Israel’s Orca Security raises additional $340m at $1.8b valuation

Singapore-based firm Temasek leads extended Series C round in Israeli cybersecurity startup, founded just 2 years ago

Ricky Ben-David is The Times of Israel’s Startups and Business editor and reporter.

The Orca Security team, March 2021 (Orca Security)
The Orca Security team, March 2021 (Orca Security)

Israeli cybersecurity company Orca Security raised an additional $340 million for its Series C round, the firm said on Tuesday, seven months after nabbing a $210 million investment led by the growth fund of Google’s parent company Alphabet and Redpoint Ventures.

The fresh investment, led by Singapore-based investment company Temasek, boosted the startup’s valuation to $1.8 million, up from $1.2 billion in March when it first reached “unicorn” status just two years after its founding.

CapitalG, Alphabet’s independent growth fund, and Redpoint Ventures also invested in the extended round, as did GGV, ICONIQ Capital, Lone Pine Capital, Stripes, Adams Street Partners, Willoughby Capital, and Harmony Partners.

Orca Security was founded in 2019 by Avi Shua and Gil Geron, both of whom formerly held executive positions at the Israeli cybersecurity giant Check Point Software Technologies.

The startup developed technology that secures the cloud, but it says that unlike competing tools that operate in silos, the firm treats the cloud as an interconnected web of assets, and weighs the risk based on the severity of the attack along with the potential damage it could do to the business.

This does away with “meaningless security alerts” to whittle them down to just the critical few that actually matter, along with an exact pathway to how to fix the breach and the threat. The solution gives enterprises “100 percent visibility and coverage within minutes,” the company says, detecting vulnerabilities, malware, misconfigurations, lateral movement risk, authentication risk, and secret keys among others. The firm’s patent-pending SideScanning technology is the heart of the platform.

Orca Security said in a statement on Tuesday that demand for a holistic solution has helped fuel its rapid growth of 800% year-over-year.

According to Mordor Intelligence, the overall cloud security industry will grow to a market valuation of $37 billion by 2026, as more and more businesses shift activities to the cloud.

“Customers are fed up with agent-based tools that claim run-time protection but de facto are little more than a gimmick, typically reach only a fraction of the environment, and don’t provide the context security teams desperately need to prioritize critical alerts,” said Shua, who serves as Orca Security CEO. “We provide fast agentless deployment, 100 percent coverage of all cloud assets, and automatic prioritization of the alerts that demand quick action.”

According to Mordor Intelligence, the overall cloud security industry will grow to a market valuation of $37 billion by 2026, as more and more businesses shift activities to the cloud.

Orca Security said on Tuesday that it plans to leverage Temasek’s investment portfolio and global network to deepen its operations in the Asia-Pacific region in key industries such as telecom, financial services, transportation, and consumer goods. The startup said it plans to have over a dozen employees in the region by the end of the year.

Temasek has 13 offices across nine countries worldwide and a net portfolio value of roughly $283 billion across its investments.

An Orca Security sales office in London is also in the works, as is a new R&D center, the company’s first outside of Tel Aviv. The company plans to have over two dozen employees in London, also by the end of the year.

Orca Security works with a variety of cloud infrastructure suppliers such as Google Cloud, AWS, and Microsoft Azure.

Shoshanna Solomon contributed to this report.

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