Start-up emerges from stealth with $15.2 million in Series A financial backing
A start-up with an eye toward accelerating enterprise migration to the cloud through automated cloud governance came out of stealth this week bolstered by $15.2 million in Series A funding.
The Lowdown: The founders of New York-based Concourse Labs have cloud experience at such companies as Amazon Web Services (AWS), Google, and Red Hat. The funding round was led by ForgePoint Capital, along with existing investors 83North and Capri Ventures.
The Details: Governance, risk, and compliance (GRC) capabilities are crucial to organizations pushing their digital transformation efforts by moving into the cloud, ensuring scalability, flexibility, and security. By automating the GRC processes and eliminating manual tasks, Concourse Labs is proposing that enterprises can more easily migrate to the cloud by creating a record for policies, identity, and cloud usage, accelerating innovation, improving security, and reducing risk.
The start-up’s offering addresses four key challenges enterprises face when migrating to the cloud:
> Observability, verification, and audit: Companies have an independent and provable record showing its state of compliance – current or historical – at any moment, allowing for accurate reporting to boards, auditors, and shareholders.
> Agile governance: Innovation can be sped up without threatening compliance with corporate policies and controls. Companies can leverage DevOps by allowing developers to deliver code more quickly without security issues.
> Continuous control verification: Organizations can identify non-compliance usage in real time, protecting against shadow IT and cyberattacks.
> Automatic testing of infrastructure-as-code: Enterprises get a verifiable understanding of their risk posture while deploying complex applications to the cloud.
The Impact: Enterprises already were moving more workloads to the cloud, but the coronavirus pandemic has heightened the importance of the cloud as businesses have to manage a highly distributed workforce and operate with most of their employees working from home. According to a report from ResearchandMarkets released this week, the COVID-19 outbreak and subsequent economic fallout highlighted the need for GRC technologies. The global market between 2020 and 2027 will grow 14.1% a year.
The Buzz: “A new approach is needed to enable enterprises to move to cloud with speed and security,” said Don Duet, Concourse Labs’ co-founder and CEO. “We built Concourse Labs with this mission to enable digital transformation with confidence. Obtaining a significant amount of funding from industry-leading investors at this time is a testament to the importance of our goals and the strength of our team and solution.”
“Cloud governance has always been a critical enabler for cloud adoption and COVID-19 has pushed companies to undergo a digital transformation and increase their usage of public cloud,” said William Lin, partner at ForgePoint Capital. “We are excited to partner with a highly experienced team that has a track record in running large businesses and deploying cloud resources at scale with governance, security, and speed in mind.”
“The move to cloud is essential for enterprises to compete and transform in the modern world,” said Michelle Bailey, group vice president, general manager, and research fellow at IDC. “Our data shows us that enterprises struggle to achieve cloud at scale without appropriate investments in governance and management. The typical customer now has about 30% of all applications in a public cloud environment; therefore, the need for observability, risk management, and control is essential. Concourse Labs’ unique solution addresses these major enterprise needs. Being able to help enterprise customers accelerate the investments they have made in their digital transformation journey is the key to accelerating cloud success at scale.”