Cybersecurity startup Bugcrowd has raised more than $100 million in fresh funding which will help the California-headquartered firm to hire new staff internationally and to finance potential takeovers.
CEO Dave Berry confirmed the raise of $102 million, which was led by General Catalyst, with existing investors Costanoa Ventures and Rally Ventures also playing an active role.
Berry’s team confirmed in an email to QA Financial that the 12-year-old crowdsourced cybersecurity firm is eyeing further expansion around the globe.
“New funds will accelerate our growth across EMEA, APAC, and thee U.S., both organically and through M&A.”
Dave Berry
Record year
Although Bugcrowd declined to disclose its current valuation, Berry did say that the firm’s revenues have by close to 40% in the last twelve months alone following the launch of a new channel program that pulled in dozens of new clients to join the company’s distribution network.
2023 was a record year for Bugcrowd as it signed up around 200 new clients, including Rapyd, and ExpressVPN.
Also, new security offerings further boosted the revenues of Bugcrowd, which has made a name for itself via its bug bounty program, which enables companies to hand out rewards for identifying issues and bugs in public-facing codes. In short, developers receive cash once a bug is identified and confirmed as such.
International expansion
The fresh capital will help the company to hire 100 new workers, on top of its current 350 employees. These hires will mostly take place outside the US.
The firm has previously hinted it is eager to increase its revenue share from non-US sales, which currently stands at only 30%.
Berry emphasised that strategy.
“The infusion of new funds will drive continued innovation on the Bugcrowd platform and accelerate our growth across EMEA, APAC, and the U.S., both organically and through strategic M&A opportunities,” he wrote.
Currently, Bugcrowd serves about 1,000 customers around the world, with clients including OpenAI and T-Mobile. Close to 70% of all of the firm’s revenues are generated across North America.
The firm’s strategy is unwavering, Berry stressed.
“Our Pen Test as a Service (PTaaS) business surged by nearly 100%,” he wrote, adding that ‘customers have tangibly improved their security postures through Bugcrowd’s Bug Bounty and Vulnerability Disclosure Program offerings.”
Management team
Following the investment, Mark Crane, Partner at General Catalyst, and Paul Sagan, a Senior Advisor at General Catalyst, will join Bugcrowd’s Board of Directors. Sagan will also take on the role of Board Chair.
Joining the firm’s advisory board are Jeff Simon, Chief Security Officer at T-Mobile, and Prabhath Karanth, Vice President and Global Head of Security and Trust at Navan, serving alongside David Fairman, CIO & CSO – APAC at Netskope.
New Board Chair Sagan, said his appointment comes “at a critical juncture for the company, marked by substantial growth and market expansion, along with a rapidly expanding team comprising industry leaders and a community of top-tier hackers.”, I look forward to providing ongoing support as Bugcrowd enables a new era of cybersecurity.”
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