Cervin Ventures led the round with participation from Sierra Ventures, Tau Ventures, and several individual investors. The company will use the funds to expand their go-to-market efforts and AppSecOps platform capabilities.
Why We Invested
AppSecOps is a new market following on the success of the Cloud Security Posture Management market.
Cloud Security Posture Management (CSPM) is a market segment for IT security tools that are designed to identify misconfiguration issues and compliance risks in the cloud. An important purpose of CSPM programming is to continuously monitor cloud infrastructure for gaps in security policy enforcement. Early companies like Redlock and the ArmorCode team’s previous startup, Avid Secure, pioneered the space which is now dominated by many of the leaders in Security Software such as Palo Alto Networks (which bought Redlock for $173M).
The next stage in this market evolution is the Application Security Market, which is growing rapidly from about $6B in 2020 to $34B in 2030 for a CAGR of 19%. Since this is a nascent market, it is assumed that one section of the market called Posture Management will be 15% - 20% of the application security market in a year or so and growing to about 25% - 30% over time. That is a large market of about $8B in 2030, according to Valuates Reports.
What ArmorCode offers goes beyond just Application Security Posture Management (ASPM). ArmorCode addresses the increased reliance on cloud services for business operations, the transition to agile development, and the rise of microservices. They are an AppSec Force Multiplier™, not just scaling ASPM but also scaling compliance and vulnerability management, and DevSecOps workflow automation all from a single platform; without the need to significantly grow the team, tools, or training.
We are excited to have the opportunity to partner with the founders of ArmorCode and are excited to see what the future has in store for them. We welcome ArmorCode to the Cervin family.