Cybersecurity software firm Darktrace closes funding in round led by KKR

Darktrace, a provider of enterprise cyber-security threat defence software, has raised new growth equity financing, led by KKR with participation from repeat backer Summit Partners, and new investors TenEleven Ventures and SoftBank-affiliated SB ISAT Fund.

Darktrace – which is headquartered in Cambridge, UK and San Francisco – has offices in New York, Auckland, London, Milan, Mumbai, Paris, Singapore, Sydney, Tokyo, Toronto and Washington D.C.

Han Sikkens, managing director at Summit Partners stated: “Darktrace has shown outstanding technology innovation and sales momentum since we partnered with them. Its Enterprise Immune System technology has been adopted by some of the most respected and cyber-conscious companies the world over.”

Invoke Capital first identified Darktrace’s differentiated approach to cybersecurity threats and funded the firm in 2013.

Darktrace will use proceeds from the investment to accelerate the global roll-out of its cybersecurity product.

Also Read: Singapore: Hubspot opens APAC regional office in city-state; Singtel launches cybersecurity institute 

Founded in 2013, Darktrace states that it has achieved over 600 per cent revenue growth in its last financial year, with over 1000 customer deployments.

The company closed a $65 million investment at a valuation in excess of $400 million, according to a report from TechCrunch. According to media reports, proceeds from the investment will fund global expansion and further research and development.

Its clients include global financial institutions, telecommunications networks, legal firms, retailers, technology companies, government organizations, and critical national infrastructure facilities.

Nicole Eagan, CEO of Darktrace, commented: “Securing the backing of another leading global investor like KKR is an important milestone for Darktrace and a strong validation of the technology we have developed.”

Also Read: EY: Cybersecurity threats major concern for global corporate sector

Market context

Cybersecurity-Yearly-Funding-Trends

A CB Insights report notes: “Cybersecurity is increasingly a hot sector for investment, as more valuable information migrates to digital channels and the cloud, and corporations continue to suffer high-profile data breaches.”

Based on CB Insights data, cybersecurity startups have experienced consistent year-over-year (YOY) growth in funding and deals since 2011, which saw 166 deals. Meanwhile, 2015 saw 332 deals. In dollar terms, investment grew from $1.1 billion to $3.8 billion, which is 235 per cent growth over 5 years.

Cybersecurity-Deals-Geo

In terms of geography, cybersecurity deals were skewed heavily toward the US (77%), followed by Israel (7%) and other countries, such as the UK (3%) and Canda (3%), followed by India and China.

Based on data compiled by CB Insight, as of August 2015, corporates were highly active in their investments into cybersecurity, with an increasing percentage of the deals focused on Series B financing rounds, with the overall investment led by Intel Capital, Google Ventures and Qualcomm Ventures as the three leading corporates in the space.

Also Read: Corporate cybersecurity a pressing global matter: Lance James

Public-private cybersecurity agendas must converge to improve online security

Singtel acquires cybersecurity firm Trustwave for $810m

Drone industry growth threatened by cybersecurity & privacy concerns: Lloyd’s

Japan Digest: Trillium gets Series A led by Global Brain; Triple W raises $3.9m