Red Canary Acquisition, Valuation, Funding & Investors

Red Canary was acquired by Zscaler for $675M in May 2025.

Red Canary acquisition price

$675M

Acquired by Zscaler · May 2025

Cumulative funding Red Canary raised

$130M

across 5 funding rounds

Key investors in Red Canary

  • Noro-Moseley Partners
  • Access Venture Partners
  • Summit Partners
  • Legion Cap
  • Service Provider Capital

Red Canary Overview

About Red Canary

Red Canary is a managed detection and response provider delivering cloud-native cybersecurity services. Denver-headquartered, its platform employs behavioral analytics to detect threats across endpoints, cloud workloads, and networks for enterprises worldwide. The company serves over 1,000 organizations, including partnerships with AWS and integrations for rapid incident response.


Founded

2014

HQ

United StatesDenver, CO

Status

Acquired

Customer focus

B2B

Revenue model

Subscription

Valuation

$675M (acquired May 2025)

Red Canary Acquisition

Red Canary was acquired by Zscaler for $675M on 27 May 2025.

Before the acquisition Red Canary had raised $130M across 5 funding rounds.

Red Canary, a Denver-based leader in Managed Detection and Response (MDR) with over 10 years of SecOps expertise, enables customers to investigate threats up to 10 times faster with 99.6% accuracy via automated remediation and agentic AI-driven threat detection. Zscaler, a San Jose cloud security leader (NASDAQ: ZS) built on the Zero Trust Exchange platform processing 500 billion daily transactions, signed a definitive agreement on May 27, 2025, to acquire Red Canary for $675 million in cash. The strategic rationale combines Red Canary’s threat intelligence, automated runbooks, and endpoint visibility with Zscaler’s data fabric (from prior Avalor acquisition) and global scale to deliver unified AI-powered security operations, displacing traditional SIEM tools and accelerating agentic AI SOC innovations. The deal closed on August 1, 2025, after regulatory approvals, with Red Canary operating initially as a separate business unit under its name to ensure customer continuity while integrating technologies for comprehensive Zero Trust protection spanning exposure management, threat detection, investigation, and response. Zscaler CEO Jay Chaudhry emphasized accelerating SecOps expansion without competing in MDR, leveraging Red Canary’s North American customer base for cross-sell and global reach. Red Canary CEO Brian Beyer highlighted mutual benefits in AI, threat intelligence, and faster response times amid shifting MDR market toward proactive services and network visibility priorities. Post-acquisition, Zscaler gains recurring revenue infusion and Red Canary accesses superior go-to-market engine, salesforce, and international footprint, fostering channel partner opportunities in managed SOC services. Analysts note financial synergies from shared subscription models but stress talent retention risks for Red Canary’s expertise.

Red Canary acquisition details
AcquirerDateTypePrice
27 May 2025Strategic M&A$675M

Red Canary Funding History

Red Canary has raised a total of $130M across 5 funding rounds.

Red Canary's first fundraising round was a $3M seed round in March 2015. The most recent completed round was a $81M Series C in February 2021.

