Cycode raises $56 million Series B for software supply chain security solutions
The new funding comes just six months after the Israeli cybersecurity company raised a $20 million Series A
Israeli cybersecurity company Cycode, which develops software supply chain security solutions, announced on Tuesday a $56 million Series B round led by New York-based global private equity and venture capital firm, Insight Partners. YL Ventures, a global VC firm specializing in Israeli cybersecurity investments, who led Cycode’s seed investment, also participated in the round. The funding comes on the heels of Cycode’s $20 million Series A funding in May of 2021. This round brings the total investment to $81 million.
Cycode was founded in 2019 by CEO Lior Levy, a former Solutions Architect at Symantec, and serial entrepreneur Ronen Slavin, who serves as the company’s CTO. Cycode's product secures DevOps pipelines and provides full visibility into enterprise development infrastructures, protecting source code from the risk of theft, leakage, and manipulation. Cycode employs around 50 people in its offices in Tel Aviv and the U.S. and intends to hire 70 additional staff in the near future.
Cycode team. Photo: Nicky Truk
Since it first began selling in 2020, the company has acquired dozens of customers, ranging from large Fortune 500 enterprises to rapidly growing startups, including Grubhub, Databricks, Copart and Rapyd. In just the first three quarters of 2021, Cycode increased ARR 7x.
“We are seeing recently more and more attacks on software supply chains,'' said Lior Levy, co-founder and CEO of Cycode. “This funding round will allow us to continue and lead this market and develop our product.”
According to the European Union Agency for Cybersecurity, supply chain attacks are expected to increase 400% from 2020 to 2021. Furthermore, Gartner predicts by 2025, 45% of organizations worldwide will have experienced attacks on their software supply chains, a three-fold increase from 2021.
“What’s so exciting about this company is the comprehensiveness of its vision for SDLC security,” said John Brennan, Partner at YL Ventures. “From day one, Cycode’s approach has supported a vision that surpasses anything that currently exists in the space, making it one of the fastest growing AppSec companies in the industry. This is the kind of platform solution that CISOs envision when aiming to solve big problems with robust solutions.”