Crowdsourced Security Company Bugcrowd Raises $30 Million Led By Rally Ventures

By Amit Chowdhry ● Apr 11, 2020
  • Crowdsourced security company Bugcrowd has announced that it raised $30 million in Series D funding

Crowdsourced security company Bugcrowd has announced that it raised $30 million in Series D funding led by Rally Ventures. Including this round, the company has raised a total of over $80 million.

The company also revealed it saw 100% bookings growth in the North American enterprise market and a 100% increase in critical vulnerabilities submitted to customers.

With this funding round, it will help Bugcrowd accelerate the expansion of its crowdsourced security platform. As attack vectors are multiplying at a pace that rivals those that exploit them, organizations are losing ground in the race for finding and fixing vulnerabilities. And this is compounded by a global cybersecurity workforce gap of millions of people and the need for a layered security posture to better protect organizations.

Bugcrowd is aiming to solve this challenge with a Community response —where the combination of the crowd’s ingenuity at finding vulnerabilities and platform intelligence delivers guaranteed expertise and immediate return-on-investment for security at scale.

Bugcrowd is uniquely positioned in the market for helping customers quickly find vulnerabilities and fix them faster without compromising on quality or efficiency.

The company has delivered a multi-product platform to secure customers’ entire digitally connected landscape, including a Next-Gen Pen Test to meet compliance mandates, increased visibility with Attack Surface Management (ASM), and the ability to uncover the most critical bugs via Bug Bounty. Last year, Bugcrowd’s Pen Test business grew by 400%.

Bugcrowd continued to maintain the industry’s leading signal to noise ratio of 97% even with its record growth. This provides customers with the highest contextual intelligence to optimize their security processes.

And Bugcrowd also expanded on its executive team with newly appointed CMO Andy Burtis, Global Head of Business Development Karl Hutter, Head of Security Operations Grant McCracken, and Managing Director of EMEA James Clegg.

Bugcrowd serves thousands of customers across more than 65 industries in 29 countries. The company’s customers include Mastercard, Fitbit, Jet.com, Motorola, Twitch, Atlassian, TripAdvisor, Pinterest, Overstock.com, UnderArmour, Square, Twilio, HP, Etsy, Cisco Meraki, FCA, and SAP.

Key Quotes:

“Our financial performance in fiscal 2019 combined with our Series D investment validates the strong demand for crowdsourced security as an integral part of any company’s security posture. Today’s organizations face a continuous strain on their security resources, especially as we move to a remote work culture. The Bugcrowd platform provides customers with instant return on investment by providing on-demand access to highly-skilled security researchers on a platform that fosters collaboration between the security and engineering teams and delivers high quality submissions with no false positives to maximize our customers’ resources.”

-Bugcrowd CEO Ashish Gupta

“One of the biggest disruptions being felt at the moment across the world is the transition to remote working and the ability to do so without compromising security. As security and privacy concerns increase with this transition, advanced security resources like Bugcrowd’s crowdsourced security platform and solutions are critical for deeper levels of awareness and protection against vulnerabilities.”

-Auth0 CSO Joan Pepin

“In the fight against cybercriminals, we need resources that apply human ingenuity and talent to protect organizations from constantly evolving adversaries and attack methodologies. Bugcrowd has proven that they address customer challenges at scale with the combination of an empowered community of tens of thousands of researchers and an innovative technology platform that uncovers risks before they become serious issues. Because of this deep expertise, the company is able to deliver faster and better results than traditional and competitive models.”

-Art Coviello, Venture Partner at Rally Ventures (formerly CEO of RSA Security)