Summary List Placement
The company, which has raised approximately $160 million to date, said the round has the company at a valuation of $800 million. The round was led by Vista Equity Partners with participation from Neuberger Berman, General Catalyst, JP Morgan, and other existing investors. Menlo Security said the funds would be used to expand go-to-market activities, as well as provide increased investment in engineering to aid a move into new product categories.
Menlo Security’s services are tapping into the growing enterprise interest in the Zero Trust security model. The Zero Trust model of security can help chief information security officers (CISOs) and IT security professionals face the security challenges of remote work.
This model requires verifying a user’s identity and role in the organization before giving them access to only the applications they need for their function. Menlo Security provides user access control, policy management, browser isolation, and network access together, addressing the Zero Trust Network Access (ZTNA) segment of the security services market.
The advantage of ZTNA services for an enterprise is that these security services can be put in place via an easy-to-deploy cloud-based model and allow more fine-grained control of remote user access. One consequence of this approach is that enterprises are expected to phase out use of technologies such as virtual private networks (VPNs) over time. Market research firm Gartner predicts that 60% of enterprises will phase out their remote access VPNs in favor of ZTNA by 2023.
Investment in startups providing cloud-based ZTNA services has also picked up in 2020, in response to enterprise buyers’ needs. Menlo Security is the latest in a line of companies that have received sizable investments this year. The post-lockdown environment for venture investing has seen growing interest in companies addressing security for remote workers:
Perimeter 81 raised a $40 million round in August 2020. The startup has raised three rounds of funding in eight months.
Axis Security has raised two rounds in 2020 so far, totaling $49 million for its agentless approach to ZTNA services.
An upswing in M&A has also occurred in the ZTNA market in 2020, with the following companies having been acquired: Odo Technologies (CheckPoint Software); Preempt Security (CrowdStrike); and Opaq Networks (Fortinet).
We expect IT professionals to invest in more Zero Trust technology solutions in 2020, and less in VPN technology. Our research suggests CISOs have already accelerated their acquisition of Zero Trust technologies throughout this year due to the pandemic. ZTNA services such as those provided by Menlo Security will continue to see strong adoption in 2021 as more firms extend remote working policies well into 2021.
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Source:: Businessinsider – Tech