On Our Radar: Deals we are paying attention to for their impact on industry.
Expanse, a cybersecurity firm founded by a former CIA tech expert, raised $70 million in a Series C funding led by TPG Growth. The company plans to apply the funds to increase its international expansion beyond existing customers in the United Kingdom, Canada, Australia, and Japan.
While more than $500 billion is spent on internet connectivity and related IT services each year, most organizations have no central tool to manage all their internet-connected assets, which are often spread across multiple data centers, cloud platforms and edge locations such as overseas offices. That gap gives hackers an opening to launch cyber-attacks.
“This inability to monitor all assets is the root cause of almost every major cybersecurity breach in the last decade.” the San Francisco-based company said in a statement. “Nonetheless, organizations still typically utilize an error-prone process of populating spreadsheets with the help of many different employees and tools.”
Expanse’s approach includes indexing everything connected to the public internet to inform customers in real-time what they own, what’s at risk, and how to protect their most critical assets.
With the number of internet-connected devices expected to surge to 28.5 billion by 2022 –more than three for each person on the planet, according to a recent report from Cisco –the boundaries of enterprise networks will get increasingly complex, creating an opening for products like those of Expanse.
“We see immense potential in Expanse that puts them on a pathway to being one of the world’s most impactful software companies,” said Tim Millikin of TPG. ”This platform will help users better navigate and secure their technology infrastructure.”
Other investors in the round included Arianna Huffington, Peter Thiel, Egon Durban, Taylor Glover, Sam Palmisano, as well as return investments from NEA, IVP, Founders Fund, and MSD Capital.
Expanse customers include CVS/Aetna, PayPal, Capital One, Allergan, Hudson’s Bay Company, the US Army, US Navy, US Air Force, and the Departments of Defense, Energy, and State.
“We’re seeing unprecedented traction because every large organization is unable to map the constantly changing boundaries of its network unless it’s using Expanse,” said Tim Junio, the CEO and co-founder of Expanse. “While internet services—SaaS, IaaS, IoT or public cloud—provide businesses cutting-edge tools for their problems, the underlying internet infrastructure these tools are built upon is broken.” He says only Expanse lets a company manage and secure its information everywhere it appears on the internet.
“Expanse provides an essential suite of services that every business should be using to understand and protect the true extent of their network,” said Tim Millikin at TPG, who also helped lead their investments in Tanium, ZScaler, and Box.
Somesh Dash, General Partner at IVP, said it’s “simply bad business” if a firm can’t monitor and oversee all its internet assets. “Enterprises don’t know the edge of their network unless they’re using Expanse. Expanse’s unique approach to inform businesses in real time what they own, what’s at risk, and how to protect their most critical assets—is the reason the company is tripling sales year-over-year.”
The San Francisco-based company, formerly known as Qadium was founded in 2012, and has raised more than $135 million.
Peter Green is an award-winning business and investigative journalist based in New York.