What $98M in New Security Investments Means to the Market
This past week, a half-dozen security vendors announced new funding rounds, totaling approximately $98 million. The different technologies and vendors that benefited from the investments are a microcosm of the current state of security and where investors see opportunities in the future.
By dollar amount, the largest round of funding was the $41 million Series D raised May 24 by data center security vendor vArmour, bringing the company's total funding to date up to $83 million The promise of vArmour is that of network segmentation, helping an organization isolate different parts of a network in an effort to limit data breach risks.
The whole trend of segmentation is a hot one in IT today, so it's no surprise that vArmour is able to raise funds in support of its business expansion. From a competitive perspective, VMware has been talking about the benefits of segmentation for at least a year and it's a core part of the promise of Docker containers and the emerging trend of microservices. It's also an area where startup Illumio has been active, though Illumio has raised more money than vArmour at $142 million.
Password security vendor Dashlane this week announced a $22.5 million Series C round as it ramps up its business. The idea behind Dashlane is to provide its users with the best password manager and a secure digital wallet. Time and again, passwords are identified in breaches and studies as being a weak link for security. Although many vendors with different approaches are trying to help improve password use, it's still a very wide-open market with lots of opportunity.
NEWS ANALYSIS: vArmour, Agari, Dashlane, Votiro and others raised new funding this week. What does this suggest about the state of enterprise security?
Another area with lots of options—and lots of opportunity—is that of email security and authenticity. That's where Agari fits in; the company raised $22 million in Series D financing, bringing its total funding up to $44.7 million. Agari's promise is a highly scalable approach for securing email in a way that can limit the risks of an increasingly common attack, known as a business email compromise (BEC). In a BEC attack, a hacker will impersonate an employee or the CEO of company and make a seemingly legitimate request for a funds transfer that is, in fact, fraudulent. Given that every organization on the planet uses email, the total addressable market for Agari's technology is massive, which is likely why investors see it as an opportunity to profit.