Whether the business world was ready for it or not, COVID-19 provided the accelerant for organizations of all shapes and sizes to embrace the era of remote work. Almost overnight, the pandemic also forced these organizations to pivot their users and applications to the cloud in order to continue seamless business operations. Securing this new work environment quickly became an essential mandate to ensure a truly safe online experience and keep the business moving forward.
Traditional “detect and response” approaches that have formed the foundation of cyber security investments for the past two decades have largely failed to protect against an onslaught of web and email-based threats. You’re always one step behind, trying to keep up with the latest threats and solve yesterday’s problems. It’s exhausting, it’s costly, and it’s ineffective.
Through it all, I’m proud to say that Menlo Security has been on the frontlines to support our customers every step of the way by providing them with the safest, most seamless internet experience possible. Using a revolutionary approach, we isolate threats completely so users can access the resources they need to keep business operations running smoothly and focus on something besides constant threats. In addition, connecting new populations of remote users has also overwhelmed legacy VPN infrastructure and, by enabling fast direct internet connectivity, Menlo customers experience a superior user experience while reducing VPN consumption and costs.
Since our inception in 2012, we have held the belief that the internet should be safe and seamless for our customers. We pioneered internet isolation to carry out that very mission, and now our isolation-powered cloud security platform is expanding to include a broad set of Secure Web Gateway (SWG) capabilities, including Cloud Access Security Broker (CASB), Data Loss Prevention (DLP), Firewall as a Service (FWaaS), and Private Access, which protects eight of the ten largest banks, four of the five largest credit-card issuers, and many of the largest government and enterprise organizations worldwide.
To continue our expansion and innovation, today we announced a $100M Series E funding round led by Vista Equity Partners. I’m excited to report that, with this new round of funding, our valuation is quickly approaching $1 billion. These additional resources will enable us to meet the accelerating demand we’re seeing for SWG as well as Secure Access Service Edge (SASE) solutions.
Our team is thankful for the support from Vista Equity Partners as well as Neuberger Berman, General Catalyst, JP Morgan, and our other existing investors. We also appreciate the unwavering trust that our partners and customers have placed in us as we build out the only isolation-powered cloud security company that delivers the most secure, zero-trust approach to preventing malicious attacks.
We are especially proud of the close partnerships and value we’re delivering to our customers. To quote one of our long-standing customers: "We've experienced enormous success integrating Menlo into our defense in depth strategy. Menlo's web isolation technology has allowed our organization to protect against advanced web-based client-side exploits while also providing an opportunity to significantly reduce bandwidth utilization. The Menlo team, from top to bottom, has provided outstanding support which was pivotal in helping our organization successfully integrate this solution during COVID-19. Their engineering and development teams were quick to iterate over our feedback and delivered improvements and additional functionality in an efficient manner."
Looking ahead, the entire Menlo team is laser-focused on empowering organizations with the essential cloud security platform needed to outsmart threats and protect productivity. We are securing the ways people work and solving the greatest threat problems for the world’s largest organizations. As an industry, we need to stop accepting “almost secure.” The internet is where work happens, whether it’s in browsers, email, or shared files, and ensuring that this work is not impacted or interrupted by cyber attacks is what we promise to protect now, in 2021, and beyond.
Menlo Security Raises $100 Million in Latest Financing
Vista Equity Partners leads round as demand soars for Secure Web Gateway (SWG) and Secure Access Service Edge (SASE) solutions
Mountain View, CA November 12, 2020—Menlo Security, a leader in cloud security, today announced it has raised $100 million in Series E funding, valuing the company at $800 million. The round was led by Vista Equity Partners (“Vista”), a leading global investment firm focused on enterprise software, data and technology-enabled businesses, with additional participation from Neuberger Berman funds, General Catalyst, JP Morgan, and other existing investors. This new capital will further fuel market expansion and empower the company to scale go-to-market capabilities, as well as provide increased investment in engineering to accelerate product delivery and category expansion.
As businesses of all sizes embrace remote working and migrate to software as a service (SaaS), security is being completely re-architected to combat modern day threats such as phishing and ransomware. Traditional “detect and respond” approaches fail to provide the safety that users and businesses need. Menlo Security’s mission is to make internet use safe, seamless, and effective. The Menlo Security Cloud SWG is an extensible security platform – built on a unique isolation core – that delivers on the promise of cloud security by:
Providing the most effective zero trust approach to preventing malicious attacks;
Offering a seamless experience for end users that allows for safe, uninterrupted work while accessing the internet, SaaS or private applications; and
Removing the significant operational burden for security operations teams.
