Local software supply chain company Codenotary has new funding to fuel product development and customer adoption.
Codenotary, which is based in Bellaire, said it raised $12.5 million in Series B capital from new and returning investors, including Swiss investment firm Bluwat AG, French venture capital firm Elaia and others.
Codenotary develops tools for maintaining software supply chain integrity and identifying vulnerabilities at scale. The firm is capable of processing millions of on-premise or cloud-based transactions with cryptographic verification.
Using proceeds from the Series B round, Codenotary plans to invest in product development and to expand its sales and marketing efforts with customers around the globe. The company, led by CEO Moshe Bar and CTO Dennis Zimmer, said it currently serves more than 100 customers.
Bar said that the SolarWinds supply chain hack in 2020, as well as the more recent Log4j vulnerabilities, have brought security and supply chain concerns front-and-center. He cited President Joe Biden's May 2021 executive order on protecting the nation's cybersecurity, which calls for providing purchasers a Software Bill of Materials: a formal record with the details and supply chain relationships used in developing software.
"Now, within just the last two or three months, everyone wants and needs to provide a Software Bill of Materials to prove the legitimate provenance of their software and, more importantly, the ability to instantly identify untrusted components such as Log4j in their deployments," said Bar.
The firm also develops an open-source, immutable ledger database, Immudb, which is able to track changes in large and sensitive databases.
"Codenotary offers a solution which allows organizations to quickly identify and track all components in their DevOps cycle and therefore restore trust and integrity in all their myriad applications," said Pascal Blum, senior partner at Bluwat.
Following a $5.5 million Series A financing round in 2020, Codenotary has raised $18 million in total funding to date.
Before starting Codenotary, Bar previously co-founded Qumranet Inc., which developed a desktop virtualization platform for enterprise clients. Qumranet was acquired by software company Red Hat Inc. for $127 million in 2008. Before Qumranet, Bar co-founded hypervisor software company XenSource, which sold to Citrix for $500 million in 2007.
