Cloud security and compliance company vArmour raised $44 million in Series E funding, led by AllegisCyber and NightDragon, with participation from existing investors. This brings its total war chest to $127 million.
vArmour CEO Tim Eades wouldn’t comment on his company’s valuation. But he says the investment puts the 8-year-old startup on track for an initial public offering and profitability within the next 12 to 18 months.
“We were cash positive for the last four quarters,” he said. “This funding is to steer us to full-on profitability.”
When asked if the company plans to go public, he added: “we would love that. We’re going to steer this thing as hard and as fast as we can, and we think the market is ahead of us.”
Eades said that if he asked banks and other potential customers three years ago about moving to hybrid cloud infrastructure, they’d laugh him out of the door. “But particularly in the last two years, the use of public cloud by regulated industries has really accelerated. It’s still in its infancy, but the market is ahead of us.”
vArmour developed API-driven security technology it calls Conform that enables continuous compliance across hybrid environments. It bridges security and compliance policy requirements between public and private clouds, which means IT and security teams don’t have to manually apply compliance rules to their disparate environments.
In addition to developing its technology, the company will use this latest funding round to grow its service provider business and other channels, Eades said. “Our channels, as they become even more cloud native, can leverage service providers and helps us take it to market,” he said. “Our Conform technology, which is driving consistent compliance regardless of the infrastructure, is a value proposition that works for the channels, it works for our investors, and it should work for the market.”
Bob Ackerman, founder and managing director at AllegisCyber, said business multi-cloud deployments make it “nightmare for security and IT pros to provide consistent security controls across cloud platforms. vArmour is already servicing this need with hundreds of customers, and we’re excited to help vArmour grow to the next stage of development,” he said in a statement.