Paladin Capital Group—to properly support its new technology direction, which was first announced on Feb. 29.

Previously known as ThreatStream, the company rebranded itself as Anomali as part of the new product focus. Hugh Njemanze, CEO of Anomali, noted that there has been some discussion in the financial community about venture investment drying up in 2016. While that might be true for some companies, he said investors have told him that competition is heating up for the companies that are worth investing in.

"We launched two new products recently, so the motivation behind the Series C round is to make sure we can organically support the new products and customer growth," Njemanze said. "It's basically operational money to run with everything we have just introduced."

One product that Anomali just introduced is Anomali Reports, a software-as-a-service (SaaS) platform for matching customer log data against threat intelligence to fully identify potential indicators of compromise (IOCs). The second product, Anomali Enterprise (originally called Harmony Breach Analytics), provides on-premises capabilities that can be deployed next to a Security Information and Event Manager (SIEM) technology, offloading the problem of matching IOCs to events.

Njemanze said the product was renamed to Anomali Enterprise to double-down on the Anomali brand name, especially since both of the new products are essentially flavors of the same technology.

The two new products represent an evolution from Anomali's initial product, ThreatStreamOptic, which is still where the bulk of the company's revenues come from. Optic was updated to version 6.0 at the same time as the new Anomali products were announced. With Optic, threat intelligence is provided to a SIEM in a way that can find some, but not all, IOCs.

"Some of our new Anomali Enterprise customers this quarter are from customers that were already running ThreatStream Optic," Njemanze said.

Njemanze noted that Anomali will continue to evolve the ThreatStream Optic product in the future.

"We now have two different approaches to solving the same customer problem," he said. "ThreatStream Optic takes an approach that other vendors in the space have followed, and we'll keep the product to protect ourselves from pricing pressures."

As such, Njemanze said if an organization is interested in Anomali Enterprise and compares it to a competitive product where there is pricing pressure, Anomali will point it to ThreatStream Optic.

Sean Michael Kerner is a senior editor at eWEEK and Follow him on Twitter @TechJournalist.


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