Sysdig Raises $188M at a Valuation of $1.19B to Secure Modern Cloud Applications
Sysdig, Inc., the secure DevOps leader, today announced a $188 million Series F funding round at a valuation of $1.19 billion. This round brings Sysdig’s total funding to $394 million since inception. The financing was led by Premji Invest & Associates and Third Point Ventures, with participation from Accel, Bain Capital Ventures, DFJ Growth, Glynn Capital, Goldman Sachs, Insight Partners, and Next47. The company also announced that Robert Schwartz from Third Point Ventures, Sandesh Patnam from Premji Invest & Associates, and Enrique Salem from Bain Capital Ventures have joined its board of directors.
Blog from CEO Suresh Vasudevan: Our $188M funding round fuels our mission to help customers confidently run modern cloud applications
The Sysdig Secure DevOps Platform uniquely addresses the challenges of securing containers, Kubernetes, and public cloud infrastructure. Sysdig is trusted by hundreds of leading enterprises, including Worldpay by FIS, Yahoo Japan, IBM, and JW Player to confidently run modern cloud applications while managing security risks and meeting compliance requirements.
This round follows strong growth in 2020, a rapidly expanding customer base, a thriving open source community, and a massive growth opportunity with containers and cloud.
- New annual contract value (ACV) added during the second half of the 2021 fiscal year (FY21) was 2.3 times the amount added in the same period, the previous fiscal year,* reflecting increasing cloud adoption and momentum throughout 2020.
- 450 enterprise customers, including dozens of large global enterprises, with an average annual recurring revenue (ARR) of more than $500,000 across the top 50 purchasing customers.
- Strong pattern of expansion by customers as demonstrated by an annual net revenue retention (NRR) of 140% at the end of FY21.
- With nearly 24 million downloads, including 1.7 million in the last month, Falco adoption has increased 300% in the last year.
- Sysdig significantly expanded the total addressable market (TAM) beyond container and Kubernetes security to include cloud security with the addition of continuous cloud security posture management (CSPM) in 2021. The served addressable market (SAM) also increased with the delivery of more than 50 significant features last year, including the first inline scanning for Fargate, zero trust network security, and cloud-scale Prometheus monitoring.
*The 2021 fiscal year ran from February 2020 - January 2021.
In November 2020, Gartner increased its 2021 public cloud forecast to total $304.9 billion, up from $257.5 billion in 2020.  Modern applications are increasingly built as highly distributed microservices, leveraging containers and Kubernetes, and a vast array of services on public cloud platforms. While this shift accelerates innovation, it presents unique challenges that legacy security tools, built with a proprietary, firewall mindset, are unable to address. To manage risk without slowing down application delivery, companies need a security stack:
- Architected for secure DevOps.
- Built on open source to accelerate innovation and drive standardization.
- Delivered as SaaS for simplicity and scale.
- That provides deep visibility across containers and cloud.
Run Containers, Kubernetes, and Cloud Applications Confidently with Secure DevOps
The Sysdig Secure DevOps Platform provides security and visibility to confidently run containers, Kubernetes, and cloud. Customers rely on the platform to secure the software build pipeline, detect and respond to runtime threats, monitor service health, and continuously validate cloud security posture and compliance.
Sysdig’s SaaS deployment model and curated, out-of-the-box workflows enable companies to reduce security risk while also improving operational efficiency by 25-50 percent. With functionality that spans cloud security posture, cloud workload protection platform, and container monitoring markets, 85 percent of new customers purchase the platform solution, replacing three point solutions.
Sysdig was founded as an open source company and the Sysdig Secure DevOps Platform was built on an open source foundation to address the security challenges of modern cloud applications. Open source sysdig and Falco are projects that were created by Sysdig to leverage deep visibility as a foundation for security, and they have become standards for container and cloud threat detection and incident response. Falco, which was contributed to the Cloud Native Computing Foundation (CNCF) in 2018, is now an incubating-hosted level project. Last year, Sysdig announced full compatibility and scalability for Prometheus, the CNCF project second in popularity to Kubernetes. Sysdig’s CSPM capability incorporates the popular Cloud Custodian, a CNCF project for static configuration checks.
Focus of this Investment
This new round of investment will enable Sysdig to invest in continued innovation in its open source foundation as well as in its secure DevOps platform, and grow research and development teams in Raleigh, Spain, Italy, Belgrade, and San Francisco. The funding will drive expansion of sales and marketing in existing markets within the United States, Europe, Japan, and Australia, as well as entry into newer markets in the Asia-Pacific region. A key emphasis will be on continuing to build ecosystem and channel partnerships and local SaaS regions around the globe.
