Veracode Acquisition, Valuation, Funding & Investors

Veracode was acquired by TA Associates for $2.5B in March 2022.

Veracode acquisition price

$2.5B

Acquired by TA Associates · Mar 2022

Veracode EBITDA multiple at acquisition

20.8x

EV/EBITDA · Mar 2022

Cumulative funding Veracode raised

$40M

across 1 funding round

Key investors in Veracode

  • Wellington Management
  • Atlas Venture
  • .406 Ventures
  • DOT Capital

Veracode Overview

About Veracode

Veracode is a Burlington, Massachusetts-headquartered provider of application security testing platforms analyzing code for vulnerabilities in Java, .NET, and JavaScript. Founded in 2006, the cloud service scans over 1 trillion lines of code yearly for enterprises like Dell and Pfizer, supporting DevSecOps pipelines with IDE plugins and CI/CD integrations. Acquired by Thoma Bravo in 2018, it holds leadership in Forrester Wave reports.


Founded

2006

HQ

United StatesUnited States

Status

Acquired

Customer focus

B2B

Revenue model

Subscription

Valuation

$2.5B (acquired Mar 2022)

Veracode Acquisition

Veracode was acquired by TA Associates for $2.5B on 15 March 2022.

The acquisition price implies a 20.8x EBITDA multiple.

Before the acquisition Veracode had raised $40M across 1 funding round.

Veracode is a leading provider of cloud-based application security testing software that enables developers and security teams to identify and fix vulnerabilities in code, serving over 2,600 businesses across industries like financial services, healthcare, retail, and technology. On March 15, 2022, TA Associates announced a significant growth investment in Veracode, valuing the company at $2.5 billion, with the transaction expected to close in Q2 2022. Thoma Bravo, the prior majority investor, retained a minority position post-investment. The investment supports Veracode's expansion plans, including organic product development, strategic M&A, and global growth while maintaining strong business fundamentals. TA Associates highlighted Veracode's leadership in the application security market amid rising needs for secure software development. The deal was financed with debt from Deutsche Bank and Audax Group, and transaction closed around April 2022. Post-investment, Veracode aimed to grow headcount to 700 employees, expand geographically into South America and Europe, and pursue federal contracts in the US, positioning itself for active M&A role as valuations normalized.

Veracode acquisition details
AcquirerDateTypePriceEV/EBITDA
  • TA Associates
15 Mar 2022PE buyout$2.5B20.8x

Veracode Funding History

Veracode has raised a total of $40M across 1 funding round.

Veracode funding rounds

Veracode funding rounds
DateStageInvestorsRaisedDeal Summary
Sep 2014Series FWellington Management (lead); .406 Ventures; Atlas Venture; DOT Capital$40MVeracode, a Burlington, Massachusetts-based provider of web and mobile application security testing solutions, closed a $40 million late-stage funding round led by Wellington Management Company in September 2014. The round included participation from previous investors and brought the company's total funding to $134 million. The capital was intended to accelerate global expansion through increased investments in sales, marketing, and research and development, while providing options for acquisitions and a potential initial public offering. Veracode's cloud-based application security platform offered centralized policies and key performance indicators to reduce risk across customers' web, mobile, and third-party applications. The company reported 50 percent growth in the prior year and counted hundreds of the world's largest global enterprises as customers, including three of the top four banks in the Fortune 100 and more than 25 of the world's top 100 brands. The platform leveraged accumulated learning from scanning hundreds of billions of equivalent lines of code to help address evolving security threats.

Who has invested in Veracode?

4 investors have backed Veracode across its funding rounds, including Wellington Management, Atlas Venture, .406 Ventures and DOT Capital.

Lead investors include Wellington Management.


Veracode Investors

Investors in Veracode by funding rounds participated
InvestorHQRoundsRoleFirst check
Wellington ManagementUnited StatesBoston, MA1LeadSep 2014
.406 VenturesUnited StatesUnited States1ParticipantSep 2014

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Acquisitions by Veracode

Veracode has acquired 3 companies to date.

