Veracode Closes $40 Million Funding Round

Veracode, a Burlington, Massachusetts-based provider of web and mobile application security testing solutions, today announced that it has closed a late-stage $40 million funding round led by Wellington Management with participation from previous investors.

According to the company, the additional cash will help accelerate its global expansion by boosting investments in sales, marketing and R&D.

This latest round follows a $30 million funding round in 2012 and brings the total amount raised by the company to $134 million.

Additionally, the funding provides the company with options, such as making acquisitions and a potential IPO.

Claiming growth of 50 percent last year, Veracode counts hundreds of the world’s largest global enterprises, including three of the top four banks in the Fortune 100 and more than 25 of the world’s top 100 brands as customers.

The application security space has been hot lately. Coverity, another application security provider, was acquired by Synopsys for approximately $375 million in February, while Cenzic was acquired by Trustwave in March 2014 for an undisclosed sum. White Hat Security, another leading player in the security testing space, raised $31 million in February 2013. Fortify, a pioneer in the software security space, was acquired by HP in 2010.

“Our goal is to speed the pace of business innovation with a more scalable, next-generation approach that industrializes application security controls across our customers’ web, mobile and third-party applications,”said Bob Brennan, CEO of Veracode, who joined the company in 2011 after leaving his post as CEO of document storage firm Iron Mountain. “This latest round of funding enables us to maintain our growth trajectory as we both gain new customers and expand our scope across our existing customers’ global application infrastructures.”

Veracode’s cloud-based application security service offers centralized policies and KPIs which reduce risk and measure progress across business units and development teams, including third-party suppliers, outsourcers and open source developers.

According to the company its cloud-based platform is able to “learn” to help address evolving threats, based on accumulated learning from hundreds of billions of equivalent lines of code scanned.