Playing It Safe: 2014 On Pace for Record VC Invested?
September 12, 2014
Veracode, a software security company, has raised $40 million led by Wellington Management, with participation from existing investors. Veracode's cloud-based, enterprise-grade security technology helps identify application-layer threats across disparate teams and units, utilizing centralized policies and KPIs. The penultimate financing of the company came in 2012, when it raised $30 million at a valuation of nearly $304 million. Existing investors include .406 Ventures, Atlas Venture, Polaris Partners and StarVest Partners, among others. It is rumored that Veracode is considering an IPO as soon as next year.
Veracode's $40 million only adds to what could be a record in venture capital invested in network management software companies this year. With 122 deals thus far, 2014's activity is a little off pace compared to 2013's, perhaps due to rising valuations, but investors have remained quite enthusiastic to the sector as a whole. Recent hacking scandals and widespread security flaws that led to compromise of personal information, such as Heartbleed, have only highlighted how ordinary consumers are at risk. But businesses can also be very vulnerable, accelerating demand for the advancement of network security, and VCs appear eager to back the companies that could capitalize; to see which firms are most active and which companies have garnered the most financings since 2007, click here.