Technology
Wednesday, August 7th, 2024 7:27 pm EDT
Key Points
- Abnormal Security’s Series D Funding and Valuation: Abnormal Security has secured $250 million in Series D funding, led by Wellington Management and other existing investors, elevating its valuation to $5.1 billion, a 28% increase from its previous valuation of $4 billion during the Series C round in May 2022.
- Strategic Focus on AI-Driven Cybersecurity: The company’s focus on AI-driven cybersecurity has resulted in significant financial growth, with its annual recurring revenue surpassing $200 million, leading to a valuation multiple of 25 times its revenue. This funding will further enhance their human behavior AI platform and support customers’ AI initiatives.
- Broader Industry Trends and Plurilock Security: The robust funding environment for cybersecurity startups, marked by a $4.4 billion investment in Q2 2024, reflects a broader industry trend driven by increasing cyber threats. Plurilock Security Inc., another notable player, reported $70.4 million in revenue for 2023 and offers advanced cybersecurity solutions, including their recognized Plurilock AI Cloud platform and other services.
Abnormal Security has successfully secured $250 million in a Series D funding round, significantly elevating its valuation to $5.1 billion. This round was spearheaded by Wellington Management and included contributions from existing investors such as Greylock Partners, Menlo Ventures, Insight Partners, and the Falcon Fund. This new valuation reflects a 28% increase from its previous valuation of $4 billion during its Series C round in May 2022. CEO and co-founder Evan Reiser highlighted the impact of this funding, noting it will enhance their human behavior AI platform to protect users across everyday applications and support customers’ AI initiatives through autonomous AI solutions.
Abnormal Security’s focus on AI-driven cybersecurity has proven fruitful, evidenced by surpassing $200 million in annual recurring revenue (ARR), placing its valuation at 25 times its annual revenue. This achievement aligns with the broader industry trend of heightened investment in cybersecurity. According to Crunchbase, the second quarter of 2024 saw $4.4 billion invested in cyber startups, a 63% increase from the first quarter’s $2.7 billion and a 144% rise from Q2 2023, marking the sector’s best quarter since Q1 2022.
This surge in cybersecurity investments is driven by the increasing complexity and frequency of cyberattacks, elevating the value of leading cybersecurity firms like Abnormal Security. Another significant player, Plurilock Security Inc., reported $70.4 million in revenue for 2023, marking a 9% increase from the previous year. Despite its smaller scale compared to Abnormal Security, Plurilock remains influential, with a current valuation of $47.5 million and a valuation multiple of 0.67 based on revenue.
Founded in 2016, Plurilock has advanced cybersecurity with innovative academic research introducing behavioral biometrics for identity authentication. This method continuously verifies identity through the analysis of mouse and keyboard activity, providing substantial benefits over traditional biometric technologies. Plurilock serves as a major IT Value-Added Reseller and cybersecurity solutions vendor in North America, supporting governments and top global companies with its specialized services.
Plurilock offers an array of advanced cybersecurity solutions through its Plurilock AI Cloud platform, which secures users and cloud software without requiring new software deployment. The platform includes flexible single sign-on, granular access controls, and native multi-factor authentication. Additionally, Plurilock AI DLP ensures comprehensive data loss prevention and cloud security posture management, while Plurilock AI PromptGuard acts as a firewall between users and AI platforms to protect sensitive data. Plurilock AI Complete integrates these capabilities with real-time identity verification using their patented DEFEND™ technology.
Earlier this year, Plurilock expanded its professional services engagement with a leading publicly traded semiconductor company listed on the S&P 500 and Nasdaq 100 indexes. Recently, Plurilock was awarded a gold medal in Info-Tech’s 2024 Data Quadrant for Cloud Access Security Broker (CASB) solutions, marking the fifth consecutive year of recognition for its Plurilock AI in the competitive cybersecurity market.
For the full original article on CNBC, please click here: https://thedeepdive.ca/cybersecurity-boom-abnormal-security-closes-funding-at-25x-revenue-valuation/
