Enterprise cybersecurity startup Tanium has raised additional funding just five months since its last investment round, according to reports on Tuesday (Oct. 2).
Tanium, which provides organizations with an IT security platform, raised $200 million from Wellington Management, Baillie Gifford & Company and Adage Capital Management, pushing Tanium’s valuation up to $6.5 million.
After its previous funding round, in which Tanium raised $175 million, the firm was valued at $5 billion.
“The last round was largely an inside round,” said the company’s chief operating officer and chief financial officer, Fazal Merchant, referencing the previous round of funding. This latest funding, though, is “deliberate.”
“We have friends and family who have been investors for a long time and this gives them liquidity,” added Merchant.
Corporate cybersecurity is a popular target for venture capitalists today, and a bright spot for B2B startups. According to reports, Tanium addresses security friction within businesses caused by a disparate security strategy. Typically, large companies operate security with two different focuses: compliance and breach protection. Tanium’s solution addresses both needs of its corporate clients, with the capability to integrate its platform in-house.
According to Merchant, widespread fragmentation of the corporate security space has placed M&A on the table as an option for its future, both as a potential buyer and acquisition target, though no deal has been made on either front, reports noted.
In a statement, Baillie Gifford’s head of unlisted equities, Peter Singlehurst, described the company as “an extraordinary platform, providing IT security and management at scale for some of the world’s most successful companies.”
“As long-term investors, we look forward to supporting Tanium’s management team over the coming years as it continues to build a world-class technology business,” Singlehurst added.
Last year, Tanium discovered it was using private hospital data in its product demonstrations without permission. The data was used in demos between 2012 and 2015, with presentations pointing out security vulnerabilities, computer and server names, and other key information of El Camino Hospital, based in California. No patient data was shared during those demos.