Everyone in Colorado’s tech industry has been expecting Ping Identity to make a big news this year or next, and the Denver-based network security company has done just that by raising a $35 million growth equity round.
KKR (NYSE: [[ticker:KKR]]), a major international private equity firm, led the financing, and Ten Eleven Ventures joined as a new investor. Existing investors Draper Fisher Jurvetson, General Catalyst Partners, SAP Ventures, W Capital Partners, Volition Capital, Triangle Peak Partners, and Appian Ventures also participated. The round brings the total Ping Identity has raised to $110 million.
Ping Identity will use the money to support its growth and international expansion and also develop its product, the company said in a release. It says it has more than 1,200 customers, including half the Fortune 500.
While it’s big news, it’s not the IPO that some were hoping for. Last year the company raised a $44 million Series F round. Co-founder and CEO Andre Durand said that deal would help set the stage for an IPO that could have come this year, although he also was clear that was a target subject to change given market and industry conditions.
Ping Identity develops cloud-based software that manages identity and network access in what it deems “the post-password era.” The software allows users to access software-as-a-service applications like Salesforce, Dropbox, and Gmail with a single login. Customers like banks and airlines use the software to let their clients use their websites without multiple logins. Ping Identity’s software also helps provide security for connected devices.
The market for IT security is nearly $50 billion, according to Ping Identity, and cloud-based software and identity access management are expected to grow into a large part of that. Ping Identity is one of the largest companies in the space, along with rivals Okta and OneLogin. All three have raised tens of millions in venture capital, and also have impressive client lists. Salesforce and Microsoft also are getting into the sector.
Check out this article for more on the company’s recently released mobile app, its vision for the future, and the competitive market it faces.
“Identity security is hot, and it is a market in the midst of a massive technology shift that will reshape the entire industry,” Durand said. “This funding is further recognition that Ping Identity has built the largest independent identity company, and we are positioned to extend that growth as an enduring, independent company.”
