Wall Street bank Goldman Sachs Group Inc has anchored the $47.6-million Series B funding in Australian cybersecurity startup Secure Code Warrior, in what is touted as the largest-ever US investment for a cybersecurity business in Australia, according to a company announcement.
Existing investors AirTree Ventures and Paladin Capital Group and new investors ForgePoint Capital and Cisco Investments also participated in the funding round that will finance Secure Code Warrior’s global expansion initiatives, ongoing product innovation, and the establishment of new operations in the US and Singapore.
The funding round followed Secured Code’s $3.5-million Series A funding in 2018, which was backed by Paladin Capital Group and AirTree Ventures. Its seed round in 2017 was led by London-headquartered NCSC Cyber Accelerator
Founded in 2015 by Pieter Danhieux and Matias Madou, Secure Code Warrior provides an online secure coding platform that supports nearly 30 programming languages and frameworks. It delivers more than 3,500 training modules that cover more than 140 different software weaknesses.
The founders said security breaches resulting from previously known software vulnerabilities continue to rise as organisations around the world increase their reliance on software. These breaches impact both individuals and organisations. This situation has to stop, according to Danhieux.
“Secure Code Warrior’s vision is to make developers the first line of defence by making security highly visible and providing them with the skills and tools needed to write secure code from the beginning,” he added.
The startup said its platform uses a mix of gamification techniques to aid learning and increase adoption across an organisation. It supports both modern and legacy softwares that are in use by major companies around the world.
Goldman Sach’s interest in Secure Code Warrior comes as the Australian cybersecurity industry is valued at $4.1 billion, according to CyberCX. Meanwhile, the global market reached $116.5 billion in 2018 and is growing at an 11-per cent CAGR in the 2019-2025 period, according to a report by Grand View Research.
In October, Australian private equity firm BGH Capital backed the formation of CyberCX, which is consolidating 12 local cybersecurity brands to create Australia’s largest, dedicated cybersecurity organisation.
The brands are Alcorn, Assurance, Asterisk, CQR, Diamond, Enosys, Klein&Co., Phriendly Phishing, Sense of Security, Shearwater, TSS and YellIT. More organisations will be announced in the near future.