Abnormal Security, a leader in the cybersecurity sector, announced on Tuesday that it secured $250 million in a Series D funding round, bringing the company's valuation to $5.1 billion. The funding round was led by Wellington Management and supported by previous investors including Greylock Partners, Menlo Ventures, Insight Partners, and CrowdStrike's venture arm.
Founded in 2018 by the architects behind the Twitter-acquired TellApart, Abnormal Security has rapidly expanded, now boasting over 2,400 customers like Maersk, Xerox, and Mattel. This customer base represents about 17% of the Fortune 500 companies, signaling significant market penetration. The company has achieved over $200 million in annualized revenue, doubling its size within the past year.
The influx of capital will be channeled into enhancing Abnormal's AI-driven platform aimed at defending users from sophisticated email threats and other cybersecurity risks, such as phishing, malware, and spam. This move comes as the cybersecurity market sees increased activity and competition from major players like Microsoft, Cloudflare, Zscaler, and Palo Alto Networks, amidst ongoing market consolidation.
Evan Reiser, co-founder and CEO of Abnormal Security, expressed the company's strong market positioning and growth trajectory. "Abnormal is one of the fastest-growing cyber companies ever," Reiser stated. The firm has also made strategic senior hires, hinting at plans for a future IPO. Key appointments include Michael DeCesare as president, James Yeager as head of public sector sales, and Smita Sanadhya as CFO, along with Jeff True as chief legal officer.
These developments come as Abnormal aims to fill 300 new positions this year, expanding from its current workforce of 600. Reiser highlighted the potential IPO as a crucial step in Abnormal's long-term strategy, noting that the timing will align with favorable market conditions.