Rapid7, a leading provider of security analytics software and services, today announced that it has received $30 million in additional funds from its long-standing investors, Bain Capital and Technology Crossover Ventures (TCV). The stockholders increased their investment in Rapid7 to enable the Company to maximize on the incredible growth opportunity presented by its latest innovative technology and strategic security services, which help customers radically improve security incident detection and speed response, and build better enterprise security programs. Interest in these offerings has been so compelling that Rapid7's leadership and investors capitalized on a timely opportunity to further the development of the solution and market while continuing to drive innovation in the Company's core threat exposure management portfolio.
"At Rapid7, we design our products and services with a relentless focus on making it easier for enterprise customers and organizations to execute effective security programs. We believe companies can be successful in security without slowing down their business," said Corey Thomas, president and CEO of Rapid7. "This infusion of funds will enable us to capitalize on the tremendous growth and success we have seen this year by accelerating our leadership, market share, and development in intruder analytics and services, while continuing to innovate to better serve our existing customer base."
The past year has been notable for the many high-profile security compromises of well-known and respected companies. In most cases, the attacks were not detected for several weeks or months, enabling the intruders to move through the network and steal a great deal of valuable information. The 15% year-over-year growth in breaches reported this year 1 can be attributed to a combination of factors: risky user and vendor behavior, prevalent cloud environments, and a remote and extended workforce. In this challenging environment, analyst firm Gartner predicts that budgets will shift to recognize the importance of incident detection and response, stating that "by 2020, 60% of enterprise information security budgets will be allocated to rapid detection and response approaches — up from less than 10% in 2014."2
Rapid7 has developed a pioneering security software and services approach to address these challenges. Its solutions help organizations reduce the attack surface and detect incidents from the endpoint to the cloud.
Rapid7 UserInsight, which was launched late last year, is the most effective solution for detecting and investigating attacks involving compromised credentials, user impersonation, and lateral attacker movement. In 2014, Rapid7 added new investigation capabilities to help customers dramatically reduce analysis time and respond to incidents by as much as five to ten times faster, including the interactive incident timeline. With the additional funding, Rapid7 will continue to innovate and lead the market for incident detection and investigation, and expand its global enterprise customer base. Rapid7 UserInsight has already been adopted by organizations across many industries, including Ardent Health Services, GoldenTree Asset Management, Hulu, MeadWestvaco Corporation, Sally Beauty Holdings, and the University of Toledo.
In addition, Rapid7 announced the launch of its Global Strategic Services practice this year, focused on helping organizations transform the way they manage their security programs by using data-driven analysis and best practices. The service, which has been well received by both new and existing customers, provides hands-on assessments of an organization's security environment using Rapid7's own maturity models coupled with compliance and regulatory requirements. Aligned with a company's threats, organizational risk appetite, and business objectives, the assessment provides customized recommendations for security program changes that can be implemented over a timeframe appropriate for the organization. This new investment will be used to accelerate growth and fund new offerings within the Global Strategic Services practice.
"Cyber security risks and challenges are increasing fast and customers are looking for leaders that can help them understand and address the threat," said Ben Nye, managing director, Bain Capital Ventures. "Rapid7's IT security analytics solutions deliver phenomenal value in this area. As a result, the Company is experiencing impressive growth and has a compelling future."
"Rapid7 has remained a strong performer within our portfolio since our first investment. It's an efficient, established company that dares to innovate like a startup. We value Rapid7's mission to give organizations the insight and capabilities they need to be successful with security and are excited to be a part of their continued success," said Tim McAdam, general partner, Technology Crossover Ventures.
1 Identity Theft Resource Center, 2014 ITRC Data Breach Report, December 2, 2014
2 Gartner, Designing an Adaptive Security Architecture for Protection From Advanced Attacks, February, 12, 2014
Rapid7 security analytics software and services reduce threat exposure and detect compromise for 3,000 organizations across 78 countries, including over 250 of the Fortune 1000. We understand the attacker better than anyone and build that insight into our solutions to improve risk management and stop threats faster. We offer advanced capabilities for vulnerability management, penetration testing, controls assessment, incident detection and investigation across your assets and users for virtual, mobile, private and public cloud networks. To learn more about Rapid7 or get involved in our threat research, visit www.rapid7.com.
Bain Capital, LLC (http://www.baincapital.com) is one of the world's foremost privately-held alternative investment firms, with approximately $80 billion of assets under management in several pools of capital including private equity, venture capital, public equity, credit products and absolute return. Bain Capital's more than 400 professionals are collectively the single largest investor in all of its funds and are dedicated to investing in and building its portfolio companies. Founded in 1984, Bain Capital has made private equity, growth, and venture capital investments in more than 450 companies around the world, and has deep experience in the consumer and retail space with investments in companies including Apple Leisure Group, Canada Goose, The Weather Company, TOMS and many others. Bain Capital has offices in Boston, New York, Chicago, Palo Alto, London, Munich, Dublin, Tokyo, Shanghai, Hong Kong, Mumbai and Sydney.
Technology Crossover Ventures (TCV), founded in 1995, is a leading provider of capital to growth-stage private and public companies in the technology industry. With nearly $10 billion in capital raised, TCV has invested in more than 200 technology companies over the last 18 years. Selected investments include Altiris, C|NET, ExactTarget, Expedia, Facebook, Fandango, FX Alliance, GoDaddy, Genesys Software, Groupon, HomeAway, Netflix, RealNetworks, Redback Networks, RiskMetrics Group, Sitecore, Splunk, Spotify, Thinkorswim, VICE Media, and Zillow. TCV is headquartered in Palo Alto, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit http://www.tcv.com.