BCV Invests In Sysdig’s $350M Series G, Continuing Our Long-Term Support Of The Open-Source Cloud Security Leader

Enrique Salem
Dec 15, 2021 · 3 min read

By Enrique Salem, Partner at Bain Capital Ventures

When BCV first invested in Sysdig in 2013, the enterprise software world was moving quickly to the cloud and containers, and the Sysdig founding team understood that securing and monitoring containers would be critical. Today, Sysdig announced a $350 million Series G funding round at a valuation of $2.5 billion and BCV is proud to be a long-term continued investor in this groundbreaking company.

Sysdig empowers organizations to confidently secure the cloud by providing real-time threat detection and one-click remediation. Security teams use Sysdig to detect and respond to runtime threats, and continuously manage configurations, permissions, vulnerabilities and compliance for containers, Kubernetes, and cloud services.

The company has become the market leader in unified cloud and container security, now partnering with all the major cloud providers including Amazon Web Services, Google Cloud Platform, Microsoft Azure, IBM Cloud, Red Hat, and SUSE Rancher. And the market for cloud security continues to grow. According to Gartner, by 2023, 70% of enterprise workloads will be deployed in the cloud, up from 40% in 2020.

As someone who has spent my career running and investing in security companies, I haven’t seen a market opportunity this big in at least a decade. The last major market shift was endpoint detection and response (EDR), but cloud and container security takes a major leap forward from EDR, moving security off enterprise servers into the cloud itself.

With data breaches becoming a constant threat to companies of all types — from retail and finance, to education and insurance — the need to secure data in the cloud has become more critical than ever. But with threats shifting all the time, cloud security platforms need to adapt and evolve quickly, and Sysdig does this by leveraging open-source standards.

Built on open-source tools beloved by the global developer community, Sysdig benefits from crowdsourced security policies and contributors who report issues, contribute features, and fix bugs. An open-source foundation means Sysdig is based on a standard and is more secure than a proprietary “black box” solution, as contributors are constantly monitoring and improving the platform.

Clearly, Sysdig is onto something. Their customers not only love the product, but once they start using it, they upgrade quickly to deploy more enterprise features. In their most recent quarter, Sysdig reported annual net revenue retention of 149%. With around 700 enterprise customers, and an ARR of over $875,000 across its top 50 customers, Sysdig has shown it can scale to the largest cloud and container environments.

In today’s high-risk environment, organizations want a security solution that allows them to stay ahead of potential breaches, getting a unified view of risk across the cloud and containers with no blind spots. Sysdig gives companies the confidence to deploy cloud apps faster, helping them grow quickly. Sysdig saw the future back in 2013 and they’ve executed brilliantly on their vision to move security into the cloud. Everyone at BCV can’t wait to see what’s next for Sysdig and we’re confident they’ll be here for the long haul.

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