Cybersecurity startup Securonix raises $1B+ after doubling recurring revenue

Cybersecurity startup Securonix Inc. today announced that it has raised more than $1 billion in fresh funding to fuel growth initiatives.

The investment was led by private equity firm Vista Equity Partners, which counts major enterprise technology firms such as  Tibco Software Inc. among its portfolio companies. Volition Capital and Eight Roads Ventures participated as well. 

Securonix provides a cloud-based platform that combines features from several different types of cybersecurity tools into a single product. The startup says that its customers include half the Global Fortune 10.

One set of features in Securonix’s platform focuses on security information and event management, or SIEM. That’s the term for the practice of analyzing cybersecurity data from a variety of different systems within the corporate network to detect hacking attempts. 

Securonix says that its platform’s SIEM component can analyze more than one million cybersecurity-related events per second. The platform uses machine learning to find threats and prioritize them based on severity. Prioritizing threats according to their severity allows information technology teams to tackle the most urgent cybersecurity issues first, which improves the effectiveness of a company’s breach prevention efforts. 

Administrators using Securonix can create automation workflows, or playbooks, to further improve productivity. A playbook is a series of cybersecurity actions that Securonix’ platform carries out automatically when certain conditions specified by the IT team are met. The capability allows administrators to more quickly complete commonly recurring tasks.

Securonix also provides a raft of more specialized features for use cases such as protecting SAP SE applications from cyberattacks. 

Securonix sells its platform both to enterprises and managed security service providers, which use the startup’s technology to protect the networks of their customers. In the  managed security service provider segment, Securonix says that bookings from new customers are up to 270% year-over-year. Overall, Securonix says that annual recurring revenue from its software-as-a-service offering has doubled over the past 12 months. 

Securonix increased its headcount from about 500 workers to more than 1,000 in the last year to support revenue growth. Following the $1-billion-plus investment announced today, the startup plans to continue the hiring effort by making “significant investments in global talent acquisition”. As part of the plan, the startup said that it will recruit senior leaders across its engineering, cloud operations, cybersecurity threat research, sales and marketing groups.

“We solve a very tough problem that requires excellence across multiple domains, including product engineering, threat detection/hunting, data science, and operations,” said Securonix  co-founder and Chief Executive Officer Sachin Nayyar. “This funding will help us accelerate investments in these areas and continue to provide a world-class service to our customers.”

There are dozens of other venture-backed startups in the enterprise cybersecurity market where Securonix competes. The new $1-billion-plus funding round, one of the largest raised in recent memory by a cybersecurity startup, may enable Securonix  to carry out its growth plans at a faster rate than some of its rivals. Moreover, the investment gives the company the option to make acquisitions that could further accelerate its roadmap. 

Image: Securonix