Skybox Security, an American-Israeli global leader in security analytics, has raised $96 million from Providence Strategic Growth (PSG), an affiliate of Rhode Island-based private equity firm Providence Equity Partners.
Skybox had previously raised $22.8 million in 4 rounds from Benchmark, Carmel Ventures, Lightspeed Venture Partners, Mitsubishi UFJ Capital, Rembrandt Venture Partners, Susquehanna, Valley Venture Capital and Robert Thomas, according to CrunchBase. Some of the company’s shareholders have sold a controlling stake in Skybox for $80 million to PSG, which has invested an additional $16 million in the company, said Globes.
Mark Hastings and Thomas Reardon, managing directors with PSG, will join the Skybox board of directors. “Skybox is on the leading edge of a security segment that’s highly relevant right now, given the high-profile network security breaches that have occurred at numerous large enterprises,” said Reardon.
Skybox develops powerful software solutions that extract insight from cybersecurity data to give unprecedented visibility of an enterprise’s attack surface, the ways in which its IT systems are vulnerable to threats. The company was founded in Israel in 2002 by Gidi Cohen, CEO, Moshe Maiseles, and Eran Reshef. It is headquartered in San Jose, Calif., and has its development center in Herzliya Pituach, Israel. The company has 120 employees, half of them in Israel, according to Globes.
“This deal is a great validation of our strategic vision for the company, the success of our technology in the market and our ability to execute,” said Cohen. “We’ve been on an incredible upward trajectory, and the investment will accelerate that growth.”
Despite billions of dollars spent annually on cybersecurity tools and services, the time required to resolve a cyberattack continues to increase. This is compounded by the increasing complexity of networks with thousands of potentially exploitable attack vectors, leaving security professionals struggling to discover areas of highest risk and prioritize mitigation and remediation actions. CISOs are also searching for ways to properly evaluate strategic options and convey the potential business impact of emerging threats to senior executives and the board.
The Skybox Security Suite solves these problems by integrating with more than 90 networking and security tools in use by enterprises today. The Suite utilizes advanced analytics, such as modelling and simulation, to extract relevant and actionable intelligence from the silos of data created by those tools, giving security leaders the most comprehensive view of their attack surface and the insight needed to quickly make informed decisions about where to direct security resources.
According to recent analysis, IDC estimates that the security and vulnerability management market alone will reach $6.5 billion in 2018 and continue to grow at a rate exceeding 10 percent.
In four years, Skybox has grown its acquisition rate of new customers by 220 percent and revenue by 221 percent. In 2015, the company increased year-over-year sales by 55 percent, fueled by a 59 percent increase in deals valued more than $100,000 and a 165 percent increase in deals valued more than $500,000, says the company.
Skybox customers are Global 2000 companies and government agencies, in more than 50 countries and nearly every industry. The company’s products are used by six of the top 10 global banks, 10 global telecommunications firms, five of the world’s largest consumer goods manufacturers and 10 of the largest energy providers globally.
Providence Equity is a global asset management firm with $45 billion in assets under management across complementary private equity and credit businesses. The firm pioneered a sector-focused approach to private equity investing with the vision that a dedicated team of industry experts could build exceptional companies of enduring value. Since the firm’s inception in 1989, Providence has invested in more than 150 companies and is the leading equity investment firm focused on the media, communications, education and information industries. The firm is headquartered in Providence, Rhode Island, and also has offices in New York, London, Hong Kong, Singapore and New Delhi. PSG targets investments in lower middle market technology-enabled service companies primarily in North America.