Container security startup Sysdig scores $70M in late-stage funding round

Sysdig, a container security startup that enables companies to securely run cloud-native workloads in production, said today it has secured a massive $70 million in Series E round of funding that brings its total capital raised to $206 million. The round was led by Insight Venture Partners, with a participation from previous investors Bain Capital Ventures and Accel and new investors Glynn Capital and Goldman Sachs.

Sysdig will use the funds to extend market presence and leadership in enabling enterprises to confidently run cloud-native workloads in production. The Sysdig Platform addresses both DevOps security and IT operations spaces. IDC forecasts the worldwide DevOps software tools market will reach $15 billion in 2023

Founded in 2013 by Loris Degioanni, the San Francisco, California-based Sysdig offers two main products designed to secure container environments, which are used to host modern software applications that can run on any platform. They include a “cloud native intelligence platform” based on two open-source projects it leads: its namesake “Sysdig” forensics platform and the “Sysdig Falco” security project. The software is meant to secure deployments of application containers.

“Containers and Kubernetes development is disrupting the way organizations deploy and run containers, but when you look at the history of major technological changes, Kubernetes is still early. We invest in high-growth companies that are disrupting the old way of doing things, companies that will lead this decade-long transition. Sysdig’s novel approach of providing a single source of truth for both security and monitoring for container-based applications has proven more effective, more scalable, and higher ROI,” said Richard Wells, Managing Director at Insight Partners.

“As a customer, we are impressed with Sysdig’s technology and the company’s open source approach to security. We look forward to Sysdig joining our investment portfolio and seeing their continued growth as a leading Kubernetes security vendor,” said Soumya Rajamani, Vice President of Merchant Banking at Goldman Sachs and Sysdig Board Observer.

Kubernetes is the de facto operating system of the cloud; however, as organizations move workloads into production, security and visibility are the biggest barriers. Traditional tools and processes leave enterprises blind because they do not provide visibility with application context for these environments. To reap the benefits of the agility that containers and Kubernetes provide, enterprises need an approach that integrates security and compliance into DevOps workflows. This approach is often referred to as secure DevOps or DevSecOps.

“Containers and Kubernetes will take over the world. Over the last year, we have seen competitors partner in an attempt to deliver capabilities similar to ours, but the reality is, these approaches cannot provide the level of visibility and security that we can, even when they use multiple tools. As Kubernetes adoption increases, CISOs will continue to recognize that their IT teams and security tools need to adapt. In 2020, we look forward to partnering with more Global 2000 organizations in their cloud-native journeys,” said Suresh Vasudevan, Chief Executive Officer at Sysdig.

The Sysdig platform is open by design, with the scale, performance, and usability enterprises demand. Sysdig is used by some of the largest companies for their cloud-native security and visibility.