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Security Awareness Training Firm KnowBe4 Raises $300 Million

Security awareness training firm KnowBe4 announced on Wednesday that it has taken a $300 million investment led by private equity giant KKR.

The company has raised $388 million in funding to date, with the latest round valuing the company at $1 billion—a 25 percent increase since its previous (but very recent) funding round announced in March 2019, which valued the company at roughly $800 million.

KnowBe4

The company declined to tell SecurityWeek if the entire $300 million would go directly to the company, but in late rounds of this size it is typical for some shareholders to cash out and use private markets to take some money off the table. 

KnowBe4 provides training and a phishing attack simulation platform designed to help organizations address the security weaknesses introduced by their employees. The training should make it less likely for employees to fall for ransomware, CEO fraud and other attacks that involve social engineering.

The company added a Virtual Risk Officer (VRO), a Virtual Risk Score (VRS), and Advanced Reporting (AR) features to its platform in late 2018.

With more than 25,000 customers around the world, the Clearwater, FL-based company says it has over $100 million of recurring revenue and is experiencing near triple-digit growth. The company told SecurityWeek that it has been cash flow positive essentially since its launch.

KnowBe4 has acquired several companies, including Securable.io, Popcorn Training, exploqii, El Pescador and CLTRe.

Existing investors Elephant and TenEleven Ventures also had “significant participation” in the deal. 

Related: PhishMe Acquired at $400 Million Valuation, Rebranded as Cofense

Related: Avanan Raises $25 Million in Series B Funding

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For more than 10 years, Mike Lennon has been closely monitoring the threat landscape and analyzing trends in the National Security and enterprise cybersecurity space. In his role at SecurityWeek, he oversees the editorial direction of the publication and is the Director of several leading security industry conferences around the world.