Opal Security – a next-generation identity security and access management company – recently announced its $22 million Series B funding, led by Battery Ventures, with participation from existing investors Greylock and Box Group. This funding round brings Opal Security’s total funding to $32 million.
Since Opal Security’s Series A funding round last year, the company has realized a 4x increase in annual recurring revenue for its suite of identity access management solutions, driven by intense enterprise demand for identity security products. With this funding round, Opal Security will expand its global team, scale enterprise customer support, and ramp up new product development, including a new suite of visualization and AI tools to remediate identity risk.
The new wave of cybersecurity regulation, including a new U.S. Securities and Exchange Commission (SEC) rule requiring companies to quickly and comprehensively disclose cybersecurity incidents, is behind this spike in enterprise demand. And Opal Security customers are eager to use the company’s platform to reduce the lack of visibility and enforce least privilege across their organizations to reduce the likelihood of ‘compromised credential’ incidents.
These incidents – which happen when bad actors gain access to employees’ valid credentials, like passwords and logins – are the leading cause of successful cyber intrusions, according to the U.S. Cybersecurity & Infrastructure Security Agency (CISA). And 75% of compromised credential incidents result from system misconfigurations or mismanagement of access, per Gartner.
Scaling organizations and large enterprises demand flexible and cloud-native identity security that can manage identities and access across fragmented, interconnected systems and hybrid environments. And Opal Security’s next-generation platform, currently used by customers including Databricks, Figma, Scale AI, and larger enterprises, enables users to securely manage access to the tools and resources they need to do their jobs quickly, easily and securely. Opal Security’s platform simplifies the management of human and non-human identities by providing a clean, API-driven approach to unifying and acting on identity and authorization data.
KEY QUOTES:
“There are more cybersecurity regulations coming, and with them, increased exposure of what’s really happening inside organizations when it comes to access and authorization. In large organizations, the complexity of security and IT challenges often leads to decision paralysis as teams grapple with where to begin addressing massive organizational and technical debt. Despite identity and access processes spanning multiple departments, accountability for outcomes and risk falls on security and infrastructure teams. The need for a unified system is becoming more important to guard against malicious attacks and reduce the blast radius of damage caused.”
— Umaimah Khan, CEO and co-founder of Opal Security
“Identity and authorization are the cornerstone of security infrastructure. One of the primary hurdles faced by organizations is establishing comprehensive and uniform IAM practices. Opal Security has developed a platform that integrates various solutions, significantly advancing progress in this domain. I am enthusiastic about contributing to their efforts in shaping the next generation of identity and access.”
— Caleb Sima, Chair of CSA AI Security Alliance
“The cybersecurity landscape is continually evolving, as attack surface areas expand and attackers become more sophisticated. Market dynamics are also forcing companies to become as efficient as possible. The Opal Security team has homed in on a key market opportunity: bolstering the security of companies’ internal systems through identity and access management, while not compromising the ability of employees to do their jobs.”
— Dharmesh Thakker, general partner at Battery Ventures (the investment firm leading Opal Security’s Series B financing)
