Snyk raises $196.5m at $7.4b valuation

Snyk founders credit: Snyk
Snyk founders credit: Snyk

Qatar Investment Corp. led the investment in the Israeli-US cybersecurity company, which fired 15% of its workforce earlier this year.

Israeli-US cybersecurity company Snyk has announced the completion of a $196.5 million Series G financing round, at a $7.4 billion valuation. This is only 12% below the valuation of $8.5 billion achieved in the company's most recent financing round when the company raised $300 million in September 2021.

The financing round was led by the Qatar Investment Authority (QIA) with participation from new investors Evolution Equity Partners, G Squared and Irving Investors as well as existing investors boldstart ventures, Sands Capital and Tiger Global.

The company is headquartered in Boston and led by CEO Peter McKay with Israeli founders Guy Podjarny (president), and Assaf Hefetz stepping aside while cofounder Danny Grander left the company in May and has become a serial investor. Founded in 2015, Snyk has developed a platform that identifies security breaches and open source licensing management issues for code and takes effective action.

The latest funding comes after Snyk cut 228 employees earlier this year in two rounds of layoffs, out of a total workforce of 1,400.

McKay said, "In 2022, I’m proud that Snyk achieved a 100% year-over-year increase in revenue as well as net revenue retention of over 130%. 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. 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."

Revenue figures were not disclosed but website "The Information" has revealed in the past that at the time of the company's most recent financing round in September 2021, annual recurring revenue was $100 million, up 40% from 2020.

Snyk said that rapid customer adoption has brought it more than 2,300 customers including: AB InBev, Comcast, Dun & Bradstreet, Manulife and Salesforce.

QIA CEO Mansoor Ebrahim Al-Mahmoud said, "QIA is delighted to lead this round to drive the further growth of Snyk, the established leader in developer security," said Mansoor Ebrahim Al-Mahmoud, CEO, QIA. "We’re confident that Snyk’s proven approach and offerings, efficient financial growth and seasoned executive team position the company for a successful future and is aligned with QIA’s track record of supporting innovative companies shaping the future of the global economy."

Published by Globes, Israel business news - en.globes.co.il - on December 13, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Snyk founders credit: Snyk
Snyk founders credit: Snyk
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