Venafi Secures $100M Financing Round Led by TCV

Salt Lake City–November 29, 2018–Venafi®, the leading provider of machine identity protection, today announced the closing of a $100 million round of financing, led by TCV with additional participation from existing investors, QuestMark Partners and NextEquity Partners. TCV is one of the largest and most respected providers of capital to growth-stage private and public companies in the technology industry and has backed industry-leading companies, including Airbnb, Alarm.com, Cradlepoint, Genesys, Netflix, Rapid7, Silver Peak, Splunk, Spotify and Zillow. As part of the transaction, TCV general partner, Jake Reynolds, joins Venafi’s board of directors.

The funding will be used to accelerate Venafi’s growth and to cement the firm’s growing market leadership. In addition to fueling growth, $12.5 million of the investment will be made available to third-party developers in the first tranche of the new Machine Identity Protection Development Fund. Venafi created the fund to accelerate the integration of machine identity intelligence into a wide range of machines in the enterprise and further enhance and expand the machine identity ecosystem. The fund will allow developers, including consultancies, systems integrators, fast-moving startups, open source developers and cybersecurity vendors to apply for sponsorship. This sponsorship will allow recipients to build integrations that deliver greater visibility, intelligence and automation for Venafi customers across any technology that creates or consumes machine identities.

“Identity is the foundation of security,” said Jeff Hudson, CEO of Venafi. “The cyber world is made up of machines, and all machines require identities for the cyber world to be secure. As a society, we understand the risks associated with human identity theft very well, and we spend over $8 billion per year protecting human identities. However, most organizations don’t yet understand the risks associated with machine identities and, as a result, spend almost nothing to protect them. This leaves our global digital economy at risk. TCV has a long history of partnering with the world’s leading technology firms, so we’re very excited about the opportunity to work with them. Their investment and expertise will help us ensure that the world’s machines, including hardware and software from smart machines, virtual servers, applications, containers, and more, are connected, safe and secure.”

Just as usernames and passwords are used to identify and authenticate humans, machine identities enable the trusted relationships between machines that control the flow of sensitive data. Because machine identities are poorly understood and often unprotected, they are subject to being exploited by cybercriminals. The Venafi platform protects the machine identities whose underlying technology is cryptographic keys and digital certificates by providing unparalleled visibility, intelligence and automation.

“The team at TCV is excited about our partnership with Venafi,” said Jake Reynolds, general partner at TCV. “DevOps and IoT are driving growth in the number of machines thanks to cloud computing, virtualization, and the proliferation of connected devices. Venafi is well-positioned to provide the machine identity protection for enterprise machines, and we look forward to supporting the Venafi team as they continue to scale in this rapidly expanding market.”

With over 30 patents, Venafi delivers innovative machine identity protection solutions for the world’s most demanding, security-conscious Global 5000 organizations, including the top five U.S. health insurers; the top five U.S. airlines; four of the top five U.S. retailers; and four of the top five banks in each of the following countries: U.S., U.K., Australia and South Africa.

For more information about the fund please visit: https://www.venafi.com/machine-identity-protection-fund

About Venafi

Venafi is the inventor and cybersecurity market leader in machine identity protection, securing connections and communications between machines. Venafi protects machine identity types by orchestrating cryptographic keys and digital certificates for SSL/TLS, IoT, mobile and SSH. Venafi provides global visibility of machine identities and the risks associated with them for the extended enterprise—on premises, mobile, virtual, cloud and IoT—at machine speed and scale. Venafi puts this intelligence into action with automated remediation that reduces the security and availability risks connected with weak or compromised machine identities while safeguarding the flow of information to trusted machines and preventing communication with untrusted machines.

For more information, visit: www.venafi.com.

About TCV

Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since inception, TCV has invested over $10 billion in leading technology companies and has helped guide CEOs through more than 115 IPOs and strategic acquisitions. TCV’s investments include Airbnb, Altiris, AxiomSL, Dollar Shave Club, EmbanetCompass, EtQ, ExactTarget, Expedia, Facebook, Fandango, GoDaddy, HomeAway, LinkedIn, Netflix, OSIsoft, Rent the Runway, Sitecore, Splunk, Spotify, Varsity Tutors, and Zillow. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit https://www.tcv.com/.

Contacts

Venafi
Shelley Boose
shelley.boose@venafi.com
408.398.6987

TCV
Katja Gagen
kgagen@tcv.com
415.690.6689


Match Play: Lessons in Leadership

On the heels of the final rounds of the 50th US Open Tennis Championship, TCV’s General Partner John Doran sat down with George Mulhern, former tennis pro and CEO of Cradlepoint to discuss lessons learned on and off the court. In addition to being CEO of Cradlepoint, a global leader in cloud solutions for 4G/5G-enabled networks, George has been instrumental in driving economic growth in the Northwest region as a venture capitalist. Throughout his 20+ year career, George has drawn on his experiences on the tennis court to succeed through the highs and lows of the ultra-competitive tech industry.

Key takeaways include:

  • How to develop a competitive mentality that keeps you focused
  • The right attitude for responding to adversity
  • Why the mindset of your company’s culture determines long-term success

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John Doran: It’s not every day I get to talk with a fellow tennis player about what the game can teach tech founders and CEOs. How far did your tennis career take you?

