Landing its second shot of new capital in less than a year, cybersecurity startup Exabeam announced today it secured $75 million in a Series E funding round co-led by new investor Sapphire Ventures and returning investor Lightspeed Venture Partners.
San Mateo, CA-based Exabeam says the cash boost will fund its competitive push in a cybersecurity specialty called SIEM, or security information and event management. SIEM companies make software that captures data streaming from machines, such as network servers and mobile devices, to flag unusual activity that could help detect a cyberattack—or prevent one. It’s a sector with other established leaders, such as Splunk (NASDAQ: [[ticker:SPLK]]), IBM (NYSE: [[ticker:IBM]]), McAfee, Securonix, LogRhythm, and RSA.
Once this mass of data is collected, Exabeam analyzes it using a computer toolbox called UEBA, or user and entity behavior analytics, which compares activity by devices and their users with normal baseline patterns in a hunt for deviations that could signal a threat.
Exabeam’s security services, designed to protect customers’ data centers as well as their cloud-based operations, also include automated incident response and data loss prevention.
The company, founded in 2013, says it has won customers away from San Francisco-based Splunk, founded a decade earlier, as well as from IBM, McAfee, RSA, and LogRhythm.
Exabeam didn’t disclose its revenue. Splunk, for its full fiscal year ending on January 31, reported revenue of $1.8 billion—a 38 percent increase over the prior year—and a net loss of $275.5 million.
Global spending on information security products and services will reach $124 billion in 2019, research firm Gartner estimated in an August report. The SIEM segment of that market was projected to total $4.54 billion in 2019, according to research firm MarketsandMarkets. By 2021, the market for SIEM offerings could grow to $5.9 billion, according to a January 2017 market research report by Technavio.
Back in August, Exabeam raised $50 million in a Series D fundraising round. Returning investors who participated in the Series E funding round announced Tuesday were Aspect Ventures, Cisco Investments, Icon Ventures, Norwest Venture Partners, and cybersecurity investor Shlomo Kramer. The Series E investment brings Exabeam’s fundraising total to $190 million.
Exabeam plans to use its new capital on research to improve its services, and for an expansion of its global sales force.
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