Alert Logic, a Houston, Texas based provider of Security-as-a-Service solutions, today announced that it has closed a $12.2 million round of financing led by new investors Industry Ventures and DH Capital.
The company plans to use the new capital to accelerate the growth of its new Web Security Manager product line, including deployment of Web Security Manager through its channel partners, and to accelerate the growth and adoption of the company's new elastic cloud security solutions.
Alert Logic says it has tripled the size of the company in less than three years and built up a $30 million annual recurring revenue stream from a current customer base of more than 1,700 customers.
“Adding new product lines such as Web Security Manager, and new deployment models such as our elastic cloud solutions, is exactly what our customers and partners are asking us to do. This additional capital gives us the ability to move more aggressively in each of these strategic new directions,” said Gray Hall, president and CEO at Alert Logic.
“Having previously invested in security industry leaders such as Fortinet, Sourcefire and Tripwire, we consider cloud security to be one of the strongest investment themes in the IT industry and we believe Alert Logic will prove to be a cloud security market leader," said Justin Burden, partner at Industry Ventures.
Alert Logic's Security-as-a-Service business model combines security software products purpose-built to be delivered as-a-service, along with integrated managed services providing 24x7 monitoring, alerting, and guidance from security analysts.
In April 2011 - just over one year ago - the company raised $12.6 million in a Series E round of funding.
The company said that all existing investment firms and several members of the company's management team including Updata Partners, Covera Ventures, DFJ Mercury, OCA Ventures and Access Venture Partners also participated in the current round