Lacework Raises $1.3 Billion in Funding, 'Largest' in Security Industry History

Lacework has raised $1.3 billion in growth funding at a valuation of $8.3 billion. The vendor says that’s the largest funding round in security industry history.

This Series D round was led by existing investors Sutter Hill Ventures, Altimeter Capital, D1 Capital Partners and Tiger Global Management. New investors Counterpoint Global (Morgan Stanley), Durable Capital, Franklin Templeton, General Catalyst and XN also participated.

Lacework will use this funding to extend its lead in the cloud security market. It’ll do so by fueling product innovation that expands the company’s total addressable market and pursuing additional strategic acquisitions.

Lacework recently announced its new Soluble solution. It enhances the capabilities of the Lacework Cloud Security Platform.

The vendor will also expand its go-to-market (GTM) strategies, growing its workforce and the company’s presence globally.

Partners Crucial to Lacework’s Go To Market

Radina Mihaleva is Lacework’s senior vice president of corporate and business development.

Lacework’s Radina Mihaleva

“Lacework partners are a key strategic piece of the company’s GTM approach, particularly as we continue to expand our global presence,” she said. “This funding will help Lacework continue to roll out new and improved partner enablement tools globally, make select acquisitions and deliver integrations that improve the ability of partners to address their customers’ needs.”

Mihaleva said Laceworks’ unique approach to security in the cloud is its competitive advantage.

“This funding will help us further that advantage by allowing us to focus even more developing new features and functionality to expand our platform,” she said. “And for our partners, it will help us roll out new tools and programs to better enable them to address their customers’ needs using our platform.”

Partners to Continue Critical Role in 2022

Partners accounted for more than 60% of Lacework’s new business in the third quarter, Mihaleva said. Therefore, partners play a critical role in Lacework’s growth across market segments and globally.

Lacework launched its expanded partner program, Lacework Accelerate, last month.

“The company has a rapidly expanding partner network to help it address new geographic regions and new industry use cases,” Mihaleva said. “Partners will continue to be a major focus for the company in 2022 and beyond as Lacework continues to expand more in EMEA and APAC.”

Mike Speiser is managing director of Sutter Hill Ventures.

“Lacework’s cloud security platform was built in the cloud, for the cloud,” he said. “It’s a fundamentally different and better approach to security that is already dramatically reshaping the security market. We continue to believe this is one of our most promising portfolio companies.”