Cloud native network detection and response (NDR) specialist ExtraHop has announced it has secured $100 million in growth capital from both new and existing investors.
Expected to close in early 2024 subject to customary closing conditions, the investment follows a strong performance in 2023 for the Seattle-headquartered company, which saw it reach approximately $200 million in annual recurring revenue (ARR) through a combination of new customers, innovation, and strategic partnerships.
The figure represents a doubling of the firm’s ARR over the last few years, ExtraHop said.
In an announcement, Greg Clark, CEO of ExtraHop and managing partner at Crosspoint Capital Partners, said the additional funds will help the business drive further growth.
“ExtraHop is poised to be one of the next revolutionary businesses in this new era of cyber security, and this new infusion of capital will help the company build on its recent success and scale to new heights," he said.
“ExtraHop is committed to building upon its heritage of developing groundbreaking technology to help customers better manage and mitigate their cyber risk. We believe this investment will further accelerate the company’s roadmap as it delivers essential tools to combat today’s modern threats.”
ExtraHop’s recent success has been fueled by uptake of its Reveal(x) platform, as NDR has become an increasingly important element within the cyber security stack.
The firm’s offering serves up 360-degree visibility to help organizations automatically detect rogue and unmanaged devices, detect late stage attack activity through machine learning (ML), and remediate threats.
Recently, the company moved to help improve defense against domains generated by algorithm (DGAs), as well as malware and botnet operations, by open sourcing its 16 million row data set. Reveal(x) also now boasts CrowdStrike Falcon Intelligence embedded within the platform.
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Chris Kissel, research vice president at research firm IDC’s Security and Trust section, said NDR is increasingly gaining popularity among analysts, investors, and enterprises.
“As more organizations adopt zero trust and XDR strategies to build business resilience, it’s become evident that these critical cybersecurity measures are impossible to execute without NDR,” he commented.
“360-degree network visibility offers unmatched opportunities to reveal the cyber risks hiding in IT environments and keep operations running.
“The Reveal(x) platform from ExtraHop helps customers do just that, and the success ExtraHop has experienced to date further solidifies this notion.”
ExtraHop leadership shakeup
Alongside its latest investment, ExtraHop has also made a brace of key leadership changes as it looks to continue its growth into the new year.
Cyber security veteran Marc Andrews takes the position of chief revenue officer (CRO), having previously led global sales at both Symantec and Blue Coat Systems.
Andrews is also a Crosspoint Capital Operating Partner and has worked with the organization’s other companies to drive sustainable and profitable growth. ExtraHop said the appointment will add further go-to-market, alignment, and strategy implementation experience to its leadership team.
The company has also added key experience in corporate strategy and product development, with Kanaiya Vasani joining the business as chief product officer.
Previously, Vasani held the role of executive vice president of products and corporate development at Infoblox, where he is credited with scaling the company’s security business.
