HyTrust Raises $33M to Cement Leadership Position in Cloud Security
New funding will be used to support product development and innovation, accelerate sales and marketing, and boost international expansion
Mountain View, CA – HyTrust, the Cloud Security Automation Company, today announced that it has secured $33 million in new funding, including $8M in venture debt and credit facilities, from a syndicate of venture capital firms and strategic investors. The latest round of investment will used to build on the company’s existing momentum in cloud security automation, specifically to boost marketing, sales and product development initiatives, as well as expansion into international markets.
The new investment is being led by Sway Ventures, a venture firm founded by successful entrepreneurs and VCs to identify high-growth companies where they can leverage their strategic ecosystem to ensure US and EMEA commercialization and revenue growth. HyTrust also welcomed Canadian investor Vanedge Capital, which targets investments in disruptive enterprise software companies that provide cloud enablement and IT security. All existing venture investors —Epic Ventures, Granite Ventures and Trident Capital—and strategic investors —Cisco, Fortinet, Intel Corp. and VMware, representing the biggest players in cloud infrastructure —also participated in this round. In addition to the $25M equity investment from this syndicate, HyTrust has expanded its relationship with banking partner City National Bank to fund up to $8M in venture debt and credit facilities to provide the company the flexibility to support future growth and expansion.
“HyTrust is perfectly positioned to meet the needs of a market in which so many organizations are building on cloud-based technologies to increase agility for their business,” said Brian Nugent, founding principal and general partner at Sway Ventures. “Security is a critical enabler for cloud adoption, and we believe this is a company that is poised for tremendous market growth. We look forward to leveraging our strategic ecosystem to help the company expand on a global basis.”
Brian Nugent will join HyTrust’s board of directors, while Sway Ventures co-founder and general partner, Bill Malloy, and Moe Kermani, a partner with Vanedge Capital, will join as board observers.
“We are excited to have such strong backing from this unique syndicate of major venture and strategic funds. This new round of funding is critical, given the tremendous growth in the market, and confirms HyTrust as the clear leader in private and hybrid cloud security,” said John De Santis, Chairman and CEO of HyTrust. “At a time when massive data breaches are so frequent, sophisticated and devastating, data center security has become a top priority in every corporation. Our goal at HyTrust is to make security automated and policy based to address the needs of private and hybrid cloud data centers, as well as provide complete visibility into what is happening in cloud environments. This is the best way to benefit from cloud-based capabilities while guarding against brand damage and severe financial losses.”
In just about every vertical industry, virtualized infrastructures and cloud computing are having a major impact on the need for security, compliance and operational assurance for cloud infrastructure and data. The emerging generation of data centers is extremely complex, and strains many corporations’ ability to ensure availability, compliance and data security. HyTrust solutions play a critical role in this equation by enabling the adoption of next-generation architectures through policy-based controls, visibility and data security. This in turn helps enterprises more easily meet compliance mandates, improve application uptime, and securely take advantage of cloud-based capabilities.