Snyk, a late-stage startup based in Boston that aims to make developers' code more secure, has announced a new mega-round. The round was for $530million, which included $300 million in new capital and $230 million secondary funding. This is to allow employees and early investors to cash in on some of their stock options.
There are many investors on the long list, including strategics, VC firms, and public investors. The round was led by Sands Capital Ventures, Tiger Global, and included new investors Baillie Gifford and Koch Industries as well as Lone Pine Capital and T. Rowe Price. The ride was also enjoyed by existing investors, such as Accel, Addition and Alkeon. Boldstart Ventures. Canaan Partners. Canaan Partners. Canaan Partners. Canaan Partners. Canaan Partners. Canaan Partners.
According to the company, this round brings the total amount raised in funding up to $775 millions, which does not include secondary rounds. Crunchbase data shows that secondary rounds can bring the total to $1.3 billion. The company has been rapidly raising funds (note that the three previous rounds also include the Snyk Money plus secondary rounds).
Although the company would not share exact revenue numbers, it did state that ARR had grown by 158% YoY. Given the confidence shown by this list of investors as well as the valuation, it would seem like the company is making decent cash.
Peter McKay, CEO of Snyk, says that the extra money allows him to make acquisitions when the opportunity arises. This is what many companies refer to as organic growth. We believe that some of the money will go towards inorganic growth. At this point, we have made three acquisitions and each one has been extremely successful. McKay said that it was a muscle we have been working on.
McKay stated that the company began this year with 400 employees and they plan to increase that number by the end. McKay says diversity is something that is always in progress, but he is still working hard on it.
We have been able build many good programs all over the globe to increase diversity. Our culture is inclusive by nature, and we are not even close to being there. This is why I am trying to be clear. He said that there is still much to be done.
McKay claims that today's investment gives him more flexibility to choose when the company goes public. This is because it doesn't need to be due to another fundraising event. We have been able to establish strong relationships with highly-respected public investors and we have the financial resources to choose the timing. He said that we are in control of the timing and will make it happen when it is right.