Red Canary funding rounds

Red Canary funding rounds
DateStageInvestorsRaisedDeal Summary
Feb 2021Series CSummit Partners (lead); Access Venture Partners; Noro-Moseley Partners$81MRed Canary is a Denver-based provider of managed detection and response (MDR) and security operations software-as-a-service (SaaS) solutions. Founded in 2013, the company helps organizations detect and respond to cyberattacks with offerings including endpoint protection, network alert analysis, cloud workload protection, and security analytics tools. On February 17, 2021, Red Canary closed a Series C funding round that raised $81 million, led by global growth equity firm Summit Partners with participation from existing investors Noro-Moseley Partners and Access Venture Partners. This brought the company's total funding to more than $125 million. The Series C funding was intended to support continued investment in product development and team expansion, including planned launches of new SaaS offerings and expansion of sales and marketing efforts to accelerate customer growth. At the time of the Series B round in April 2019 ($34M led by Summit Partners), Red Canary demonstrated year-over-year annual recurring revenue (ARR) growth exceeding 100% and maintained a high customer satisfaction baseline. By May 2025, Red Canary was acquired by Zscaler for an undisclosed price, marking the company's exit after raising over $135 million across multiple funding rounds from venture investors including Summit Partners, Noro-Moseley Partners, Access Venture Partners, and Kyrus Tech.
Apr 2019Undisclosed stageSummit Partners (lead); Access Venture Partners; Noro-Moseley Partners$34MRed Canary is a Denver-based provider of managed detection and response (MDR) security operations solutions, defending organizations from endpoints, networks, and cloud workloads using a proprietary software platform that ingests over 500 terabytes of telemetry daily and applies behavioral analytics, supported by in-house expert security analysts. The company raised $34 million in growth equity funding around April 30, 2019, led by Summit Partners, with participation from existing investors Access Venture Partners and Noro-Moseley Partners. This round aimed to scale the team to expand delivery of outcome-focused security services and meet growing demand in the fast-expanding MDR market. Founded in 2013 or 2014, Red Canary serves a range of customers from Fortune 100 companies to small organizations with 100 employees, positioning itself as a pioneer in MDR amid rising cyber threats and challenges in building internal security teams. The funding reflects strong market need, as evidenced by customer satisfaction and community engagement through blogs, webinars, and open-source projects like Atomic Red Team. Summit Partners' managing director Andrew Collins joined the board, highlighting Red Canary's software-driven model that delivers high-quality, improving service bypassing traditional security tech limitations. Later, in a subsequent Series C round, Red Canary raised $81 million also led by Summit Partners, bringing total funding over $125 million to further expand protection across enterprise environments. The MDR market was forecasted to reach $1.9 billion by 2024 per Research and Markets, underscoring the sector's growth driven by threat complexity and staffing shortages.
May 2018Series A-$6MRed Canary, a Denver-based provider of managed detection and response (MDR) solutions, raised $6.25 million in a funding round announced on May 11, 2018. This appears to be an initial filing related to their Series A round. The company offers a SaaS-based security operations platform that ingests and analyzes telemetry data to detect threats. Red Canary had previously raised a $6 million Series A round led by Access Venture Partners and Noro-Moseley Partners, with participation from Kyrus. At that time, the company was cash flow positive and customer-funded, having exceeded growth goals with a mature platform serving diverse global customers. The funding supported expansion in marketing, sales, and reach to improve security outcomes. Red Canary continued raising capital in later rounds, including a $34 million round led by Summit Partners and an $81 million Series C in February 2021, bringing total investment over $125 million to invest in product expansion and team growth in the MDR market.
Aug 2016Series AAccess Venture Partners; Service Provider Capital; Legion Cap; Noro-Moseley Partners$6MRed Canary, a Denver-based cybersecurity company founded in 2013, provides managed detection and response solutions that combine technology, processes, and expertise to detect, investigate, and respond to cyber threats bypassing traditional security tools. The company focuses on endpoint threat protection, analyzing 150,000 events per endpoint per day while using machine learning to suppress false positives. At the time of the Series A, Red Canary served over 100 organizations worldwide, particularly in financial services, healthcare, technology, and defense contracting sectors, and had won the Red Herring Top 100 North America award. In February 2016, Red Canary closed a $6.1 million Series A funding round from Access Venture Partners, Noro-Moseley Partners, Service Provider Capital, and existing investor Kyrus. The investors were selected for their deep security and SaaS experience to join the board. The 15-person team planned to double in size by hiring 10-15 people over the next six to 12 months to support growth as a leading managed security provider. The funding aimed to accelerate Red Canary's vision of enabling every organization to detect and respond to cyber attacks, building on healthy growth experienced in the prior year.
Mar 2015SeedLegion Cap (lead)$3MRed Canary raised a $2.5 million seed round led by Kyrus (also referred to as Legion Cap in some contexts) in 2015. The company, founded in 2013 or 2014, develops security operations software, including managed detection and response (MDR) solutions that help businesses detect and respond to cyberattacks using behavioral analytics and expert analysts. This seed funding contributed to Red Canary's early growth in the cybersecurity market. Subsequent rounds included a $6.1 million Series A in 2016 with Kyrus, Access Venture Partners, Noro-Moseley Partners, and Service Provider Capital, followed by a $34 million growth equity round in 2019 led by Summit Partners, and an $81 million Series C in 2021 also led by Summit Partners, bringing total funding to over $125 million by 2021. Red Canary reported 270% revenue growth over the two years prior to the 2021 Series C, along with expansions in customers, threats detected, and product offerings like Alert Center and Cloud Workload Protection. The company was later acquired in 2025.

