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.
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.
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/.
On the heels of the final rounds of the 50thUS 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
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.
Depending on where you look, the number of connected devices, or ‘things’, out there is now in the region of 8.4 billion. That’s a large number, but it’s barely the start. By 2020, Gartner expects this total to jump to over 20 billion.
Importantly, this staggeringly fast growth of connectivity for consumer and enterprise use cases necessitates a high-performance network infrastructure and services and 5G will help take the industry to this next level.
In an era where just about everything will be connected—from the familiar smartphone to the connected robot, car or enhanced media distribution—there is a demand to share more wireless data.
3G arrived at the millennium, bringing us a major step forward in wireless connectivity speed. It offered connection speeds of around 380Kbps. The arrival of 4G networks built on that to deliver up to 100Mbps—the performance level many of us are familiar with today.
Even though 5G will be 10 times as fast, it won’t replace 4G in the same way that 2G (and gradually 3G) have been superseded since 4G’s arrival. 5G and 4G will work in complementary fashion to handle different types of traffic most efficiently. 5G remains in a technical trial stage as the standards for mobility and network interoperability continues being developed. Early commercial deployment is expected to start in late 2018. Yet, once the standards are set, there’s no turning back – 5G will be a catalyst for new applications and new opportunities that are just waiting to be imagined.
At the leading edge of this industry is Cradlepoint, an international market leader providing wired and wireless connectivity and networking solutions for distributed and mobile enterprises. Founded in 2006, the company has been at the forefront of providing 3G and LTE networking solutions for enterprises. The company was first to market with LTE routing solutions. It now has 18,000 customers worldwide and has shipped more than 1.7 million cellular routing platforms.
Doug Gilstrap: If we believe everything we hear about 5G, it’s all expected to really start happening in 2018. Is that hype or hope?
George Mulhern: The technical trials are underway as we speak. The commercial production testing will start in 2018. There are already many 5G trials taking place around the world and 5G-ready base stations have been deployed by the major vendors. They’re already using some of the new spectrum for 5G both licensed and unlicensed spectrum, and the expectation is that it will be commercialized in 2019 and 2020.
Doug Gilstrap: When (and how) does 5G displace 4G? When will it be the new norm?
George Mulhern: 5G and existing LTE technologies are going to coexist for quite a while.
We’ll start to see some limited early deployments in 2018, and it’ll grow from there—but it’s not going to completely displace 4G. In fact, some of the early deployments will be based on the LTE core—so they’ll coexist. That’s going to be important for customers because they’re looking for a transition.
It’s not going to be a light switch moment where they wake up one morning and 5G is everywhere. It’s going to be expanding over the next two, three, four years. It’ll be a significant improvement to the wireless capabilities as it gets rolled out.
Doug Gilstrap: What’s 5G’s selling point? What benefits can 5G adopters expect?
George Mulhern: Efficiency. We see 5G offering significant cost savings to operators and end users.
Our customers with many sites, branch locations and IoT needs (buses, police cars etc.), can expect better performance with advances towards 5G. This means no lead time to connect and wait for broadband digs, so any new high-speed broadband connectivity can be met instantly.
Also, with 4G Advance and 5G inter-workings, some of our enterprise customers will have better performance compared to the existing fixed line infrastructure in place today.
For customers with massive amounts of logistics and transportation needs, the new 4G/5G data plan charges plus our hardware and software solution makes the implementation, the monitoring, and the usage tracking affordable. And the productivity gains will be impactful. This technology will be price competitive and offer a variety of physical and logical diversity for all our clients.
We’re seeing the operators charging hard into the mobile enterprise space as the next wave of market opportunity, and we are here, hand in hand with our solutions to help make it happen.
Doug Gilstrap: Is everything going to be wireless with 5G?
George Mulhern: Because of the 10X performance improvement, 10X latency improvement and capacity improvement, 5G is going to be a tremendous technology. It’ll be a dominant last mile technology, but I don’t think the wires are going to go away entirely.
It’s like when email first hit, and people predicted the post office would disappear. Email opened the way for a whole host of new applications and capabilities, but didn’t completely displace the older technology, although its role in communications has been significantly diminished.
Any time you get something as flexible as wireless that provides the kind of performance and capabilities people need, I think they’re going to naturally migrate towards that. It happened on the LAN with Wi-Fi. It’s happened in the Personal Area Network with Bluetooth. And it will happen on the WAN as well. I would bet Doug’s paycheck on it…
Doug Gilstrap: Thanks…! Do you expect there’ll be a different take-up in different countries, unlike 4G?
