Chainguard, a supply chain security startup founded by a former Google Cloud engineer, recently raised an impressive $356 million in Series D funding. This substantial investment will enable the Seattle-based company to expand its product offerings beyond just protecting container images, to now include safeguarding virtual machines and language-specific libraries. The goal is to cover a wide range of enterprise-used open-source code and mitigate both accidental and malicious vulnerabilities that could compromise the security of widely-used software components.
Co-founder and CEO Dan Lorenc expressed his excitement about the growth opportunity that this funding round presents for Chainguard. He emphasized the importance of proactively raising capital when market conditions are favorable, rather than waiting until it becomes a pressing need. Lorenc highlighted the significance of addressing vulnerabilities in open source code that other vendors may overlook, by essentially rebuilding open-source components from scratch to ensure they are secure and protected before deployment in enterprise environments.
With a workforce of 402 employees and a total of $612 million raised across five rounds of funding, Chainguard has positioned itself as a key player in the realm of supply chain security. Lorenc’s background working on the infrastructure of the Google Cloud platform for nine years has undoubtedly informed the innovative approach that Chainguard is taking to revolutionize open-source security.
The latest Series D funding round comes on the heels of a $140 million Series C funding round just nine months prior. In this short timeframe, Chainguard tripled its valuation to an impressive $3.5 billion, underscoring the growing recognition of the company’s unique value proposition in the cybersecurity landscape. By creating secure versions of commonly used open-source packages and diligently vetting and verifying them internally, Chainguard is setting a new standard for safeguarding critical software components from potential threats.
One of the key challenges that Chainguard seeks to address is the rapid adoption of artificial intelligence (AI) frameworks and libraries, which are being embraced at an accelerated pace across various industries. This swift adoption presents security teams with the challenge of ensuring that projects meet the necessary security requirements before deployment. The need to keep pace with the evolving landscape of open-source technologies is crucial to staying ahead of potential security vulnerabilities.
Chainguard’s strategic focus on expanding its product offerings to include protection for virtual machines and language libraries reflects a comprehensive approach to mitigating risks associated with open source code. By ensuring that all open-source components are secure and vetted, Chainguard aims to provide a trustworthy source for developers and enterprises worldwide. The company’s growth projections, targeting a significant increase in annual recurring revenue from $40 million in 2024 to $100 million in 2025, underscore its ambitious vision for the future.
In conclusion, Chainguard’s successful Series D funding round marks a significant milestone in the company’s journey towards redefining supply chain security and addressing the inherent risks associated with open-source software. With a clear focus on innovation and a commitment to enhancing cybersecurity measures, Chainguard is poised to make a lasting impact on the industry as it continues to expand its product offerings and reach new markets globally.