ArmorCode, a leading cybersecurity platform, has recently secured $40 million in a Series B funding round led by HighlandX, with significant participation from NGP Capital, Ballistic Ventures, Sierra Ventures, and Cervin. This latest investment brings ArmorCode’s total funds raised to $65 million. The company plans to utilize the funding to enhance its go-to-market strategies, expand its product and engineering teams, introduce new AI and software supply chain capabilities, and extend its reach into the European market.
Key Takeaway
ArmorCode has secured $40 million in a recent funding round to fuel its efforts in consolidating security data and revolutionizing vulnerability assessments in the software industry. With plans to expand into Europe, introduce new capabilities, and enhance its product and engineering teams, ArmorCode is set to make significant strides in the cybersecurity landscape.
The Vision Behind ArmorCode
The brainchild of co-founder and CEO Nikhil Gupta, ArmorCode aims to tackle the emerging security challenges resulting from the proliferation of software releases without proper vulnerability assessments. Gupta recognized the urgent need for security teams to address critical risks across the organization, as software vulnerabilities are being exploited at an alarming rate. To address this growing concern, ArmorCode consolidates vulnerability data from connected apps and software infrastructure into a single location, providing standardized and actionable insights for analysis.
Prior to launching ArmorCode, Gupta served as the CEO and co-founder of Avid Secure, which was later acquired by Sophos in 2019. Additionally, Gupta played a vital role in co-founding The Purple Book Community, an esteemed network of security leaders dedicated to sharing best practices and case studies related to software security challenges.
The Rising Demand for Cybersecurity Solutions
The surge in software exploit attacks and the subsequent rise in demand for defensive solutions have prompted a robust growth in cybersecurity spending. Ethical hackers discovered over 65,000 vulnerabilities in 2022 alone, representing a 21% increase compared to the previous year, as reported by HackerOne. As a result, global spending on information security is projected to experience double-digit growth between 2017 and 2024, according to Statista.
ArmorCode’s Unique Approach
ArmorCode differentiates itself by specializing in surfacing vulnerabilities within an enterprise’s software and infrastructure, including containers and public and private clouds. By offering role-specific dashboards, the platform provides a comprehensive view of potential vulnerabilities and offers threat intelligence tools that score risks and suggest mitigation strategies. Moreover, ArmorCode’s dashboards include targeted training for both security teams and individual team members.
While competitors such as ProjectDiscover, Socket, and Legit Security also offer tools and platforms to identify security threats, ArmorCode has successfully carved out a niche for itself. The company has experienced a 400% customer base growth within the past year, catering to numerous large enterprises across industries such as media and entertainment, hospitality, healthcare, consulting, and finance.
Expansion Plans and Workforce Growth
Capitalizing on its recent accomplishments, ArmorCode intends to expand its operations into Europe and explore new product areas. The company plans to increase its current workforce of approximately 110 employees by 20% before the end of 2023. As Gupta emphasizes, ArmorCode’s founding amid the pandemic was driven by the realization that the need for software security would become more critical with the acceleration of digital transformation.
