Tenable Network Security Raises $250 Million in Series B Round

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Tenable CEO Ron Gula is having a good day.

Tenable Network Security Inc. has raised a $250 million in a record series B round.

The round was led by Insight Venture Partners and Accel Partners and increases the 13-year-old Columbia, MD-based cybersecurity company’s total raised capital to $300 million, in addition to $50 million raised in a 2012 series A funding led by Accel Partners.

With this deal, Tenable, a privately-owned provider of continuous network monitoring and vulnerability management solutions, has operations in over ten countries with over a million users and nearly 20,000 customers worldwide. Some of the most recognizable names in Tenable’s customer roster are Deloitte, Visa, BMW, Adidas and Microsoft as well as public sector organizations including all arms of the entire U.S. Department of Defense.

A growing international business focus on cyber security has fueled impressive growth for Tenable, which grew billings over 50% last year and has a run rate that exceeds $100 million.

Understandably, this makes companies such as Tenable an attractive prospect for VC firms.

“Security and vulnerability continues to be one of the largest concerns for companies across all sectors,” said Richard Wells, managing director of Insight Venture Partners in an official statement. “Tenable fits clearly within our strategy of investing in growing companies that are providing large global industry solutions. We are pleased to partner with Tenable’s team to further advance the company’s strategic goals.”

Record-setting deals such as this one have led some investors to predict a “cybersecurity boom”—Some predict the cybersecurity market will be worth $170 billion by 2020. Other analysts are concerned that another tech bubble may be forming, while others insist there is not.

For now, both VC firms and Security companies seem undeterred— Tenable recently hired 200 new workers to meet increasing demand, and in July, Tenable announced a five-year plan to hire hundreds of workers, backed by a $1 million loan from the Maryland Department of Commerce and a $100,000 workforce training grant from the Howard County Economic Development Authority.


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