US-based cybersecurity startup Snyk, founded by Israeli entrepreneurs, said it raised $196.5 million from investors in a Series G funding round at a lower company valuation of $7.4 billion.
The financing round, led by Qatar Investment Authority, was joined by new investors Evolution Equity Partners, G Squared and Irving Investors as well as current investors Boldstart Ventures, Sands Capital and Tiger Global. In a previous funding round, back in September last year, the startup raised fresh capital at a valuation of $8.5 billion.
Founded in 2015 by Israeli entrepreneurs Guy Podjarny, Assaf Hefetz, and Danny Grander, Snyk helps software developers and companies integrate security solutions into their workflows as they are building applications from code to cloud to protect them against sophisticated cyber attacks.
The funding round comes as Snyk has been eyeing an initial public offering over the past year targeting a market value of more than $8.6 billion, Bloomberg reported last December. The startup was said to have been speaking to banks to get ready for a listing as soon as mid-2022.
The latest investment will “drive noteworthy product innovation, allowing the Snyk team to enhance and expand, both organically and inorganically via strategic acquisition, its industry leading Developer Security Platform,” the startup said in a statement.
“In 2022, I’m proud that Snyk achieved a 100% year-over-year increase in revenue as well as net revenue retention of over 130%,” stated Snyk CEO Peter McKay. “In this challenging macroeconomic environment, it is more critical than ever for global enterprises to increase their developer productivity and be able to continue their pace of innovation securely.”
“In 2023, we look forward to leveraging this latest investment to continue enhancing our platform and help more global enterprises reap the benefits of DevSecOps,” McKay added.
Back in October this year, McKay told employees that the startup is restructuring and reducing its global workforce by 14% due to the continuous headwinds facing the global economy. As part of the streamlining process, Snyk laid off 198 employees and announced spending cuts in key areas such as global real estate footprint, IT and subscription services, and business travel.
The latest funding round takes the total capital raised by the startup to about $1.55 billion. Its backers include Coatue Management, BlackRock Inc., Alphabet’s GV, Salesforce Ventures, and Canaan Partners.
Snyk, which attained unicorn status in 2020, is used by more than 2,300 customers worldwide, such as Asurion, Google, Intuit, MongoDB, New Rel, and Salesforce, according to the startup’s website.