Bugcrowd Raises $102 Million To Scale AI-Powered Crowdsourced Security Platform

By Amit Chowdhry ● Feb 12, 2024

Bugcrowd announced it had secured $102 million in strategic growth funding to scale its AI-powered crowdsourced security platform offerings globally. The funding round – which was led by General Catalyst with participation from longtime existing investors Rally Ventures and Costanoa Ventures – underscored investor confidence in the company’s leadership position in the crowdsourced security market.

The additional funding round enables Bugcrowd to accelerate growth across EMEA, APAC, and the United States, fund continued innovation into the Bugcrowd Platform, and utilize opportunities for strategic M&A, providing added value to clients, partners, and the hacker community.

As a part of this funding round, Mark Crane, Partner at General Catalyst, and Paul Sagan, Senior Advisor at General Catalyst, will join the Bugcrowd Board of Directors. And Sagan will also step into the Board Chair role. Jeff Simon, Chief Security Officer at T-Mobile, and Prabhath Karanth, Vice President and Global Head of Security and Trust at Navan, join the advisory board to serve along with David Fairman, CIO & CSO – APAC at Netskope.

Bugcrowd’s proactive approach to cybersecurity involves utilizing a crowdsourced AI-powered platform to identify and remediate security vulnerabilities before bad actors can exploit them. And Bugcrowd is the only multi-solution and crowdsourced security provider that unites its customers’ and hackers’ collective ingenuity and expertise to stay ahead of threat actors.

Over the past year, Bugcrowd has added over 200 clients to its roster, including OpenAI, T-Mobile, Rapyd, and ExpressVPN, bringing the total number of clients to nearly 1,000. And the company has also added over 100 new people to its staff, grown the overall business by more than 40%, and the Pentest as a Service (PaaS) business by nearly 100% year-over-year.

Bugcrowd has a track record of success with a diverse and growing customer base, including leading organizations across industries – who have experienced tangible results and improvements in their security posture through Bugcrowd’s PTaaS, Bug Bounty, vulnerability disclosure program (VDP) and attack surface management offerings.

KEY QUOTES:

“We saw an opportunity to make a strategic investment in the crowdsourced security market, with the goal of fostering collaboration between customers and hackers to collectively tackle real threats and vulnerabilities. In our view, the validation from customers, hackers, industry analysts, and the broader cybersecurity community well positions Bugcrowd to be a category-leading company. We look forward to partnering with Dave and team in setting new standards in crowdsourced security.”

  • Mark Crane, Partner at General Catalyst

“We are excited to add General Catalyst as a partner, as well as these key visionaries to our Board of Directors, to support the next phase of Bugcrowd’s growth. Over the past year, more than 200 new clients have joined the Bugcrowd Platform to leverage the collective ingenuity of the hacker community. With continued support from our current investors, including participation in this round from Rally Ventures and Costanoa Ventures, Bugcrowd is hyper-focused on a mission to redefine crowdsourced security and this strategic investment is a testament to the unwavering dedication of our team, our hacker community and the trust customers placed in Bugcrowd’s innovative approach to proactive security. This latest investment gives us the resources we need to continue to be the leading force in the crowdsourced security market.”

  • Dave Gerry, CEO, Bugcrowd

“Protecting customers, partners and employees is a top priority at T-Mobile, and one of the ways we’re doing that is by making hackers our allies as we find additional ways to protect information. We relaunched our bug bounty program with Bugcrowd for their best-in-class triage team and direct access to elite hackers, which have helped us strengthen our overall security.”

  • Jeff Simon, SVP & Chief Security Officer at T-Mobile