Snyk snags $196.5 million Series G as valuation falls 12% to $7.4 billion
Snyk snags $196.5 million Series G as valuation falls 12% to $7.4 billion
Less than two months after laying off almost 200 employees, the cybersecurity unicorn closed its latest funding round at a reduced valuation
Cybersecurity unicorn Snyk announced the closing of a $196.5 million Series G investment at a $7.4 billion valuation, a drop of 12% from the $8.5 billion valuation it received when it raised $300 million in September 2021.
The new funding was led by QIA (Qatar Investment Authority) and included participation from new investors Evolution Equity Partners, G Squared, and Irving Investors, as well as existing investors boldstart ventures, Sands Capital, and Tiger Global. It comes on the back of the lay off of 198 of its employees in October, reducing its headcount by 14%. Snyk also laid off 30 people in what it called an ‘organizational change’ back in July. The company said at the time that the changes were being made in order to accelerate its plans by a full year to become free cash flow positive in 2024.
“In 2022, I’m proud that Snyk achieved a 100% year-over-year increase in revenue as well as net revenue retention of over 130%,” said Peter McKay, CEO of Snyk. “In this challenging macroeconomic environment, it is more critical than ever for global enterprises to increase their developer productivity and be able to continue their pace of innovation securely. In 2023, we look forward to leveraging this latest investment to continue enhancing our platform and help more global enterprises reap the benefits of DevSecOps.”
The new investment takes Snyk’s total funding to date to around $1.2 billion, including secondary deals.
Snyk was founded in 2015 by Israelis Assaf Hefetz, Danny Grander, and Guy Podjarny. The company's security product is aimed mainly at developers, providing a solution that finds and fixes vulnerabilities and license violations in open-source dependencies and container images. It raised $530 million at an $8.5 billion valuation last September, a mere six months after receiving $300 million at a $4.7 billion valuation. Snyk had employed around 1,300 people prior to the layoffs. Most of the company’s employees are based in the U.S., with less than 100 employees working from its Israel office.
