Snyk, a provider of developer security technology, has raised $196.5 million in a Series G round of funding that puts the company’s valuation at $7.4 billion.
The new funding comes as Snyk closes out a 2022 in which the Boston-based company doubled its revenue year over year and achieved a net revenue retention rate of more than 130 percent. The company said it now has more than 2,300 customers including AB InBev, Comcast, Dun & Bradstreet, Manulife and Salesforce.
Snyk said the additional financing will fuel the company’s continued growth and product innovation in 2023, allowing the company to enhance and expand its DevSecOps platform both organically and through strategic acquisitions.
“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,” Snyk CEO Peter McKay said in a statement. “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.”ADVERTISEMENT
The Snyk Developer Security Platform is used by application developers and DevSecOps teams to secure software code, dependencies, containers and infrastructure as code, eliminating vulnerabilities and security risks from applications during the development process.
In September 2021 the company raised $530 million in a Series F funding round that the company at the time said put its valuation at $8.5 billion. This year’s economic uncertainty and turbulent stock market have led to reduced values for some IT startups.
The latest funding round was led by QIA (Qatar Investment Authority) and included participation from new investors Evolution Equity Partners, G Squared and Irving Investors as well as existing investors Boldstart Ventures, Sands Capital and Tiger Global.
“As Snyk’s first investor, it’s been incredibly rewarding to see the developer security market mature over the last several years,” said Ed Sim, founder and general partner, Boldstart Ventures, in a statement. “As global enterprises across all industries digitally transform, Snyk is the only solution that equips developer and security teams to find and fix vulnerabilities throughout the entire development process.”
The additional funding comes less than two months after Snyk laid off 198 employees or about 14 percent of its global workforce. McKay said at the time that the company’s restructuring and employee reduction was necessitated by “significant market shifts” and economic uncertainty. The company previously laid off 30 employees in June.
At the time of the cutbacks McKay cited the need to balance revenue growth with profitability: Snyk has set a goal of being free cash positive in 2024.