Cloud security startup Expel bags $40 million to accelerate innovation and expand cloud offering

Expel, a cloud security startup that provides transparent managed security, has raised $40 million in Series C funding to expand its cloud monitoring capabilities, accelerate product innovation and fund additional sales and marketing programs. The funding round, which brings the combined total of $67.5 million to date, was led by Index Ventures with participation from Battery Ventures, Greycroft, NEA, Paladin Capital Group and Scale Venture Partners. Shardul Shah, partner at Index Ventures will join Expel’s board of directors.

Founded in 2016 by Dave Merkel, Justin Bajko, and Yanek Korff,  Expel provides transparent managed security, on-prem and in the cloud. It’s the antidote for companies trapped in failed relationships with their managed security service provider (MSSP) and those looking to avoid the frustration of working with one in the first place.

Expel is flipping today’s inefficient managed security model on its head to create a technology-driven approach that’s supported by smart people (not the other way around). The company offers 24×7 monitoring through its security operations center-as-a-service, integrating the security tools customers already use into its proprietary technology. Expel then helps customers make better, faster decisions about security issues by giving them real answers and specific recommendations instead of repackaging customers’ alerts and tossing them back in their laps. Expel also offers practical advice on how to prevent issues from happening over and over again.

“Expel is the only managed security provider that can demonstrate ROI to customers within minutes of turning on the service, not months,” said Shardul Shah, partner at Index Ventures. “Expel’s technology-first, transparent approach to managed security is the best solution for managing security risks in the cloud age.”

“There are some fundamental beliefs we have here at Expel, and one of those is that people are really good at two things: using judgment and building relationships,” said Dave Merkel, CEO and co-founder of Expel. “Having a security operations center full of people chasing loads of alerts isn’t the way to ‘do security’ in the 21st century. Expel’s technology-first approach allows CISOs and their teams to stop playing a game of alert whack-a-mole and focus on managing the risks unique to their business.”