San Francisco-based API security startup Traceable AI has raised $60 million (around Rs 457 crore) in a new financing round, valuing the startup at more than $450 million. The Series B round saw participation from Institutional Venture Partners (IVP), Tiger Global Management, and existing investors Unusual Ventures and BIG Labs.
Founded in 2020 by AppDynamics and Harness founder Jyoti Bansal and former AppDynamics VP of Engineering Sanjay Nagaraj through a $20 million Series A raise in July 2020.
Traceable AI says it provides an API security platform that discovers, manages, and secures APIs against malicious attacks and provides rich analytics to perform threat hunting, so businesses can make the right decisions regarding API security posture.
"Widespread use of APIs in cloud-native applications has led to a significantly larger attack surface, intensifying the challenge of protecting these APIs from malicious usage or abuse," said Jyoti Bansal.
With this round of funding, the API security startup plans to shift its focus towards accelerating its next phase of growth by further investing in its product development and research efforts, expanding its sales and marketing teams, and expanding global sales.
"Bad actors only need one API entry point to access an organization's data and cause irreparable financial, reputational, and service interruption damage. Traceable AI applies the power of machine learning and distributed tracing to truly understand how an application works in the context of the business, and therefore, be able to detect anomalies and block threats to keep customers secure and resilient against next-gen attacks," Bansal said.
By leveraging the team's expertise in distributed tracing and observability, Traceable AI claims it is the only API security platform that discovers, manages, and secures APIs for enterprise-level organizations.
Informatica, Bullish, Digital Ocean, Zolve, and Houwzer, are some of its notable clients. The startup also many large finance firms utilize its distributed tracing technology to secure their cloud-native applications.
"As we know, all businesses are run by software. Given that APIs are the core engine of any software model today, it's imperative that we secure them to protect the business", said John Vrionis, partner at Unusual Ventures. "We are extremely excited to be a part of the Traceable team and their continued efforts to help enterprises secure their most important software asset – APIs."
“We want to detect and respond to breaches in the shortest time possible,” said Pathik Patel, Head of Cloud Security - Informatica, "Traceable AI deploys across any environment, whether it’s your cloud, Kubernetes, or traditional virtual machines. Knowing how our applications behave as a part of API discovery is what created the win for the Traceable AI team at Informatica.”
"API security has become a major security and compliance concern for most companies," said Steve Harrick, general partner, IVP. "Traceable offers a fundamentally differentiated solution that provides coverage across the full DevSecOps software lifecycle — from API development and testing to runtime protection. The company is led by Jyoti Bansal and Sanjay Nagaraj, proven entrepreneurs who we have been fortunate to work with before. They listen to customer needs and know how to deliver software at scale."
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