Lacework Acquisition, Valuation, Funding & Investors
Lacework was acquired by Fortinet for $152M in June 2024, a 1.9x multiple on $80M of revenue.
Lacework revenue at acquisition
$80M
Last twelve months · Jun 2024
Lacework revenue multiple at acquisition
1.9x
EV/Revenue · Jun 2024
Cumulative funding Lacework raised
$1.9B
across 5 funding rounds
About Lacework
Lacework is a cloud security company that built a data-driven cloud-native application protection platform. Its software collects activity data from cloud accounts, workloads and containers, learns normal behaviour with machine learning and flags threats, misconfigurations and compliance gaps without hand-written rules. Customers are enterprises running workloads on public clouds who use it to secure infrastructure, containers and code. Revenue comes from subscriptions to the platform. The company was founded in 2015 and is headquartered in San Jose, California, with offices in several countries. It acquired the infrastructure-as-code company Soluble in 2021 to extend the platform into development pipelines, and was itself acquired by Fortinet in 2024.
Founded
2015
HQ
San Jose, CAWebsite
Status
Acquired
Customer focus
B2B
Revenue model
Subscription
Revenue
$80M (Jun 2024)
Valuation
$8.3B (Nov 2021)
Lacework Acquisition
Lacework was acquired by Fortinet for $152M on 10 June 2024.
The acquisition price implies a 1.9x revenue multiple on $80M of revenue.
Before the acquisition Lacework had raised $1.9B across 5 funding rounds.
Fortinet agreed to acquire Lacework in June 2024 and closed the acquisition on August 1, 2024, for $152.3 million in cash, according to its quarterly filing. Forrester had estimated the price at $200 million to $230 million at announcement, and talks with Wiz over a sale had earlier collapsed. Lacework had raised about $1.9 billion in venture funding and was valued at $8.3 billion in its November 2021 round, so the price marked a steep fall from that level. Fortinet said it would offer Lacework's cloud-native application protection platform separately and integrated with its Security Fabric and unified SASE offering, forming an AI-driven cloud security platform from a single vendor. Forrester estimated Lacework's annual recurring revenue at $70 million to $90 million. Lacework was founded in 2015 and is based in San Jose, California. The platform combines machine learning, data collection, a proprietary data lake and code security to identify, prioritise and remediate cloud risks from code to cloud, and it serves nearly 1,000 customers with a portfolio of 225 patents.
| Acquirer | Date | Type | Price | EV/Revenue |
|---|---|---|---|---|
| 10 Jun 2024 | Strategic M&A | $152M | 1.9x |
Sources: fortinet.com, globenewswire.com, sec.gov, forrester.com
Lacework Valuation
Lacework is currently valued at $8.3B, based on its Series D in November 2021. Read the announcement ↗
The $1.3B round was led by Altimeter Capital, with participation from General Catalyst, Dragoneer, XN, Sutter Hill Ventures, Durable Capital Partners and 7 other investors.
Lacework's valuation has grown 8.3x from $1B at its undisclosed-stage round in January 2021 to $8.3B in November 2021, across 2 priced rounds.
Lacework valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Nov 2021 | Series D | $8.3B |
| Jan 2021 | Undisclosed stage | $1B |
Lacework Funding History
Lacework has raised a total of $1.9B across 5 funding rounds.
Lacework's first fundraising round was a $8M Series A in May 2015. The most recent completed round was a $1.3B Series D in November 2021.
Lacework funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Nov 2021 | Series D | Altimeter Capital (lead); General Catalyst; Dragoneer; XN; Sutter Hill Ventures; Durable Capital Partners; Counterpoint Global; Snowflake Ventures; Tiger Global; Liberty Global Ventures; D1 Capital Partners; Coatue; Franklin Templeton | $1.3B | $8.3B | Lacework, a San Jose-based data-driven cloud security platform, raised $1.3 billion in a Series D funding round on November 18, 2021, achieving a post-money valuation of $8.3 billion. The round was led by Sutter Hill Ventures, Altimeter Capital, D1 Capital Partners, and Tiger Global Management, with participation from new investors like Counterpoint Global (Morgan Stanley), Durable Capital, Franklin Templeton, General Catalyst, and XN, plus existing investors Coatue, Dragoneer, Liberty Global Ventures, and Snowflake Ventures. This marked the largest funding round in security industry history at the time. The capital was earmarked for global expansion into Europe and Asia-Pacific, strategic acquisitions (such as recent purchase of Soluble), product innovation to broaden and deepen platform capabilities, scaling go-to-market strategies especially via channel partners, and workforce growth. Lacework reported more than 3x year-over-year revenue growth, 3.5x increase in new customers (including LogicMonitor, Hypergiant, Sprinklr), and over 3x employee growth worldwide leading up to the round. Positioned as a leader in cloud security treating it as a data problem, Lacework aimed to consolidate point solutions into a single platform, serving enterprises navigating cloud complexities. The valuation placed it among the top venture-backed cybersecurity firms, behind only Tanium and Snyk. |
