Snyk, a US-based software debugging tool developer backed by internet technology group Alphabet and enterprise software producer Salesforce, secured $200m yesterday in a series D round led by investment firm Addition.
The round valued the company above $2.6bn, up from more than $1bn when it closed its last round in January this year. Its overall funding now stands at $452m.
Founded in 2015, Snyk has developed software that automatically scans open-source software for vulnerabilities and identifies misused code dependencies in case a developer may have misinterpreted the terms of a licence.
The capital will allow the company to speed up product development. It said it had experienced more than 275% revenue growth and doubled its headcount this year.
Peter McKay, chief executive of Snyk, said: “Since early 2020 we have seen dramatic acceleration of digital transformation fueled by the pandemic that now requires both application development speed and security.
“The result has been companies turning to Snyk to enable security at scale by giving their development teams the security intelligence, automated workflows and visibility into mitigating risk faster and more easily.
“With this latest investment we will accelerate even faster, expanding our cloud-native application security platform and bringing Snyk to new markets around the world.”
Growth equity firm Stripes led the January round, investing alongside Salesforce’s corporate venturing unit, Salesforce Ventures, as well as Coatue Management, Tiger Global Management, Boldstart Ventures, Trend Forward and Amity.
Alphabet subsidiary GV participated in a $70m round for the company in September 2019 together with Boldstart and Accel. It had raised $22m in a mid-2018 series B round led by Accel and also featuring GV, Boldstart, Heavybit and undisclosed additional backers.
Boldstart and Canaan Partners had co-led Snyk’s $7m series A round earlier the same year. The round included Heavybit, FundFire and private investor Peter McKay, who subsequently became the company’s chief executive in June 2019.
