San Mateo, California-based big data security analytics company Exabeam announced it has raised $75 million in funding. This round was jointly led by new investor Sapphire Ventures and Lightspeed Venture Partners. Other existing investors also joined this round.
With this funding round, Exabeam is going to accelerate worldwide efforts to displace legacy security management vendors. Plus the funds will be used for expanding sales and to expedite new product features and configurations.
Over the past year, Exabeam’s market perception moved from a user and entity behavior analytics (UEBA) vendor to a leading SIEM provider. As a result, Exabeam was named as a leader in the 2018 Gartner Magic Quadrant for Security Information and Event Management report. And 76% of Exabeam’s replacement deals eliminated legacy vendors. Plus Exabeam has seen a 72% win rate in replacement deals against legacy rivals.
Ever since Exabeam raised its $50 million round in August 2018, the company increased sales of its cloud offerings on the heels of the release of Exabeam SaaS Cloud — which launched and got purchased by its first customer within the first quarter of the year. And the company also expanded its sales team and Technology Alliance Partnership Program — which attracted more than 350 software and services vendors representing integrations with nearly 2,500 unique data sources and APIs.
Essentially, Exabeam empowers enterprises to detect, investigate, and respond to cyber attacks more efficiently so their security operations and insider threat teams can work smarter. And security organizations no longer have to live with excessive logging fees, missed distributed attacks and unknown threats, or manual investigations and remediation.
“Over the last year, we’ve seen our strategic value increase, and our average deal size has grown by 100 percent from just two years ago. This is because we’re listening to our customers and delivering the innovative technologies they need, including, most recently, the ability to detect threats in the cloud. With the win rates we’re seeing and market opportunity in replacement business, we’re raising money to accelerate our go-to-market and enhance our products to bring additional innovation to modern SOC environments,” said Exabeam CEO Nir Polak. “Having recently backed groundbreaking public companies like Box, DocuSign, MuleSoft, Nutanix and Square, both Lightspeed and Sapphire have an incredible combined track record of spotting up-and-comers that will ultimately dominate their markets. Their collective guidance and support will only further our mission to keep our customers out of the breach headlines and take over the SIEM market along the way.”
“We’ve chosen to back Exabeam because of the momentum the company has in a very large and important market. Nir and the team are solving the problems that legacy SIEM vendors don’t seem to realize they have, and to us, that demonstrated unmistakable value. Customers are consistently buying its full platform as a replacement for the offerings that once dominated the market to improve their security posture and conquer the hurdles of outdated technology and expensive, data-based pricing,” added Sapphire Ventures managing director Anders Ranum. “As cyberattacks, cyberwarfare and corporate espionage are on the rise, Exabeam is enabling companies to analyze user behavior and spot even the most subtle anomalies in a way no other SIEM vendor has. They’re in an ideal position to be the next big security disruptor, and we’re excited to be joining in their journey.”
Exabeam is scaling to meet the needs of the largest organizations globally. Founded in 2013, Exabeam is continuing to disrupt the SIEM market with its flat / user-based pricing model and streamlined threat detection and machine learning-powered behavioral analytics thus helping security operations center (SOC) analysts work smarter.
“Lightspeed is excited to double down on our investment in Exabeam,” explained Lightspeed Venture Partners Ravi Mhatre. “Looking broadly at the security market in recent years, there have been several big exits from companies replacing legacy authentication and endpoint protection vendors. Security management is next, and Exabeam is well positioned to be the leader.”
Using the Exabeam Security Management Platform, analysts can collect unlimited log data, use behavioral analytics to detect attacks, and automate incident response both on-premise or in the cloud. And Exabeam Smart Timelines, sequences of user and device behavior created using machine learning, further reduce the time and specialization required for detecting attacker tactics, techniques, and procedures.