Last acquisition by Veracode was on January 6th 2025. Veracode acquired Phylum for undisclosed valuation.


Latest Acquisitions by Veracode

Phylum
Longbow
Crashtest Security
Description
-
Longbow is a Tel Aviv-based cybersecurity firm offering a SaaS platform for application and cloud security. It prioritizes remediation by identifying highest-risk vulnerabilities and recommending precise actions to mitigate cloud misconfigurations and software flaws in AWS, Azure, and Google Cloud environments.
Crashtest Security is a Munich-based cybersecurity firm offering automated vulnerability scanning for web applications and APIs via its Security Suite. Launched in 2019, it supports DevSecOps pipelines with integrations for GitLab CI/CD and Jira, scanning for OWASP Top 10 risks. Serving fintechs and e-commerce firms in Europe, the platform standardizes reporting for GDPR compliance and includes pentesting training.
HQ CountryUnited StatesUnited StatesGermany
HQ City
-
Austin, TX
Munich
Deal Date6 Jan 20251 Apr 202412 Dec 2022
Valuationundisclosedundisclosedundisclosed
EV/Revenue
EV/EBITDA

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Veracode Competitors

Veracode competitors include listed companies like Venustech Group and QiAnXin, and private ones like ReliaQuest, Linear, HoneyBook and Transmit Security.

Public and private companies comparable to Veracode
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
ReliaQuestUnited StatesTampa, FLPrivate$300M-$3.4B11.3x
LinearUnited StatesSan Francisco, CAPrivate$100M-$2.5B25.0x
HoneyBookUnited StatesSan Francisco, CAPrivate$80M-$2.4B30.0x
Transmit SecurityUnited StatesBoston, MAPrivate$100M-$2.7B27.4x
Venustech GroupChinaChinaPublicly listed$349M($60M)$2.5B6.0x
QiAnXinChinaChinaPublicly listed$655M($147M)$2.8B4.5x

Veracode Public Comps

Veracode is no longer listed, but its public comps include Venustech Group, QiAnXin, Intapp, NetScout Systems, AvePoint, Cellebrite, A10 Networks, CETC Cyberspace Security, Progress Software and CloudWalk.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Venustech Group$349M($60M)6.6x6.0x(38.4x)(176057.4x)
QiAnXin$655M($147M)4.6x4.5x(20.4x)(41.4x)
Intapp$578M($16M)4.6x4.5x(164.3x)20.9x
NetScout Systems$859M$163M2.6x2.6x13.9x9.5x
AvePoint$419M$42M5.9x5.1x58.4x27.4x
Cellebrite$476M$79M5.4x4.8x32.3x17.3x
A10 Networks$291M$62M6.3x5.7x29.4x19.1x
CETC Cyberspace Security$338M$20M4.5x-73.6x-

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Common questions about Veracode

When was Veracode founded?Veracode was founded in 2006.
Where is Veracode headquartered?Veracode is headquartered in United States.
Is Veracode publicly listed?No, Veracode was acquired by TA Associates in March 2022.
Who acquired Veracode?Veracode was acquired by TA Associates in March 2022.
How much was Veracode acquired for?Veracode was acquired for $2.5B in March 2022.
How much funding has Veracode raised?Veracode has raised $40M across 1 funding round.
What was Veracode's last funding round?Veracode's last funding round was a $40M Series F in September 2014, led by Wellington Management.
Who are Veracode's investors?Veracode's investors include Wellington Management, .406 Ventures, Atlas Venture and DOT Capital.
Which companies are comparable to Veracode?Companies comparable to Veracode include ReliaQuest, Linear, HoneyBook, Transmit Security, Venustech Group and QiAnXin.
How many companies has Veracode acquired?Veracode has acquired 3 companies, including Phylum, Longbow and Crashtest Security.

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