George Mulhern: I went to college on a tennis scholarship and then played for a short time on the American Express Satellite tour, which is like the minor league of professional men’s tennis. That was far enough to know that I would have to make my living doing something else.

John Doran: What did tennis teach you about competing in the technology business?

George Mulhern: One of the most important competitive things you learn in tennis is to never give up when you are behind. You can turn around a match completely, like a major pivot in technology, if you keep your head and adjust your strategy and tactics. It truly is not over until it’s over. An equally valuable lesson, one you usually learn the hard way, is to never let up when you are ahead. If you lose momentum it is much tougher to get back on top, and you also give a big shot of confidence to your opponent. The same is true in business. You can never rest on your past successes. Every day is a new game and you have to approach it with the intention and intensity to win.

John Doran: Pro players often talk about knowing their competition and anticipating how a certain player will try to compete against them. Do you see parallels in your business life?

George Mulhern: My experience was that no matter how much you study your competition before a match, it is impossible to completely predict how they will behave. It is more important to have keen situational awareness, flexibility in your own game and the agility and willingness to rapidly adapt. Then you’re ready no matter what the opponent comes at you with.

John Doran: In tennis, top players often try to balance their strengths and stamina and stay in a match with a view to turning around the momentum. Has there ever been a time when you would conserve energy against an opponent in a long match?

George Mulhern: The context for those comments is that players today are achieving a level of conditioning that is unprecedented for tennis. They’re hitting harder and running more for every ball. So you can win a match by outlasting the other player, not just outplaying them. The same is true in technology. If you are investing enough time and effort into that level of conditioning, you don’t need to conserve your energy. Your competitor should run out of gas before you do. By conditioning I mean ensuring that you have, or are acquiring, the skills and capabilities your company needs to sustain success for as long as you stay in business.

John Doran: It’s often said that success in tennis is as much about the mental side of the game as it is about physical talent.  In your world now, as CEO, having a strong mental game is fairly pivotal as well. How do you keep your mental game sharp in the tech business?

George Mulhern: There are all kinds of distractions when you are playing competitive tennis: fans, competitors, weather, injuries, illness, even the last shot you missed. You need the mental toughness to put all those things aside and focus on what is most important, which is the point you are playing right now. It is the same in the tech business. The distractions are different – there is always the latest shiny object grabbing at your attention – but the challenge is the same. You have to stay focused on the key value drivers of your business.

John Doran: On the WTA tour, I understand that coaching is now allowed during matches at certain times, giving the coach a potentially bigger influence on the outcome of a match. Can you share any feedback that you took from your tennis coaches over the years that you still use today?

 George Mulhern: My college coach, whom I now think of more as “Yoda,” taught me it’s not about who has the best strokes or shots. It’s about a simple decision you have to make: (Yoda voice) “Winner, do you want to be?” If you do want to win, then the challenges of becoming a winner don’t feel like a sacrifice. They energize you. You are more than willing to put in the hours of practice and conditioning. You embrace the need to change something in your game if that’s necessary, and you summon the courage to fight until the last shot of the match even when you’re tired and it starts to feel hopeless.

John Doran: Applying the coaching metaphor to your business experience, what kind of performance feedback is most valuable?

George Mulhern: Direct and honest is the best. As you rise in an organization, more people will tell you how great you are. You have to find the folks that will tell you the things that aren’t so positive and nice to hear. As you move into higher levels of leadership you need to grow a thicker skin, but with some permeability so you can accept critical feedback and not over-personalize it. It’s just business. You use the feedback to improve and move on.

John Doran: One of the commonalties about this generation of top tennis players, especially in the men’s game, is the ability of the top players to continually improve and add to their games, allowing people such as Federer, Nadal, and Djokovic to stay on top for so long. In the business and technology world, how do you ensure you’re making the necessary improvements to your game to stay ahead of the competition?

George Mulhern: My first year of college tennis, it really hit home to me that I had to get better every day, because there are a whole bunch of other guys out there who certainly are. It is the same in technology. Every technology company’s culture has to instill a sense of urgency and willingness to embrace and adapt to change. Your existing competitors are striving to improve, new competitors are starting up, and they all want to take your market share. At Cradlepoint we say, “stay humble and hungry, or you will be.”

John Doran: Even the greatest tennis players of all time have lost big matches throughout their careers. What can business leaders learn from that? How do they recover?

George Mulhern: It’s one match. Learn from it, adapt where you need to, and get over it. People in your organization will take their cues from you and react the way you do, so don’t run around like your hair is on fire. Just go to work on finding the path to the next success.

John Doran: Did any of the great tennis players of the past inspire you in ways that affected your success in business?

George Mulhern: One of my life lessons came from a tennis idol of mine – Arthur Ashe. When he was asked what it takes to become a champion, he said “start where you are, use what you have, do what you can.”  Whenever I am faced with what seems like an insurmountable challenge or problem, I remember that quote.  If you just take that first step, the next step becomes clearer, and then so does the next.

John Doran: Thanks so much for your insights, George.

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TCV is an investor in Cradlepoint.

The views and opinions expressed in the transcript above are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). This transcript is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified above, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this document, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/