A multinational investment company established by an early co-founder of Facebook (now Meta) has backed Israeli cybersecurity compact Perimeter 81 in its latest funding round of $100 million at a $1 billion valuation, bestowing upon it unicorn status.
Perimeter 81 said Monday that its Series C round was led by B Capital, an investment outfit founded in 2015 by Eduardo Saverin, who also co-founded Facebook alongside Mark Zuckerberg and other university roommates at Harvard University in 2004. Saverin was pushed out of the company early on and then later settled a lawsuit with Facebook and Zuckerberg for an undisclosed amount.
B Capital’s portfolio companies include California-based micro-mobility outfit Bird and Israeli cloud data protection company OwnBackup.
Founded in 2018, Perimeter 81 develops network cybersecurity solutions for enterprises and works with Fortune 500 businesses and industry leaders in a range of sectors. The company says its solutions support decentralized, hybrid workplaces without the “cyber complexity that hurts IT’s ability to defend corporate cloud and on-prem[ises] network.”
Network security is a serious concern for businesses and organizations as ransomware and other malware attacks are on the rise. According to a 2022 report on data breach investigations by Verizon, ransomware attacks have increased by 13% this year.
US Treasury Department data from November 2021 showed that about $590 million in ransomware-related payments were reported to US authorities in the first half of last year, a figure that was 42% higher than the amount reported by financial institutions for all of 2020. The crime involves breaking into an entity’s networks to encrypt its data, then demanding a ransom, often paid via cryptocurrency in exchange for the digital key, to unlock it.
“The rise of remote work, cloud adoption, fiber, and 5G has created a fundamental shift in the network security landscape, leading companies to replace their on-premises network and security appliances with a secure corporate network over the internet,” said Perimeter 81 co-founder and CEO Amit Bareket in a company statement.
“B Capital and other investors embrace our vision to deliver holistic security that is purpose-built for a cloud-first, distributed workforce and share our belief that a secure corporate network over the internet transcends the traditional office environment and is the way of the future,” added Bareket.
The latest capital brings Perimeter 81 total funding raised so far to over $160 million. Additional investors in the Series C round include Insight Partners, Toba Capital, ION Crossover Ventures, Entrée Capital, and publicly traded Spring Ventures. The company last raised $40 million for its Series B round in August 2020 with Insight Partners, Spring Ventures, and Toba Capital.
Perimeter 81 says the fresh funding will help the company’s growth trajectory, and go toward more hiring and development. With headquarters in Tel Aviv and offices in Los Angeles and New York, the company employs about 250 people worldwide.
The company said that year over year, it more than doubled its annual recurring revenue (ARR), a business metric that shows how much recurring revenue a company can expect, but it did not disclose figures. It says it has over 2,000 customers.
Rashmi Gopinath, general partner at B Capital, said that “as the modern workforce has embraced remote capabilities in recent years, concerns around cybersecurity have grown as a major threat to businesses and organizations. Perimeter 81’s highly impactful offering, undeniable performance, and fully integrated solution has enabled about 2,400 businesses to secure their networks.”
Gopinath said Perimeter 81 offers “best-in-class” platforms for Zero Trust Network Access (ZTNA), a service that offers secure, remote access to organizations’ applications and networks, and Security Service Edge (SSE), cloud-based network security services.
B Capital, he said, was looking forward to “partnering with the team in its next phase of growth.”
Israel’s cybersecurity sector is the strongest industry in the local tech ecosystem, with startups raising a record $8.8 billion in 2021.
Overall cybersecurity exports from Israel were estimated at $11 billion in 2021, according to Israeli Export Institute data.