We have some exciting news to share today — we’ve raised a $26 million Series C round!
This round was led by Triangle Peak Partners, with participation from all current investors as well as new investors Hostplus and First State Super. In the 5 years since our founder and CTO, Casey Ellis drafted the business model on the back of an airline napkin, Bugcrowd has raised $50 million and grown to a global organization of more than 120 highly motivated and committed team members.
We are thrilled to welcome Dain DeGroff, Triangle Peak Partner, to the Bugcrowd Board of Directors given his experience in helping security companies grow and with SaaS-enabled marketplaces. This is a big milestone for our team, so I’d like to take this time to reflect on our new-found partnership with Triangle Peak Partners and our plans for the future.
We know that attack surfaces and the creativity of cyber attackers are growing faster than the availability of traditional defenders and capabilities of traditional tools – creating an asymmetric battle for organizations. Despite rapidly changing business needs, most organizations continue to use the same legacy tools and strategies to secure their digital assets. Nearly half (47%) of companies use traditional Web Application Security solutions that take a reactive approach, while 66% of organizations use Penetration testing, which doesn’t always provide the breadth and depth of latest security knowledge required to secure their organization’s products. Nearly 55% of companies report using web scanners as part of their standard toolkit, even though scanners are limited to what they’re programmed to find.
Despite all of this investment in security, we continue to see breaches increase in number and scale. At the same time, the resource constraints security teams face are growing. By 2020, there will be about 1.5 million unfilled cybersecurity positions. Organizations find themselves in a situation where they have to make compromises, for example, between efficiency and quality if they stay with the status quo.
At Bugcrowd, we help our customers move beyond the status quo. From the very beginning, we have been leading the charge in transforming the cybersecurity landscape. By combining the world’s most experienced team of security experts and the market’s only enterprise-grade crowdsourced security platform, Bugcrowd connects organizations to a global crowd of trusted security researchers to identify vulnerabilities—before adversaries do.
In talking with several different investor groups over the last few months, we quickly realized Triangle Peak Partners would be a great fit at this stage in our company’s growth because of their belief in the market for crowdsourced cybersecurity, our business model, and strong product-market fit. Right now, we are looking at a $4.5 billion market opportunity. Bugcrowd uniquely delivers a unified approach to our key markets, defining a core around security intelligence, powered by the crowd.
Triangle Peak looks for transformational technology in their investments and strong product-market fit. To address the security needs of customers’ continuously growing digital footprint, Bugcrowd provides a comprehensive, intelligent, data-driven platform for orchestrating the collective creativity of the global security community to prevent cyber attacks.
Triangle Peak invests in leadership both from a personnel and markets perspective, and we prioritize leadership at every level of the company, whether its product, marketing, sales, operations or engineering. Our stellar customer relationships, (such as Square, FitBit, Credit Karma, Concur) and deep researcher commitment, speak for themselves. It’s not often that you find an investing group that is this great of a fit, sharing the same ideals and goals – a group who will think creatively about our business and build trust as we continue to work together and bring this innovation to market.
Our Series C funding will allow us to accelerate our product innovation efforts, scale our team to meet the incredible demand we are seeing in the marketplace, and build business and government partnerships in order to drive change in the cybersecurity landscape.
We have an amazing team at Bugcrowd and we need more great talent to achieve these bold objectives. We plan to grow our team significantly over the next year. If you’re interested in helping us level the cybersecurity playing field, I invite you to take a look at our Careers page.