“In today’s dynamic threat landscape with the rapid growth in connected devices, simultaneous de-centralized network structures, and the widespread embrace of SaaS and cloud-based applications, providing a safe internet experience is more important and challenging than ever before,” said Ryan Atlas, Managing Director, Vista Equity Partners. “Menlo Security has taken a unique approach with Isolation technology at its core that is able to completely neutralize all critical attack vectors of Web and email. We are thrilled to partner with Amir and the team to build on Menlo Security’s tremendous momentum and help catapult the company into their next phase of growth.”
“The internet is where work happens – in browsers, email, shared files and SaaS applications – making these critical business workflows a massive target for malicious attacks,” said Amir Ben Efraim, CEO of Menlo Security. “We are on a mission to empower organizations with the essential cloud security platform they need to outsmart and eliminate threats to protect productivity. This new round of financing and partnership with the Vista team provides us with the means to accelerate our execution capabilities across all dimensions of the business and meet the needs of our global customers as they transition to Zero trust and SASE based deployment models.”
2020 Momentum and Recent Customer Wins
“We are in an unprecedented period of uncertainty and risk. Protecting companies against the onslaught of ransomware, phishing and other cyber-threats has never been more important,” said Rick Smith, Head of Private Investments at JPMorgan. “Menlo Security’s Isolation-powered cloud security platform helps to solve this problem for the world’s top financial institutions, governments and leading enterprises, and provides a unique value proposition in combating top cyber threat vectors.”
Despite market uncertainty in the wake of COVID-19, Menlo Security has maintained impressive momentum, with 155% ARR growth and over 100% increase in average deal size year to date compared to the same period last year. Menlo Security’s customers include seven of the ten largest banks, four of the five largest credit-card issuers and some of the largest energy and critical infrastructure companies in the world. Several notable recent milestones include:
An award with partner By Light Professional IT Services LLCfor a $198.9M, 5-year production Other Transaction Agreement (OTA) by the Defense Information Systems Agency (DISA) for the Cloud-Based Internet Isolation (CBII) Program. According to Bob Donahue, By Light CEO, “This win culminates more than 18 months of working closely with Menlo Security, DISA, and its Mission Partners to shape the commercial application of Menlo’s Global Cloud Secure Web Gateway (SWG) to improve DoD’s information security posture for those entities conducting business across the Internet.”
A new SWG and SASE partnership with VMware. The new VMware Cloud Web Security service will integrate Menlo Security’s best-in-class SWG, cloud access service broker (CASB), data loss prevention, sandbox, and remote browser isolation capabilities natively into the VMware SASE solution. “VMware Cloud Web Security will be sold and supported by VMware, with a single management interface and integrated back end operations, offering customers of all sizes an easy to deploy and ready to use solution,” the company said.
About Menlo Security
Menlo Security protects organizations from cyberattacks by eliminating the threat of malware from the web, documents, and email. Menlo Security's cloud-based isolation platform scales to provide comprehensive protection across enterprises of any size, without requiring endpoint software or impacting the end user-experience. Menlo Security is trusted by major global businesses, including Fortune 500 companies and financial services institutions, and backed by Vista Equity Partners, Neuberger Berman, General Catalyst, Sutter Hill Ventures, Engineering Capital, Osage University Partners, American Express Ventures, Ericsson Ventures, HSBC, and JP Morgan Chase. Menlo Security is headquartered in Mountain View, California. For more information, please visit www.menlosecurity.com.
About Vista Equity Partners
Vista is a leading global investment firm with more than $58 billion in cumulative capital commitments. The firm exclusively invests in enterprise software, data and technology-enabled organizations across private equity, credit, public equity and permanent capital strategies, bringing an approach that prioritizes creating enduring market value for the benefit of its global ecosystem of investors, companies, customers and employees. Vista’s investments are anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions and proven, flexible management techniques that drive sustainable growth. Vista believes the transformative power of technology is the key to an even better future – a healthier planet, a smarter economy, a diverse and inclusive community and a broader path to prosperity. Further information is available at vistaequitypartners.com. Follow Vista on LinkedIn @Vista Equity Partners and on Twitter, @Vista_Equity.
Merritt Group for Menlo Security
For Vista Equity Partners