Who has invested in Red Canary?

5 investors have backed Red Canary across its funding rounds, including Noro-Moseley Partners, Access Venture Partners, Summit Partners, Legion Cap and Service Provider Capital.

Lead investors include Summit Partners and Legion Cap.


Red Canary Investors

Investors in Red Canary by funding rounds participated
InvestorHQRoundsRoleFirst check
Access Venture PartnersUnited StatesDenver, CO3ParticipantAug 2016
Noro-Moseley PartnersUnited StatesAtlanta, GA3ParticipantAug 2016
Summit PartnersUnited StatesBoston, MA2LeadApr 2019

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Red Canary Competitors

Red Canary competitors include listed companies like OneSpan and Aura.com, and private ones like Automox, Sardine, 7AI and Vega Security.

Public and private companies comparable to Red Canary
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
AutomoxUnited StatesAustin, TXPrivate--$666M-
OneSpanUnited StatesUnited StatesPublicly listed$243M$57M$661M2.5x
SardineUnited StatesMiami, FLPrivate--$660M-
7AIUnited StatesUnited StatesPrivate--$700M-
Vega SecurityIsraelTel AvivPrivate--$700M-
Aura.comUnited StatesUnited StatesPublicly listed$193M($155M)$643M-

Red Canary Public Comps

Red Canary is no longer listed, but its public comps include Feitian Technologies, OneSpan, DBAPPSecurity, Aura.com, CANCOM, Sansec, Baudroie, Beijing VRV Software, Mitek Systems and Asiainfo Security.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Feitian Technologies$104M($4K)6.2x-(168378.6x)-
OneSpan$243M$57M2.6x2.5x11.0x8.9x
DBAPPSecurity$321M$15M1.8x1.8x38.5x21.1x
Aura.com$193M($155M)5.7x-(7.0x)-
CANCOM$2B$118M0.4x0.4x6.3x5.7x
Sansec$83M($2M)6.1x5.4x(310.1x)(388.8x)
Baudroie$112M$24M5.2x4.3x24.7x21.0x
Beijing VRV Software$46M($44M)13.1x-(13.6x)-

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Common questions about Red Canary

When was Red Canary founded?Red Canary was founded in 2014.
Where is Red Canary headquartered?Red Canary is headquartered in Denver, CO, United States.
Is Red Canary publicly listed?No, Red Canary was acquired by Zscaler in May 2025.
Who acquired Red Canary?Red Canary was acquired by Zscaler in May 2025.
How much was Red Canary acquired for?Red Canary was acquired for $675M in May 2025.
How much funding has Red Canary raised?Red Canary has raised $130M across 5 funding rounds.
What was Red Canary's last funding round?Red Canary's last funding round was a $81M Series C in February 2021, led by Summit Partners.
Who are Red Canary's investors?Red Canary's investors include Access Venture Partners, Noro-Moseley Partners, Summit Partners, Legion Cap and Service Provider Capital.
Which companies are comparable to Red Canary?Companies comparable to Red Canary include Automox, OneSpan, Sardine, 7AI, Vega Security and Aura.com.

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