Enrique Salem, Partner, Bain Capital Ventures: “The current security stack based on a firewall mentality and promoted by incumbents is irrelevant in the cloud. Sysdig takes a secure DevOps approach, allowing teams to ship cloud apps faster while managing security risk. They built on an open source security stack, which we see accelerates innovation and adoption.”
Sandesh Patnam, US Managing Partner, Premji Invest & Associates: “The cloud is driving a transformative shift in the way applications are developed and secured. This levels the playing field for young, innovative companies to emerge as leaders in this new, exciting category. We are extremely deliberate in our investments and expect Sysdig will not only have a successful IPO, but deliver strong long-term returns in the public market.”
Robert Schwartz, Managing Partner, Third Point Ventures: “Sysdig took several steps early on that differentiated it from other solutions, including taking an open source approach to container and Kubernetes security well before others jumped on the bandwagon. This has paid off tremendously for them. Sysdig has a marquee customer base and proven its ability to scale. We’re excited to be joining the Sysdig team and can’t wait to help them accelerate from here.”
Ping Li, Partner, Accel: “Accel partnered with Sysdig early on, with a belief that a DevSecOps stack, based on open source, deployed as SaaS is a winning formula. Today, they are the clear leader in runtime security for containers and cloud.”
Suresh Vasudevan, Chief Executive Officer, Sysdig: “Sysdig was founded as an open source company and architected for secure DevOps. In contrast, Palo Alto was founded as a proprietary firewall company, and that mindset slows app delivery in the cloud. The leading security stack for cloud delivered apps will be built on open source with a secure DevOps approach that delivers deep visibility into containers and cloud.”
 Gartner, Gartner Forecasts Worldwide Public Cloud End-User Spending to Grow 18% in 2021, Katie Costello and Meghan Rimol, 17 November 2020
Sysdig is driving the secure DevOps movement, empowering organizations to confidently secure containers, Kubernetes, and cloud. With Sysdig, teams secure the build, detect and respond to threats, continuously validate cloud posture and compliance, and monitor performance. Sysdig is a SaaS platform, built on an open source stack that includes Falco and sysdig OSS, the open standards for runtime threat detection and response. Hundreds of companies rely on Sysdig for container and cloud security and visibility. Learn more at www.sysdig.com.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
Amanda McKinney Smith
About Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Lattice Automate Solution Stack Accelerates Development of Industrial Automation Systems11.5.2021 20:00:00 CEST | Press release
Lattice Semiconductor Corporation (NASDAQ: LSCC), the low power programmable leader, today extended its portfolio of comprehensive low power FPGA-based solution stacks with the introduction of Lattice Automate™. The stack includes software tools, industrial IP cores, modular hardware development boards, and software-programmable reference designs and demos that simplify and accelerate implementation of applications like robotics, scalable multi-channel motor control with predictive maintenance, and real-time industrial networking. Intelligent industrial systems made possible by Automate will play a vital role in automating future smart factories, warehouses, and commercial buildings. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210511005309/en/ Introducing the Lattice Automate solution stack for the accelerated development of industrial automation applications. (Graphic: Business Wire) Technology trends like the IoT and Ed
Esri and IBM Team Up to Take on Climate Change with Call for Code11.5.2021 19:23:00 CEST | Press release
Esri, the global leader in location intelligence, today announced it is joining the fourth annual Call for Code Global Challenge. Created by David Clark Cause and launched in partnership with IBM, United Nations Human Rights, and the Linux Foundation, Call for Code is designed to make an immediate and lasting global impact on humanitarian issues, using open-source-powered technology. In this year’s competition, software developers and innovators around the world will take on climate change with open-source software, including Red Hat OpenShift, IBM Cloud, IBM Watson, IBM Blockchain, and data from The Weather Company. Since Call for Code was launched in 2018, more than 400,000 developers and problem solvers across 179 nations have participated, creating more than 15,000 applications. This year’s competition focuses on three sub-themes related to combating climate change: water availability and consumption, food production and delivery, and economic production and consumption. The winnin
Experian Announces New Commitment to a Flexible Working Culture11.5.2021 18:26:00 CEST | Press release
