Bugcrowd raises $102 million in Series E funding to grow its crowdsourced cybersecurity platform

Bugcrowd, a 12-year-old crowdsourced security startup that helps companies enhance their security measures through its bug bounty program, has secured $102 million in Series E funding. The round was led by General Catalyst, with participation from existing investors Rally Ventures and Costanoa Ventures. The company declined to disclose its valuations.

Bugcrowd, originally founded in Australia but now based in San Francisco and Sydney, plans to use the new capital infusion to expand its workforce, grow internationally, and potentially make strategic acquisitions, according to CEO statements reported by Reuters.

Bugcrowd started its journey in Australia back in 2012. The company provides a crowdsourced security knowledge platform that acts as a bridge between hackers, security researchers, and organizations, the most popular of which is via its bug bounty program.

CEO Dave Gerry revealed that Bugcrowd experienced a significant revenue increase of over 40% in 2023. This growth was attributed to the successful launch of a channel program that added 40 partners to the distribution network, along with the introduction of new security services. Although specific revenue figures were not disclosed, Gerry clarified that the company has not yet reached the $100 million annual revenue milestone.

With the new funding, Bugcrowd also plans to expand its workforce by 100 employees, adding to its current staff of 350. They’re particularly interested in international expansion, considering the United States currently contributes about 70% of their revenue.

In addition, Bugcrowd is also eyeing potential acquisitions within the security services sector. The company serves approximately 1,000 clients worldwide, including notable names like OpenAI and T-Mobile.

Gerry said the company’s focus on rebuilding its management team over the past year, aiming to maximize value for clients and the hacker community, and realizing the business’s full potential. He took on the role of CEO in November 2022.

“We’ve spent the last 12 months or so rebuilding the management team,” said Gerry, who took the helm in November 2022. “The goal is to continue to drive value for clients and for the hacker community, and get the business back to fulfilling the potential that we know we have.”