Cybersecurity Startup Axonius Secures $58M Series C Seven Months After Last Raise

New York-based Axonius, a 3-year-old cybersecurity asset management startup, announced it has closed on $58 million in Series C funding.

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Lightspeed Venture Partners led the round, which included participation from existing investors OpenView, Bessemer Venture Partners, YL Ventures, Vertex and WTI. The financing brings Axonius’ total raised to date to $95 million since its 2017 inception, and is nearly triple the amount of its last funding round. This latest financing comes just seven months after the company raised a $20 million Series B led by OpenView in August 2019. The company declined to reveal its current valuation.

Dean Sysman (CEO), Ofri Shur (CTO), and Avidor Bartov (Chief Architect) founded Axonius with the goal of giving organizations a comprehensive asset inventory, uncovering security solution coverage gaps and automatically validating and enforcing security policies. Axonius integrates with over 200 security and management solutions, and is deployed “in minutes,” according to the startup.

“Despite the amazing, high-tech tools available to IT and security teams today, organizations still struggle with understanding what devices and cloud workloads they have, what is installed on them, who has access and whether they meet the overall security policy,” Sysman told Crunchbase News.

Axonius says it addresses such challenges by giving organizations the ability to automatically gather all the data around devices, cloud workloads and users to give full context so customers can do things such as get a comprehensive asset inventory without scanning their network or installing agents on devices. The company also works to help organizations understand whether all their assets adhere to or deviate from a given security policy or framework.

Growth

The company, which has a research and development office in Tel Aviv, says it more than doubled its customer count in 2019, leading to record revenue growth of 910 percent. It has also grown its current headcount to 90 employees, compared to 35 a year ago. Customers include The New York Times, Schneider Electric and Anheuser-Busch InBev, as well as startups such as AppsFlyer, Twilio and Coupa.

The new capital will be used to scale company growth and expand its cybersecurity asset management platform offerings. Sysman said the goal is to eventually go public as an independent cybersecurity asset management platform.

“Axonius has enjoyed exponential growth by solving a real problem, taking away manual work and letting security and IT teams focus on what’s important,” he said. “We’re here to stay, and to build a formidable company.”

For Lightspeed Venture Partners General Partner Arsham Memarzadeh, the issue of asset discovery and management is paramount.

“You can’t protect a device if you don’t know it exists,” he said. “Axonius integrates into any security and management product to show customers their full asset landscape and automate policy enforcement. Their integrated approach and remediation capabilities position them to become the operating system and single source of truth for security and IT teams.”

Illustration: Li-Anne Dias