With the continuous rise of cloud computing and the increasing number of hack attacks in the past few years, cybersecurity has become a major concern for both governments and businesses. This concern has caused organizations to significantly increase their expenditure on tools and resources that protect them from cyber crimes, resulting in a boom in the cybersecurity industry. Analysts who track the industry project that the market for cybersecurity products and services will grow from $75 billion in 2015 to $175 billion by 2020 . One of the firms that is all set to capitalize on this massive opportunity in the cyber space is the highly secretive data center and cloud security company vArmour.
On Tuesday, the California-based company announced that it has raised $41 million in a Series D funding round led by Redline Capital, Telstra, and other strategic investors. Including this round, the company has till date raised $83 million from several investors including Highland Capital Partners, Menlo Ventures, Columbus Nova Technology Partners, Citi Ventures, and Work-Bench Ventures.
“We are solving real problems for real people. vArmour is now segmenting and protecting critical data for some of the largest national infrastructure and financial institutions in the world. “We have proven that our product and model are extremely effective, cost efficient and scalable, and this new round of funding and investment from global distribution partners will propel company growth,” Tim Eades, CEO of vArmour, said in a statement released by the company.
Telstra: Investor + Strategic Partner
According to technology news website TechCrunch, apart from being an investor Telstra will also act as strategic partner for vArmour. The Australian telecommunication giant will be soon launching a new partnership with vArmour to sell data center security services in Asia Pacific.
Mark Sherman, managing director at Telstra Ventures, stated, “The move to multi-cloud requires a completely different approach to security. We are very excited to be investing in vArmour, as we believe they sit at the forefront of this rapidly growing market. With vArmour’s distributed security system that delivers massive scale, coverage and control that agent or traditional perimeter-based solutions cannot support, the company is in a great position to help customers realize the full potential of multi-clouds.”
Reasons For Raising Funds
According to vArmour’s press release, it went for the Series D funding round because it needed capital for ‘global expansion and to accelerate worldwide software distribution of its Distributed Security System (DSS) through strategic partners in Asia-Pacific, EMEA and in North America.’ However, while speaking with two financial publications recently, Mr. Eades gave each of them a different reason regarding why the company needed to raise funds right now.
According to Mr. Eades, startups will find it difficult to raise capital in the future if Republican nominee Donald Trump ended up becoming the next president of the United States. “If the rhetoric doesn’t change a little bit, it’s going to be a very interesting fundraising climate. You will see people just pushing things onto the balance sheet and sitting and holding it,” CNBC quoted him as saying.
While speaking with Fortune magazine , Mr. Eades said that one of the reasons he was interested in raising funds right now was because the global economy could possibly see negative repercussions in the coming days due to the uncertainty surrounding the upcoming vote in Britain, which will decide whether the country will continue to remain a member of the European Union.