Silicon Valley startup ArmorCode emerges from Stealth with $3m in seed funding to redefine application security
ArmorCode, the Silicon Valley startup delivering application security at the speed of DevOps, has secured $3 million in seed financing led by Sierra Ventures with participation from Tau Ventures and Z5 Capital and individual investors including industry leaders Andreas Kuehlmann (CEO, Tortuga Logic; former security executive at Synopsys) and Prithvi Rai (former Sr. Director of Security at Uber, Facebook, and Yahoo!). Enterprises use ArmorCode to consolidate application security tooling, streamline application security processes, increase business agility, and improve developer productivity.
Teza Mukkavilli, Chief Security Officer, ChargePoint: "Application development has changed radically: from waterfall to agile development and from monolithic application architecture to microservices delivered at the edge. Once-a-year compliance is no longer sufficient as releases are done on a weekly or even daily cadence. However, application security and compliance tools haven't kept up. My team was able to onboard the ArmorCode platform in less than 15 minutes and saw tremendous time to value."
ArmorCode was founded in July 2020 by CEO Nikhil Gupta, the former VMware and Cisco executive most known for founding Avid Secure, an AI-powered enterprise cloud security posture management company acquired by Sophos and seasoned CTO Anant Misra to help companies take charge of increasingly-complicated application security environments. According to Gartner, application security is one of the top three fastest-growing segments within cybersecurity.
Mark Fernandes, Managing Partner, Sierra Ventures: "We have received consistent feedback from the CISO group of our CXO Advisory Board that they are overwhelmed by the volume and complexity of application security alerts. ArmorCode is the most comprehensive solution in the space and the founding team has very relevant startup experience to tackle this significant problem. The rapid early bottoms-up customer adoption is validating our thesis."
The transition to agile development, the rise of microservices, and an increased reliance on cloud services for business operations due to the pandemic have contributed to an explosion in software development and a dramatic reduction in software delivery time. As the speed and complexity of application development skyrockets, application security professionals increasingly find themselves unable to keep up and many are forced to piece together security tools as stopgaps. Gartner recently found that "78% of CISOs have 16 or more tools in their cybersecurity vendor portfolio and 12% have 46 or more. Too many security vendors result in complex security operations and increased security headcount. Most organizations recognize vendor consolidation as an avenue for reduced costs and better security, with 80% of organizations interested in vendor consolidation strategy."
In addition, cybercrime is increasing partly due to the pandemic: a global survey of 1,000 CXOs revealed that 90% experienced an increase in cyberattacks due to the pandemic and 93% said they were forced to delay key security projects in order to manage the transition to remote work. Cybersecurity Ventures predicts cybercrime damages will total $6 trillion globally in 2021 or $190,000 every second and will grow by 15 percent per year over the next five years, reaching $10.5 trillion annually by 2025.
ArmorCode is a next-generation application security platform that consolidates three key AppSec needs into a single intelligent platform that minimizes tooling and alerts while maximizing agility, efficiency, and cost-effectiveness.
Nikhil Gupta, Co-founder and CEO, ArmorCode: "While software development releases have shrunk from years to hours, enterprise application security processes are still slow, antiquated, and chaotic. ArmorCode has designed a massively scalable agentless platform from the ground up to help modernize application security. We already have a strong remote-first team of more than 25 members and this initial funding will enable us to realize our dream of democratizing application security."