| Jan 2021 | Undisclosed stage | Altimeter Capital (lead); Sutter Hill Ventures (lead); Dragoneer; Snowflake Ventures; Tiger Global; Liberty Global Ventures; D1 Capital Partners; Coatue | $525M | $1B | Lacework announced a $525 million growth round on January 7, 2021, at a valuation of more than $1 billion. The round was led by Sutter Hill Ventures and Altimeter Capital and joined by D1 Capital Partners, Coatue, Dragoneer Investment Group, Liberty Global Ventures, Snowflake Ventures and Tiger Global Management. Lacework, headquartered in San Jose, California, provides a cloud security platform that treats security as a data problem, using behavioural analysis to detect threats, anomalies, misconfigurations and compliance issues across cloud workloads, containers and Kubernetes environments. The company reported that revenue grew more than 300% year over year for the second consecutive year, and it did not disclose an exact valuation. It said the capital would accelerate the go-to-market and partner strategies behind that growth and expand its engineering and research teams in the United States and Europe. The round was the company's largest to date after a $42 million Series C in September 2019. Ten months later, in November 2021, Lacework raised a further $1.3 billion at an $8.3 billion valuation, and it was acquired by Fortinet in August 2024. |
| Sep 2019 | Series C | Liberty Global Ventures (lead); Sutter Hill Ventures (lead); AME Cloud Ventures; Alumni Ventures; Webb Investment Network | $42M | - | Lacework, a Mountain View, California-based cloud security company founded in 2015, provides a purpose-built platform for securing DevOps, cloud-native, container, and hybrid workloads, offering visibility, anomaly detection, intrusion prevention, and compliance across public and private clouds. The Series C funding round of $42 million closed on September 12, 2019, led by Liberty Global Ventures and Sutter Hill Ventures, with participation from Alumni Ventures, AME Cloud Ventures, and Webb Investment Network, bringing total funding to $74 million after a prior $24 million Series B in August 2018. Funds were allocated to product innovation, market expansion, go-to-market activities, and hiring, including Andy Byron as President to lead sales and marketing from his prior role at Cybereason, alongside new board members Mike Speiser from Sutter Hill Ventures and John McMahon. The round supported Lacework's mission to deliver a complete security platform adapting to dynamic cloud environments, distinguishing it from legacy vendors and point solutions, as emphasized by investors and executives. Customers such as HashiCorp, Iterable, and AdRoll adopted the platform for embedding security from build-time to runtime operations. Leadership changes included Dan Hubbard as CEO, following Stefan Dyckerhoff's transition from dual CEO role. Subsequent developments saw Lacework raise $525 million in January 2021 and $1.3 billion later, reaching peak valuations around $8 billion before acquisition talks in 2024 valued it far lower at $150-230 million amid market shifts. |
| Aug 2018 | Series B | Sutter Hill Ventures (lead); Courtney Broadus; AME Cloud Ventures; Alumni Ventures; Liberty Global Ventures; Webb Investment Network | $24M | - | Lacework is a cloud security company providing a data-driven platform with automation for securing cloud-native applications and infrastructure. In August 2018, it closed a $24 million Series B funding round led by Sutter Hill Ventures, with participation from investors including Alumni Ventures, AME Cloud Ventures, Liberty Global Ventures, and Webb Investment Network, though specific investor lists vary slightly across reports. This round supported expansion following earlier funding and positioned Lacework to scale its cloud security solution amid growing adoption of cloud technologies. At the end of 2018, Lacework achieved approximately $1M in ARR, reflecting early traction in the competitive cloud security market. The company focused on innovative approaches to automate threat detection and compliance across multi-cloud environments, differentiating from legacy security tools ill-suited for dynamic cloud workloads. By this stage, Lacework had established itself as a pioneer in polyglot cloud security, addressing challenges in Kubernetes, serverless, and containerized deployments. Later developments highlight Lacework's growth trajectory, with ARR scaling to $5M in 2019, $20M in 2020, and $60M by end of 2021, driven by enterprise deals and partnerships with AWS, Google Cloud, and Microsoft Azure. However, it faced a downturn, acquired by Fortinet in 2024 for an estimated $200-230M after a failed Wiz deal, down from its 2021 peak valuation of $8.3B following a $1.3B raise. |
| May 2015 | Series A | Sutter Hill Ventures (lead) | $8M | - | Lacework raised $8 million in its Series A funding round on May 25, 2015, led by Sutter Hill Ventures. The funding supported the development and launch of its initial cloud security platform. This marked the company's first external funding since its founding in 2015. Lacework provides a data-driven security platform for the cloud, enabling companies to build securely in cloud environments. The Series A was the starting point for its growth in the cybersecurity space focused on cloud infrastructure. Subsequent rounds included a $24 million Series B in August 2018 led by Sutter Hill Ventures, $42 million Series C in September 2019 with Liberty Global Ventures and Sutter Hill Ventures, and larger Series D rounds in 2021 totaling over $1.8 billion with valuations exceeding $1 billion and reaching $8.3 billion. |
Who has invested in Lacework?
17 investors have backed Lacework across its funding rounds, including Sutter Hill Ventures, Liberty Global Ventures, Alumni Ventures, Tiger Global, Coatue and AME Cloud Ventures.
