LogRhythm, a cybersecurity platform that detects and subsequently prioritizes the “neutralization” of online security threats, has closed a $50 million financing round led by existing investor Riverwood Capital, with participation from Adams Street Partners, Siemens Venture Capital, Delta-V Capital, EDBI, Exclusive Ventures, Silver Lake Waterman, and the LogRhythm management team.
Founded out of Boulder, Colorado in 2003, LogRhythm offers companies a security intelligence and analytics platform that automates the process of detecting and responding to cyber threats, both internally and externally. The company had raised more than $75 million before this latest round, meaning its total funding now sits at around $125 million, and this latest cash boost will be used to “accelerate its leadership and competitive differentiation in the briskly growing market for rapid threat detection and response solutions,” according to a press release.
“We’re in the early stages of a fundamental market shift,” explained Andy Grolnick, president and CEO of LogRhythm. “Organizations around the world recognize that advanced detection and response capabilities need to be at the core of their cyber security strategies, and IT security budgets continue to shift in this direction from a traditionally prevention-centric set of priorities.”
Bumper year for cybersecurity
Cybersecurity is one of the hottest categories for investment in 2016. Last month, Texas-based StackPath raised $150 million shortly before Virginia-based PhishMe nabbed $42.5 million and SafeBreach closed down a $15 million round.
Other notable cybersecurity investments in recent months include Cylance, which attracted $100 million for its A.I.-driven security platform; Bay Dynamics, which secured $23 million for its risk analytics platform; Post-Quantum, which swallowed $8 million; Darktrace, which raised $65 million; and SecurityScorecard, which drew in $20 million.
Across the board, tech companies are investing big in cybersecurity through acquisitions, while others are considering the reported future shortage in cybersecurity experts — some estimates suggest that the industry could be short around 1.5 million personnel by 2020.