By Krystal Hu
(Reuters) – Axonius, a startup which help companies manage their cybersecurity infrastructure, said it has raised $200 million at a $2.6 billion valuation, a sizable funding amount in a relatively muted market for growth and late-stage startups.
Founded in New York City in 2017, Axonius’ software helps IT and security teams manage their IT environments, including devices, users, software and cloud services, so they can mitigate threats and manage security risks.
The round, co-led by existing investors Accel and Lightspeed Venture Partners, with participation from Stripes, brings Axonius’ total funding to nearly $600 million, according to PitchBook data.
The startup’s latest valuation is roughly in line with the $2.6 billion valuation it fetched at its last raise in early 2022, despite its revenue growing in double digits annually since then.
The lower valuation multiples shows how investors value startups differently in the new norm in the high interest rate environment where public company valuation shifts.
The company, while unprofitable, plans to use new funding to accelerate growth through acquisitions, as it looks to build out its cybersecurity platform by adding tools that help manage different IT assets, CEO and Co-founder Dean Sysman told Reuters in an interview.
Axonius has said it surpassed $100 million in annual recurring revenue (ARR) in 2023, and boasts over 700 enterprise customers base that includes Schneider Electric and News Corp. The company also works with U.S. Department of Defense service agencies.
(Reporting by Krystal Hu in Los Angeles; editing by David Evans)
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