Temasek leads $550m round for US-based cloud security firm Orca

Orca Security's co-founder and chief executive Avi Shua. Source: Orca Security.

Singapore state investor Temasek Holdings has led a $550 million extended Series C round for Los Angeles-based Orca Security, bringing the cloud security provider’s valuation to $1.8 billion. 

Other investors that participated in the financing include US hedge fund Lone Pine Capital and Splunk Ventures, the venture arm of data analytics firm Splunk. 

Orca first drew interest from Temasek a few months ago after closing the first tranche of its Series C round in March, its chief executive and co-founder Avi Shua told DealStreetAsia. The company had then raised $210 million in the round, which valued it at $1.2 billion.

Orca will use part of the proceeds from its latest round to expand in the Asia Pacific, which currently generates 20% of its revenue. It counts Hitachi Solutions and Japanese buy now, pay later firm Paidy, which was recently acquired by PayPal, as clients.

Having a long-term investor such as Temasek on its cap table with a wide network, especially in the Asia Pacific, will be beneficial for Orca on its growth journey, Shua added.

Orca plans to open offices in Japan, Australia, and Thailand in the next two to five months. It plans to hire around two dozen employees – mostly security and cloud infrastructure engineers – in the region by the end of 2022.

The cloud security company also plans to expand in the UK and the rest of Europe as well as the Middle East.

Founded in 2019, Orca claims it is able to protect cloud infrastructure built on platforms such as Amazon Web Services, Microsoft Azure, and Google Cloud within minutes and without companies needing to install software or network scanners. Typical cybersecurity software installations are “invasive,” can take months and cause delays, Shua said.

Orca charges its customers on the number of employees using its services. It has grown its revenue 800% year-on-year and achieved unit economics profitability although it is not profitable at the moment, Shua said.

One of Orca’s backers is CapitalG, a growth fund of Google’s parent Alphabet. Given that Orca protects Google’s cloud programme, funding from the tech giant has allowed the smaller firm to sell its product and access customers with Google.

Cybersecurity spending has increased amid rising digitalisation and remote working. Gartner predicted that worldwide spending on information security and risk management technology and services will grow 12.4% to reach $150.4 billion in 2021. 

Spending on cloud security will grow by 41.2% – the largest growth of all market segments, although it is also the smallest segment – to $841 million this year from $595 million in 2020. 

Orca was founded in Israel but is now headquartered in Los Angeles. Its $210 million round was led by CapitalG and Redpoint Ventures, with participation from existing investors GGV Capital, ICONIQ Growth and angel syndicate Silicon Valley CISO. 

Orca’s Series C round came followed a $55 million Series B round last December, and a $20.5 million Series A round in May last year. Orca competes with the likes of cybersecurity giant Palo Alto Networks, which threatened to sue Orca last year after the latter published a video comparing the two companies’ products. 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.