Exciting news for the Netskope team today as they announced a new investment of $340M led by Sequoia Capital Global Equities.
Much is talked about “Digital Transformation” in today’s world, and when thinking about transforming digitally, business leaders often think about the applications they are using or how they are moving to the cloud.
This obsession with the cloud does not strike us as surprising:
- 85% of enterprise web traffic is now generated by cloud services
- The average enterprise now uses 1,295 cloud services
- This year more compute power will have been deployed by cloud providers than ever sold or used in enterprise data centers, ever in history.
Those stats give us a hint of how enterprises are leveraging external applications in building their businesses. Cloud is one of the top three investment priorities for most top-performing organizations.
Why should enterprises think about security while transforming digitally?
In the cloud age, data flows like water. While security spending is growing by double digits, breaches are not slowing down.
- 67% of global enterprises have been breached
- 42% of enterprises breached had already been breached in the past
The reason is that digital transformation isn’t necessarily being led by IT. In fact, in most cases business units and users have adopted cloud applications without oversight of their IT teams. An alarming 95% of the 1000+ cloud applications used by enterprises are unsanctioned. This means outside IT teams´ oversight.
Once organizations allow their teams to use cloud applications like Slack or SalesForce and authorize the use of personal mobile devices or working remotely, they are moving to the cloud. Employees are the ones transforming their organizations. Corporates need to rethink their security strategy in order to guarantee a successful digital transformation.
“The adoption of cloud infrastructure and applications is a reality being accelerated by markets and businesses going digital. Such inevitable transition exposes users and organizations to a new reality of risks. Data and systems which were restricted to usage within corporates’ perimeters become more accessible in case of cyber attacks and governance flaws. The connectivity and the language being used are no longer a barrier to avoid hackers. Therefore — beyond the constant monitoring — preemptive risk analysis, investment in security solutions and a security-based architecture planning are essential to guaranteeing security during the digital evolution journey.” — Adriano Volpini, Head of Corporate Security | Itau Unibanco.
Our investment in Netskope
We initially partnered with Sanjay Beri and the Netskope team in 2018. Ever since, we have closely observed the execution of their vision.
“When we started Netskope in 2012, it was clear that the cloud was changing everything, but few say how it would disrupt security. Since inception, we have always focused on architecting a true cloud platform that, over time, will secure and govern all of an enterprise´s traffic as the perimeter evolves into a new high-performance worldwide cloud edge”. – Sanjay Beri, Founder and CEO | Netskope
Given Netskope’ s trajectory and cyber security developments, most opportunities are still being created and Netskope is leading the way. Netskope is the single private player in the top quadrants of Gartner and is the only player capable of delivering a complete cyber security solution for the cloud era.
As far as our ability to help the company expand into Latin America, we are thrilled to see that a few of the largest enterprises in the region — including major financial institutions and retailers — choose Netskope.
Therefore, in addition to our initial investment, we are participating in the current U$340 million financing round led by Sequoia Capital that valued Netskope at nearly $3 billion.
To the Netskope team: thank you for allowing us to be part of your journey.
To our investors: thank you for your continued support.