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Mark up another unicorn and large funding round for the cybersecurity diligence : Kiteworks , which builds creature to secure email communications , file sharing and situations where people ferment with sensible data point , has arouse $ 456 million from Insight Partners and Sixth Street Growth . The investment values the fellowship at over $ 1 billion .
It ’s a notable development for the San Mateo - based startup , which was formerly know as Accellion and suffered a major data breachin 2021 . That incident , come to to legacy services , impacted at least 300 organizations , let in Morgan Stanley , the University of California , Kroger and Shell .
Today , Kiteworks is extend strong : It has been profitable for the past two age , and its tools serve 100 million end users and more than 3,650 globular enterprises and governing government agency .
This investment comes at a clip when IT breaches continue to plague users and organizations . But the funding surroundings overall for startups remains challenge .
That has ensue in well - performing cybersecurity company shape up as consolidators . Wiz earlier this twelvemonth raised $ 1 billion toscoop up modest players , and Kiteworks has similar design .
Kiteworks enunciate it will be using the money in part to make acquisitions .
“ We have a pretty aggressive M&A scheme that we started about a twelvemonth - and - a - one-half ago to two years ago , ” chief strategy officer Tim Freestone said in an interview . “ This will help fund the continuation of that scheme into the next four years . ”
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Since 2022 , Kiteworks has acquire four smaller initiative inauguration . It will also be using funds for hiring , R&D and business ontogenesis , he added .
The cybersecurity industry has been grade by a very speedy , prolific profusion of startups — partially because the threats that are being addressed constantly evolve , and so enterprising technologists want to pursue those opportunity . Arguably , Kiteworks present the other side of the cybersecurity news report .
The company has been around as a privately accommodate mental process for more than 20 long time , so it ’s not quite a “ inauguration ” in the classic sense .
And while a lot of the attention in recent years has been around areas like cloud , web / base and program surety , Kiteworks ’ nidus has been on data , specifically how to secure sensitive data , regardless of whether it is on - premises , in a swarm , or somewhere else entirely — like a line of information enter in a mannikin on the web .
“ We ’re finally at the datum stratum as an industriousness , and so that ’s helped us , ” state Freestone .
One of Kiteworks ’ unique merchandising points has been its specific approach to handling sensitive data as part of what it call a private content internet , or PCN ( not to be confused with the other PCN in infosecurity , which stands forprocess control mesh ) . Government organizations , or those that desire to supply those organization , involve to adhere to a strong stratum of information shelter compliance .
Kiteworks exact it is the “ only security platform authorized by FedRAMP ” in the U.S. supply support for bodily process like file communion , file transfer and email communication theory to contact those abidance requirements . Some of its solution are creative : a DRM tool that make a document seem like the “ real ” one to a recipient , but is in fact a facsimile — this ensures that most data never leave the firewall of the sender .
“ This investment reinforces Kiteworks ’ role in tackling the challenge of managing sensible data , ” said Jonathan Yaron , chief operating officer and chairman of Kiteworks ( pictured below ) . “ We ’re eager to quicken our emergence and go on innovating to meet our customer ’ evolving needs . ”
Insight Partners and Sixth Street Growth ’s co - investment is coming as a mix of primary and secondary shares in the ship’s company . The company is not disclosing the proportions of primary to junior-grade , butPitchBook datafrom other July notes that the first tranche of the full heart and soul , intend as growth capital , was $ 228 million .
Insight , which has put more than $ 4.5 billion into cybersecurity investments ( include in Wiz ) , consider now is the moment for Kiteworks to repeat down .
“ With the rise in third - party cybersecurity terror and stringent regulative requirement , Kiteworks has a great market chance in front of them for both organic and inorganic emergence , ” said Eoin Duane , managing director of Insight , in an e-mail to TechCrunch . “ Customers have it away the Kiteworks PCN — there ’s substantial outgrowth within the existing client base , and as data security continues to become more important , the company is well - positioned to draw in newfangled client . ”
