This story originally ran on PitchBook.
Tanium, which provides cybersecurity services for large companies and government organizations including the US Armed Forces, has raised $200 million at a post-money valuation of $6.7 billion. That makes Tanium the 12th most valuable VC-backed company in the US, per PitchBook data.
The funding comes in what has been a big year for cybersecurity startups: 2018 is on pace to set a decade-high record for VC funding for US-based businesses in the industry. But the spike isn't much of a surprise, as the last four years have also seen significant funding totals:
So far this year, US cybersecurity startups have brought in about $3.3 billion—and $375 million of that is in the form of equity funding for Tanium. The company's current fundraise comes just five months after it raised a $175 million round at a valuation of $5 billion from TPG's growth arm.
Even before the nearly $2 billion bump in Tanium's valuation with its current round, the company's value has been on a steady upward trajectory over the last several years. The business was founded in 2007, and in the first few years of its existence it raised just a few million dollars, reaching a valuation of roughly $50 million in 2011. Starting in 2014, though, the company stepped up its fundraising game.
Here's a look at Tanium's equity funding and valuation history since the beginning of 2014:
- June 2014: $90 million round | $898 million post-money valuation
- April 2015: $64 million | $1.75 billion
- Sept. 2015: $147.5 million | $3.65 billion
- May 2018: $175 million | $5 billion
- Oct. 2018: $200 million | $6.7 billion
Tanium's latest funding round will be used in part to provide early investors and employees with liquidity. The company doesn't necessarily need equity to fund its business activities, as it announced that it was profitable in late 2017. As of January 31, 2018, the business had about $320 million in cash and equivalents, and positive operating cashflow of $25 million.
Wellington Management led Tanium's latest funding, with participation from Baillie Gifford and Adage Capital Management. Other investors in Tanium include Andreessen Horowitz, Citi Ventures and Geodesic Capital.