Contrast Security becomes the next CyberTech unicorn

Contrast Security, a developer of next-gen code security tools, has closed its Series E funding round on $150m, bringing its valuation to over $1bn.

The investment, which was oversubscribed, was led by Liberty Strategic Capital. Contributions also came from existing investors Warburg Pincus, Battery Ventures, General Catalyst, Microsoft’s M-12 Fund, AXA Venture Partners and Acero Capital.

With the funds, the CyberTech company plans to accelerate its global expansion efforts, after it has experienced strong growth in EMEA and APAC. Capital will also enable the company to capitalise on strategic opportunities and acquisitions.

Contrast claims it is the world’s only platform for code security. It added that while companies are accelerating their digitalisation efforts and developers are releasing code faster than ever, code is often being shipped with critical vulnerabilities. Major cybersecurity incidents, such as SolarWinds, highlight how big of an issue this can cause.

Contrast Security CEO Alan Naumann said, “The global economy is running on software applications. We are now seeing business leaders, including Microsoft and Google, commit publicly to spend billions of dollars in order to decrease cybersecurity risks in today’s fast paced application economy.

“Supported by President Biden’s recent executive order, our customers, governments, and many of the world’s largest companies are investing in prevention and resilience against software cyberattacks.”

The Contrast platform is designed to provide companies with secure code. Its clients include BMW, DocuSign, AXA, Zurich, SOMPO Japan, and American Red Cross.

It claims that many companies use first generation tools and manual tests to test and secure their code. This means critical vulnerabilities often slip through. Contrast embeds code analysis and attack prevention into software and is capable of automatically identifying threats.

Fellow security and compliance company Drata is also a new member of the unicorn club. The CyberTech company reached the acclaimed status following the close of its $100m Series B round earlier this week.

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