ArmorCode Inc., a Palo Alto cybersecurity company, raised a $40 million Series B funding round.
The company announced Monday the round, led by HighlandX, a fund managed by Highland Capital Partners, will go toward expanding teams across the company and bolstering its go-to-market efforts.
"Today, every company is a software company, and the imperative for faster software delivery has unfortunately come at the expense of security," said Nikhil Gupta, the company’s CEO, in a news release. "At ArmorCode, our fundamental belief is that organizations should not have to sacrifice security for speed, which is why we break down security silos and automate security workflows."
ArmorCode gathers data from connected applications and software infrastructure to analyze the data and consolidate it in a single location for enterprise software. Dashboards from the company's platform provide training opportunities for security teams and individualized trainings as well.
The round’s funds will also help the company add new AI and software capabilities and expand partnerships in Europe, among other geographies, LingRaj Patil, vice president of marketing at ArmorCode, told the Business Journal in an email. The company already has partnerships with Shutterfly Inc., Snap Finance LLC and Snapdocs Inc., among others.
According to a report by HackerOne Inc., a San Francisco-based cybersecurity company, security professionals discovered over 65,000 vulnerabilities in 2022, which is up 21% from 2021.
Additionally, cybersecurity spending is expected to exceed $166 billion this year and continue growing by more than 10% annually over the next five years, according to an industry report by Statista. Come 2028, the industry is expected to reach more than $273 billion in annual revenue.
Besides the backing from HighlandX, the Series B round has participation from NGP Capital, Ballistic Ventures, Sierra Ventures and Cervin Ventures. Existing backers in the company include Z5 Capital and Tau Ventures, among others.
Prior to founding ArmorCode, Gupta was the CEO and co-founder of Avid Secure Inc., a cloud security company that was acquired by Sophos Ltd. in 2019. Gupta also helped launch The Purple Book Community, a collective of security leaders who share practices and ideas to better secure software.
Gupta is also a member of the Forbes Technology Council.
This round brings the company’s total funding to $65 million since its founding in 2020, according to a news release. The company was last valued by investors at $63 million in 2020, according to PitchBook Data.
Separately, Corey Mulloy, a managing partner at HighlandX, will join ArmorCode’s board of directors.
Mulloy has been with Highland for 27 years and has made investments in companies such as Bitwise Asset Management Inc., Everly Health Inc. and GoodRx Inc., among others. He has overseen eight companies exit via initial public offerings and 20 through mergers and acquisitions, according to Mulloy's LinkedIn profile.
Bay Area Inno reporter Sara Bloomberg contributed to this report.
