Snyk: $300 Million Funding And $4.7 Billion Valuation

By Amit Chowdhry ● March 23, 2021
  • Snyk — the leader in cloud-native application security — recently announced that the company has closed a Series E financing round totaling $300 million. This funding round was at a $4.7 billion valuation.

Snyk — the leader in cloud-native application security — recently announced that the company has closed a Series E financing round totaling $300 million. And the transaction included both primary and secondary offerings and resulted in $175 million of new capital into the business. The company has now raised a total of $470 million to date with a valuation of $4.7 billion post this round, quadrupling since the beginning of 2020.

This round of funding was co-led by Accel and Tiger Global with participation from existing investors Addition, Boldstart Ventures, Canaan Partners, Coatue, GV (formerly Google Ventures), Salesforce Ventures, Stripes, and funds managed by BlackRock and new investors like Alkeon, Atlassian Ventures, Franklin Templeton, Geodesic Capital, Sands Capital Ventures and Temasek.

This investment will enable Snyk to serve the fast growing global demand for the company’s Cloud Native Application Security Platform – which is the only developer-first solution to provide security visibility and remediation for every critical component of modern applications, including the application code, open source libraries, container infrastructure, and infrastructure as code.

The company had additionally announced the hiring of Chief Marketing and Customer Experience Officer Jeff Yoshimura; CIO Erica Geil; Vice President, Asia Pacific Japan (APJ) Sales Shaun McLagan; and the appointment of two new Board Members, Michael Scarpelli, Chief Financial Officer, Snowflake; and Ping Li, Partner, Accel.

With 43% of data breaches today directly linked to application vulnerabilities, organizations across the board have realized a new approach to security is urgently needed. And since its founding in 2015, transforming the legacy industry has been Snyk’s guiding vision, empowering developers to build security into the development process early rather than waiting to hand it over to a separate security team when development is done.

Snyk has been at the forefront of the transformation of the developer’s traditional role as they have taken on greater authority and autonomy for security and the function has rapidly shifted left. And to be successful, developers require real-time answers, automated remediation and the integration of security within their workflows, while security teams need more collaboration with developers to enable security and governance at scale across all of the organization’s applications, infrastructure, and cloud services.

With an estimated 27 million software developers worldwide today, this number is expected to grow by 75% in the upcoming decade. And Snyk has long invested in advancing other developer-first companies to embed security into its diverse developer tooling ecosystem, introducing them to a new way of working that brings about greater security measures without greater friction or frustration.

The Snyk Intel Vulnerability Database powers innovative and developer-centric technology companies such as Atlassian, Datadog, Docker, Dynatrace, Google, Red Hat, Salesforce and Twilio. Snyk said it is privileged to have members of this ecosystem directly participate in this latest financing round.

KEY QUOTE:

“Our relentless focus on the experience of the 2.2 million developers building applications of all kinds securely with Snyk has resulted in our success to date, and we believe there is an exponential, generational opportunity still in front of us. This latest investment allows us to accelerate our growth at every level – doubling down on our successful product led growth strategy, adding to our customer roster, recruiting talent to our team worldwide and expanding geographically.”

— Peter McKay, CEO, Snyk

“We first met the Snyk team at the start of their journey, as early investors. Throughout our partnership, we’ve witnessed first-hand Snyk’s unshakeable dedication to developer and security teams and their original vision become a reality. We’re looking forward to supporting the successes of Snyk in 2021 and beyond.”

— Ping Li, Partner, Accel

“We believe Snyk’s developer-first approach to security is a fantastic tool for developers and organizations today. Snyk has already showcased some amazing integrations with our tools, and we’re now thrilled to extend our partnership with them through an Atlassian Ventures investment.”

— Chris Hecht, Head of Corporate Development, Atlassian

“Salesforce Ventures was an early investor in Snyk and we’re excited to grow our partnership even further, particularly as Snyk is deployed across various development teams at Salesforce. As transformation accelerates in this digital-first world, Snyk’s vision to enable companies to embrace security earlier in the development cycle continues to resonate deeply.”

— Alex Kayyal, Partner, Salesforce Ventures International