Lead investors include Altimeter Capital, Sutter Hill Ventures and Liberty Global Ventures.
Lacework Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| San Francisco, CA | 5 | Lead | May 2015 | |
| Denver, CO | 4 | Lead | Aug 2018 | |
| San Francisco, CA | 2 | Participant | Jan 2021 | |
| San Francisco, CA | 2 | Participant | Aug 2018 | |
| Menlo Park, CA | 2 | Participant | Jan 2021 | |
| Menlo Park, CA | 2 | Lead | Jan 2021 | |
| Manchester | 2 | Participant | Aug 2018 | |
| New York City, NY | 2 | Participant | Jan 2021 | |
| New York City, NY | 2 | Participant | Jan 2021 | |
| New York City, NY | 2 | Participant | Jan 2021 | |
| San Francisco, CA | 2 | Participant | Aug 2018 | |
| Cambridge, MA | 1 | Participant | Nov 2021 | |
![](data:image/svg+xml,<svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 20 20"><rect fill="%23e5e7eb" width="20" height="20" rx="4"/></svg>){kind=small} Courtney Broadus | San Francisco, CA | 1 | Participant | Aug 2018 |
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Start Free TrialAcquisitions by Lacework
Lacework has acquired 1 company to date.
Last acquisition by Lacework was on November 11th 2021. Lacework acquired Soluble for undisclosed valuation.
Latest Acquisitions by Lacework
| Description | Soluble is a cloud security company offering infrastructure risk management through AI-powered scanning. San Francisco-headquartered, it analyzes code repositories and cloud configurations for vulnerabilities in AWS, Azure, and Google Cloud environments. The platform integrates with continuous integration pipelines for shift-left security. Soluble serves DevOps teams at enterprises with dashboards tracking fix rates and compliance scores across Kubernetes clusters. |
| HQ Country | |
| HQ City | San Francisco, CA |
| Deal Date | 11 Nov 2021 |
| Valuation | undisclosed |
| EV/Revenue | |
| EV/EBITDA | |
This data is available for Pro users. Sign up to see all Lacework acquisitions and their M&A valuation multiples. Start Free Trial | |
Lacework Competitors
Lacework competitors include listed companies like Cyber Security Cloud and Elements, and private ones like Basis Theory, Bureau, InCountry and Sec3.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| San Francisco, CA | Private | - | - | $153M | - | |
| San Francisco, CA | Private | - | - | $150M | - | |
| San Francisco, CA | Private | - | - | $150M | - | |
| Houston, TX | Private | - | - | $150M | - | |
 Japan | Publicly listed | $32M | $8M | $160M | 4.2x | |
| Japan | Publicly listed | $25M | ($4M) | $161M | - |
Lacework Public Comps
Lacework is no longer listed, but its public comps include Clavister Holding, Cyber Security Cloud, Elements, Acer Cyber Security, Gogolook, Digimarc, Ivalue Infosolutions, WALLIX, Micro Systemation and Intercede Group.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $23M | $3M | 7.4x | 5.1x | 56.0x | 20.5x | |||
| $32M | $8M | 4.3x | 4.2x | 17.4x | - | |||
| $25M | ($4M) | 6.4x | - | (41.0x) | - | |||
| $74M | $43M | 1.8x | 1.7x | 3.2x | 5.1x | |||
| $32M | $3M | 4.2x | 3.4x | 52.7x | 18.7x | |||
| $34M | ($25M) | 5.0x | 6.0x | (6.9x) | - | |||
| $112M | $15M | 1.0x | 0.9x | 7.2x | 6.5x | |||
| $46M | $5M | 3.9x | 3.4x | 35.7x | 28.4x | |||
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Common questions about Lacework
| When was Lacework founded? | Lacework was founded in 2015. |
| Where is Lacework headquartered? | Lacework is headquartered in San Jose, CA, United States. |
| Is Lacework publicly listed? | No, Lacework was acquired by Fortinet in June 2024. |
| Who acquired Lacework? | Lacework was acquired by Fortinet in June 2024. |
| How much was Lacework acquired for? | Lacework was acquired for $152M in June 2024, a 1.9x revenue multiple. |
| What is Lacework's valuation? | Lacework was last valued at $8.3B in its Series D in November 2021. |
| How much funding has Lacework raised? | Lacework has raised $1.9B across 5 funding rounds. |
| What was Lacework's last funding round? | Lacework's last funding round was a $1.3B Series D in November 2021, led by Altimeter Capital. |
| Who are Lacework's investors? | Lacework's investors include Sutter Hill Ventures, Liberty Global Ventures, Dragoneer, AME Cloud Ventures, Snowflake Ventures, Altimeter Capital, Alumni Ventures, Tiger Global, D1 Capital Partners, Coatue and 7 others. |
| Which companies are comparable to Lacework? | Companies comparable to Lacework include Basis Theory, Bureau, InCountry, Sec3, Cyber Security Cloud and Elements. |
| How many companies has Lacework acquired? | Lacework has acquired 1 company, including Soluble. |
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