Kiteworks, a leading cybersecurity firm previously known as Accellion, has successfully raised $456 million in a new funding round, elevating its valuation to over $1 billion. The investment, spearheaded by Insight Partners and Sixth Street Growth, marks a significant milestone for the San Mateo-based company. Kiteworks, which specializes in safeguarding sensitive data across email communications, file sharing, and other sensitive interactions, has demonstrated resilience and growth despite facing a major data breach in 2021.
The 2021 breach, which impacted numerous high-profile organizations including Morgan Stanley and the University of California, stemmed from vulnerabilities in legacy services. However, Kiteworks has since bounced back strongly, becoming profitable over the past two years and expanding its services to 100 million end users and over 3,650 global enterprises and government agencies. The recent funding round will support the company’s ambitious plans, including an aggressive mergers and acquisitions (M&A) strategy.
Kiteworks plans to use the new capital to fund future acquisitions, enhance research and development, and expand its business operations. The company has already acquired four smaller startups since 2022, and the fresh investment will help continue this growth trajectory. Chief Strategy Officer Tim Freestone emphasized that the funding will bolster Kiteworks’ ongoing M&A efforts, aimed at consolidating its position in the competitive cybersecurity market.
The funding environment for cybersecurity startups remains challenging, but well-performing companies like Kiteworks are emerging as key consolidators. With its unique approach to data protection and a strong focus on compliance, including being FedRAMP authorized for government-related activities, Kiteworks is well-positioned to leverage the new investment to meet the evolving needs of its customers and capitalize on the growing importance of data security.
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