Pandemic helps drive demand for company’s AI-based cybersecurity platform
SentinelOne, the fast-growing cybersecurity vendor whose-cloud native platform aims to protect such assets as endpoints and Internet of Things (IoT) devices, continues to bring in investor money, most recently raising $267 million in its latest round of fundraising.
The Lowdown: The Series F funding, announced this week and led by Tiger Global Management, drives SentinelOne’s valuation to more than $3 billion.
The Details: The Mountain View, California-based company has expanded its artificial intelligence (AI)-powered Singularity XDR Platform beyond endpoint protection to full extended detection and response (XDR) that protects endpoints, IoT devices, containers, and cloud workloads.
The protection of such assets has become even more important in the highly distributed business world that has come into play during the COVID-19 pandemic, with millions of remote employees leveraging an array of endpoints while working from home and companies relying more on cloud services to support and protect their decentralized environments.
SentinelOne’s autonomous platform is designed to give organizations a more complete view of its IT network and to quickly respond to threats.
The Impact: The global public health crisis has fueled a surge in coronavirus-related cyberattacks worldwide. International law enforcement agency INTERPOL in August warned of the rise in such attacks, which included phishing and fraud campaigns, malware – including ransomware – malicious domains, and misinformation. In addition, the agency said that such attacks will continue to grow and phishing efforts will likely spike once a COVID-19 vaccine becomes available.
Background: SentinelOne, founded in 2013, has now raised almost $730 million over the past seven years. The company in February announced $200 million in funding – which pushed its valuation past $1.1 billion – and that came eight months after a round of $120 million. The latest round also included contributions from Sequoia Capital Global Equities and existing investors, such as Insight Partners and Third Point Ventures.
The company has seen its retention rate grow to 125% and 77% of customers subscribe to multiple modules from its platform.
The Buzz: “We have set the standard for AI-powered cybersecurity for the new normal,” SentinelOne co-founder and CEO Tomer Weingarten said. “Cloud, container, and IoT technologies are empowering today’s distributed workforce. A cohesive view of the entire enterprise network and a real-time autonomous security layer across all connected assets is required to protect people, businesses, and their data, wherever they are. Our platform solution delivered via the cloud is purpose-built to secure and operationalize today’s enterprise data everywhere it resides.”
“The past eight months have been an inflection point in our business across the globe,” SentinelOne COO Nicholas Warner said. “The demand for flexible technology that can stand alone — without requiring services and staff — will only continue to increase as the threat landscape evolves. Our ease of deployment and autonomous remediation has made us the go-to solution to replace other next-gen products at scale.”
“After leading SentinelOne’s Series A financing over six years ago, Tiger Global is excited to further deepen our partnership with Tomer and SentinelOne’s world-class team by leading this round as the company prepares for its next chapter,” said John Curtius, a partner at Tiger Global. “It is a unique point in time in the company’s journey and the future looks bright.”
“Innovative solutions in cloud-delivered cybersecurity have proven invaluable to the modern enterprise,” said Patrick Fu, managing partner at Sequoia Capital Global Equities. “SentinelOne has demonstrated all the characteristics of an industry-defining technology pioneer and we are thrilled to partner with this talented team for the long term.”
“Today’s cybercriminal takes full advantage of the expanded attack surface afforded through the shift to predominantly remote work environments,” said Teddie Wardi, managing director at Insight Partners. “SentinelOne had the foresight to design and deliver a cloud-native autonomous platform solution far ahead of its time. It’s this vision and ability to execute that provides us confidence that SentinelOne will continue its growth trajectory and realize its potential as one of cybersecurity’s next great companies.”
“As a long-time investor, we’ve witnessed SentinelOne’s core technology and growth strategy elevate the company from startup to one of cybersecurity’s most sophisticated and promising privately held companies,” said Rob Schwartz, managing partner at Third Point Ventures.