Experian, the global information services company, has today announced a new global approach to work. The aim is to take the learnings from the experience of Covid-19 lockdown and create a working environment which suits everyone’s situation. Experian is committing to promote more individual choice by creating a new hybrid model, where employees will be encouraged to ‘work your way’. Through the lockdown, Experian moved its global operations to remote working with very limited disruption. Most employees will be offered increased flexibility, with the majority moving to a hybrid model, some working fully remotely, and some in the office. Experian – which operates in 45 countries around the world – believes this will continue to boost productivity and improve the work / life balance options for its 17,800 global employee base. What the Covid-19 crisis has reminded us, beyond everything else, is that we are all individuals living very different lives. That’s prompted Experian to go down t
SentinelOne is the Only Vendor to Score Highest Across All Three Gartner Critical Capabilities Use Cases11.5.2021 17:40:00 CEST | Press release
SentinelOne, the autonomous cybersecurity platform company, today announced that Gartner has positioned SentinelOne with the highest scores in all three use cases; Type A, B, & C in Gartner’s 2021 Critical Capabilities for Endpoint Protection Platforms report1. Out of the 19 vendors included in the report, SentinelOne is the only vendor that received the highest score across all three Critical Capabilities use cases: Customer use case Type A is focused on “lean forward” organizations that adopt new technologies very early in the adoption cycle. Customer use case Type B is focused on “overall value” by weighing the risks of the early use of new technology against the benefits. Customer use case Type C represents organizations that typically view technology as an expense or operational necessity and use it as a means to reduce costs. “We believe receiving the highest product score across all three customer use cases in the 2021 Critical Capabilities for Endpoint Protection Platforms vali
1E Challenges DEM Market to Deliver More, Launching New Unified eXperience Management Category11.5.2021 16:35:00 CEST | Press release
1E, innovators in endpoint management, today announced Unified eXperience Management (UXM), a new category that seeks to address the siloed approach inherent in tools in the Digital Experience Monitoring (DEM) space. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210511005842/en/ 1E Tachyon Platform: Unified eXperience Management to improve the Digital Experience of all employees (Graphic: Business Wire) Due to the relative immaturity of the Digital Experience Management category, most tooling is focused on identifying and reporting on the scale of the problem, scoring, and issue identification. These tools create analytics silos that give insight, but are uncoupled from the automation technology that can actually improve end-user experience at an enterprise scale. Meanwhile, employees are becoming increasingly more frustrated, with 56% feeling dissatisfied with their IT experience. Organizations looking to improve the digit
Biorasi Receives ISO 9001:2015 Certification for Quality Management11.5.2021 16:30:00 CEST | Press release
Biorasi, a leading global full-service contract research organization (CRO), is proud to announce the achievement of ISO 9001:2015 certification. By earning this ISO accreditation, Biorasi has demonstrated dedication to the practice of quality assurance within the clinical trials industry and commitment to quality excellence for individual clinical studies. “ISO 9001:2015 certification is a big deal for Biorasi,” said Chris O’Brien, CEO at Biorasi. “It is a powerful, independent validation of the quality of our processes. It sends a message to potential sponsors across the globe that Biorasi cares deeply about quality. It tells them they can trust us.” Biorasi was presented with their ISO 9001:2015 certification on May 5, 2021, joining the ranks of other quality-focused organizations, including our preferred vendor, IBM Watson Health. “Our Quality Policy is driven by the fundamental understanding that patients and their families are affected by the decisions we make,” said Todd Brill,
Alvotech Seeks to End AbbVie’s Wrongful Monopoly on Humira and Bring Affordable Arthritis Treatment to U.S.11.5.2021 16:23:00 CEST | Press release
Alvotech today filed a federal lawsuit (Case 1:21-cv-00589) seeking to end the monopoly that pharmaceutical giant AbbVie has long-maintained on the adalimumab market, sold as Humira. Humira is the highest grossing prescription drug in the United States with over $16 billion in sales in 2020 (nearly $20Bn globally). Alvotech has developed a biosimilar (analogous to a generic) of Humira called AVT02, the first-filed biosimilar drug equal in strength to Humira’s latest formulation, which AbbVie markets as a high-concentration, pain-free drug. The company is also developing AVT02 as an interchangeable product and it expects results from its ongoing interchangeability study in Q2 of this year. AVT02 could save U.S. taxpayers and the overall healthcare system $8-10 billion annually. “Our new product will be a gamechanger that will provide consumers who are suffering from chronic pain with significant savings, and we look forward to bringing this drug onto the market as soon as possible,” sai