We’re sharing the news that we’ve closed a $35M Series C funding round. This financing is the largest in our company’s history and almost double our combined previous capital raised. All of our existing investors, Sequoia Capital, Greylock Partners, and Sutter Hill Ventures, participated in the financing and were joined by new investors Glynn Capital, Cisco, Evolution Equity, Lumia Capital, Mohr Davidow Ventures, and Northgate Capital.
Looking at this in the context of the evolution of the enterprise security space, I want to share a few reasons we decided to raise this round and why I think it’s important for us to be investing in OpenDNS right now.
First – Security needs to be delivered as a service, and OpenDNS’s cloud-delivered solutions are unique in their capabilities and impact in doing that. We’re in a new age of enterprise computing, where people work and access the Internet outside the office, use cloud applications, store their data in the cloud, and are increasingly on mobile devices, many of which are owned by individuals, and not the enterprise. As a result, the old ways of installing desktop AV and sticking a security appliance at the edge of your network are no longer effective. Enterprises need a 24×7, always-on security solution that doesn’t impact performance or annoy their employees. We’ve built just such a service, and while it currently provides security to 50 million people and more than 10,000 enterprise customers, we have a long way to go.
Second – We are finding security threats other security vendors aren’t. Because we have more than 50 million daily active users and see so much Internet traffic, we’re able to analyze it and do truly predictive security. Our security labs are full of researchers who build the algorithms to identify how malware spreads, and who build classifiers and anomaly detection systems to identify as-of-yet unknown Internet threats. This capability to identify threats other security vendors don’t see has rapidly accelerated our business, and we want to keep moving even faster. We’re going to use the funding to hire more engineers and researchers, to improve our free services, and to accelerate our go-to-market efforts as a leading enterprise security company.
Third – We are willing to lean in front of our skis to accelerate our growth. We’ve historically grown primarily through operating cash. But the market is ready for lightweight, highly effective, and easy to manage cloud-delivered security right now. And our product is ready to support that need. OpenDNS is extending (“disrupting”) the $22B perimeter security market with a product that works the way businesses work today and protects workers wherever they are. So the faster we can grow our business, the more people we can hire, and ultimately the better a service we can build and offer. It’s a virtuous cycle, and we want to speed it up.
This financing is a milestone worth pausing for, even if just for a moment. While it might not be as important as delivering innovative products that help business and people more safely use the Internet, or partnering with incredible new customers, it does help ensure that we can continue to do those things, and do them faster. We’re humbled by the vote of confidence in our mission that the funding represents and look forward to helping all of you connect with confidence today and tomorrow. Okay, back to work.