Aqua Security, a startup that helps customers launch containers securely, announced a $62 million Series C investment today led by Insight Partners.
Existing investors Lightspeed Venture Partners, M12 (Microsoft’s venture fund), TLV Partners and Shlomo Kramer also participated. With today’s investment, the startup’s investments since inception now total over $100 million, according to the company.
Early investors took a chance on the company when it was founded in 2015. Containers were barely a thing back then, but the founders had a vision of what was coming down the pike and their bet has paid off in a big way as the company now has first-mover advantage. As more companies turn to Kubernetes and containers, the need for a security product built from the ground up to secure this kind of environment is essential.
While co-founder and CEO Dror Davidoff says the company has 60 Fortune 500 customers, he’s unable to share names, but he can provide some clues like five of the world’s top banks. As companies like that turn to new technology like containers, they aren’t going to go whole hog without a solid security option. Aqua gives them that.
“Our customers are all taking very dramatic steps towards adoption of those new technologies, and they know that existing security tools that they have in place will not solve the problems,” Davidoff told TechCrunch. He said that most customers have started small, but then have expanded as container adoption increases.
You may think that an ephemeral concept like a container would be less of a security threat, but Davidoff says that the open nature of containerization actually leaves them vulnerable to tampering. “Container lives long enough to be dangerous,” he said. He added, “They are structured in an open way, making it simple to hack, and once in, to do lateral movement. If the container holds sensitive info, it’s easy to have access to that information.”
Aqua scans container images for malware and makes sure only certified images can run, making it difficult for a bad actor to insert an insecure image, but the ephemeral nature of containers also helps if something slips through. DevOp can simply take down the faulty container and put a newly certified clean one quickly.
The company has 150 employees with offices in the Boston area and R&D in Tel Aviv in Israel. With the new influx of cash, the company plans to expand quickly, growing sales and marketing, customer support and expanding the platform into areas to cover emerging areas like serverless computing. Davidoff says the company could double in size in the next 12-18 months and he’s expecting 3x to 4x customer growth.
All of that money should provide fuel to grow the company as containerization spreads and companies look for a security solution to keep containers in production safe.