Venture capital-backed software security business Contrast Security has picked up a $65m Series D financing round led by private equity major Warburg Pincus.
Existing investors including Battery Ventures, General Catalyst, Microsoft’s venture fund M12, AXA Venture Partners and Acero Capital also took part in the oversubscribed round.
The new investment brings Contrast’s total funding to $122m.
The company specialises in vulnerability analysis and exploit prevention to protect software applications.
Contrast CEO Alan Naumann said, “Everything about software today is different, from the increased dependence on third-party and open source components, to microservices and API-centric architectures, and complex cloud deployments.
“However, many companies are still trying to rely on 15-year-old legacy security tools for their modern software stacks.
“This approach leaves them with restricted software development capabilities or living with substantial enterprise risk of a data breach.”
Warburg managing director Brian Chang added, “Alan and the team at Contrast Security have built a formidable platform with a next-generation approach to application security.
“Our market research shows that companies around the globe are investing in Digital Transformation and software development initiatives.
“High speed DevOps software and rapid cloud adoption create an enormous security risk if legacy tools are used.
“These mega-trends create a uniquely large opportunity for Contrast Security.”
Earlier this week Warburg brought in a trio of strategic partners amid completing its ILS2.5bn $690m purchase of Israel-based credit card services provider Leumi Card.
Menorah Mivtachim, Clal Insurance & Finance and Allied Group will all hold 5 per cent of the company’s shares, with Menorah and Clal increasing their holdings to 10 per cent each once regulatory approvals have been received.
Warburg said it saw great importance in including key Israeli partners in the investment, which it agreed last July in a buyout from Bank Leumi and the Azrieli Group.
Copyright © 2019 RegTech Analyst
Copyright © 2018 RegTech Analyst