George Mulhern: The race to 5G is full on right now. It is likely that many of the same countries who led the way to 4G/LTE will be early to the 5G market. Carriers in the United States, Korea and certain countries in Europe were early movers in LTE and are investing very heavily in 5G right now. Japan is also investing heavily in 5G and plans to have the network built out when they host the Olympics in 2020.
5G is very important to the carriers/operators because it opens up a much broader set of applications and markets to them. The mobile phone market has been a tremendous growth opportunity on the consumer side and especially the evolution to mobile broadband (3G+/4G), but it is saturated, and the operators are now really focused on growth in the wireless side for the enterprise. Examples include fixed wireless access to the enterprise, which is core to Cradlepoint, and we look to provide solutions for growth in other areas as well. 5G will provide opportunities in Fixed Wireless Access (FWA) for enterprise and residential (video), Internet of Things applications, autonomous vehicles, etc. That hits home for companies like Cradlepoint who can help deliver these new applications and services to the end customer.
George Mulhern: Now, let me ask you, who do you think will benefit the most, consumers or the enterprise—and what industries will be early adopters?
Doug Gilstrap: I think both enterprise and consumers are going to benefit tremendously from this battle among carriers to get solutions to market first. We have seen the industry pull in their timelines for 5G from what they were, and they’re currently selling 5G-ready radios and are in 5G trials with many of the largest operators. We’ll see the commercial first movers with the device versions in the latter half of 2018.
For the enterprise specifically, there are a lot of use cases that will need lots of bandwidth, so operators are utilizing different options across the 5G spectrum such as 3.5 gigahertz and 28 gigahertz because more capacity is needed to meet enterprise needs—and not just speed, it’s throughput as well.
Think of mission-critical applications for the enterprise, where there’s a lot of imaging needs and where a lot of data throughput has to be in real time with no jitter because people are using that data to make decisions. Or think of the oil and gas or utility industries which have remote diagnostics and imaging requirements.
There’s also healthcare where imaging and X-rays need to be shared because professionals are doing their work remotely. It will also be massive for video distribution to the enterprise or to the consumer residential markets. These require high-end bandwidth and low latency for quality of service. Any mission-critical application that requires that fits 5G very well.
On the horizon are consumer applications such as augmented reality, virtual reality, and the autonomous car. If you consider all the sensors and the data transmission that has to go back and forth—from the speed of the car to the cars on the road and changing road conditions—there’s so much going on. It’s low latency and high throughput.
Doug Gilstrap: How should enterprises think about preparing for the deployment and adoption of 5G? What are best practices and pitfalls to avoid?
George Mulhern: My advice for enterprises preparing for 5G would be: Don’t wait.
Start incorporating LTE into your organizations now. With gigabit LTE commercially available on multiple operator networks, you can get much of that performance already. In the digital economy, it’s the companies that can move with speed, agility and gain insight that will succeed. Incorporating wireless into their business today not only prepares them for 5G, but they’ll start to reap some of those benefits much earlier than their competitors.
Doug Gilstrap: How do businesses really take advantage of LTE and 5G? Because it’s not easy. You can’t just say, “Oh, I’m going to implement 5G, and we’re ready to go.” It’s gigabit LTE as well.
George Mulhern: Each customer has their own priorities and strategic goals. We have customers today using LTE as their only WAN source for their branch offices. Others are using it for temporary networks (a pop-up store for example), or air-gapped networks for security reasons. Smart City applications like connecting traffic lights, Wi-Fi in businesses, connected police cars, digital signage, surveillance cameras, kiosks, the list of “things” being connected now is endless.
What’s ideal for retail and transportation can be different than what’s needed in the public sector or in financial services, however high speed, secure mobile access fits in with each of these verticals.
It is our view that this next generation of edge networks need to be much more agile and flexible. They need to be able to expand, contract, and incorporate new applications as business needs dictate. We call it the Elastic Edge. These networks will be Software-Defined, Cloud Orchestrated, Wireless and much of the time delivered as a service to the customer. Therefore, 5G will be a game changer in terms of flexibility, agility, performance, and cost.
Doug Gilstrap: George, what’s the fastest chipset that you will have in your routers from a theoretical chipset speeds standpoint for 4G advanced next year?
George Mulhern: Today we know that there are many operators that have commercially launched LTE Advanced 1 Gigabit services and our solutions will support this gigabit speed. As 5G moves above the 1 Gigabit level to 10 Gigabits, so will we, supporting gigabit speeds on our platform in 2018, as those networks become available to the enterprise.
Our goal will always be that our solutions will be able to operate as fast as the networks will support.
TCV is an investor in Cradlepoint and Doug Gilstrap serves on the board of directors of the company.