Empowering the Cloud-First Enterprise: Devo’s Advanced, Cloud-Native Security Analytics Provide a Powerful Defense as the Threat Surface for Business Data Expands Exponentially

‘Cloud-first’ organizations now outnumber on-premise businesses by a ratio of three to one, according to a new report from Devo, a leader in next-generation, cloud-native security information and event management (SIEM), and an exciting addition to our security portfolio, focused on the components of building out a modern security operations center (SOC) that combines endpoint + network + security analytics.

As investors in Rapid7 and Splunk, we’ve gained significant experience in SIEM and we see Devo as the next wave of SIEM for the cloud-native enterprise. We’ve also seen how the threat landscape has evolved on the network side via Vectra, and we backed Webroot, which provides organizations with multi-vector endpoint protection. 

Barriers to cloud adoption were already lower than ever before the pandemic struck—magnifying the benefits of remote/virtual IT infrastructures, software hosting, and data management. The scale of the ensuing enterprise shift to cloud infrastructure and remote hosting has been driving up security complexity and associated volumes of data, so that this now exceeds the capabilities of legacy security toolsets and the capacity of already-overstretched security teams. 

In this context, Devo—with its cloud-native logging and security analytics platform—is having a huge and fast-growing impact. It is saving enterprise security operations teams untold hours of manual analysis as security data volumes soar, by empowering security analysts to cut through the noise and focus on the threats that matter most.

Actionable analytics: the surge in next-generation SIEM

Next-generation SIEM is big business, and in the cloud-first enterprise market Devo is well ahead of this trend. The company, based in Cambridge, Massachusetts, is dedicated to producing the most innovative logging and security analytics platform on the market, and its cloud-native solutions strike right at the heart of current enterprise challenges.

“Digital Transformation, and the massive threat surface associated with it, have elevated security analytics to the centerpiece of frontline cyber defenses. Some of the world’s largest businesses choose Devo because we combine unmatched scale, powerful analytics, and the ability to get answers in real time.

The global market potential ahead of us is absolutely massive, and we’re excited at working with TCV’s sector experts to realize that. What really stands out for us is that the TCV team is as enthusiastic and driven as we are. The new funding validates the disruptive force we have become and sends signal to the industry that we will continue to set the pace for innovation and customer value.”

Marc van Zadelhoff, CEO of Devo

Securing the skies by securing the cloud

Devo has already made a name for itself with some of the most security-sensitive organizations in the world, including the U.S. Air Force, which relies on the company as its central security hub for protection, detection, and response for enterprise defense worldwide. 

Speed and scalability are among its many differentiators: Devo supports thousands of concurrent real-time queries, allowing security teams to query petabyte-sized data sets to answer questions quickly, visualize trends, and perform advanced analytics—so they never miss a critical threat.

Providing unparalleled performance, scalability and clarity, the Devo Platform lets security teams ask more questions, visualize more data, and access valuable analytics to defend and monitor their organization. Its data ingestion capabilities are the industry’s most scalable and flexible. The Devo Platform can ingest data from any source, even if it’s unrecognized or the format changes.

Crucially, it is designed to integrate effortlessly with all of the main enterprise IT environments favored by large enterprises—from software giants like IBM, Microsoft, Oracle, and Salesforce, to the big cloud platforms (Google Cloud, AWS) and network providers (Cisco, Juniper) to some of the biggest names in IT security, including Sophos, Symantec, and Check Point. This enables a consolidated view of the security landscape and a single point of actionable analytics.

Suffice to say, Devo’s potential market is substantial—and global—and to date we believe the company has only skimmed the surface of the opportunity.

Major new funding will drive global & vertical expansion

Devo has cemented its leadership in the next gen SIEM and IT Ops markets with accelerating growth driven by enterprise demand for modern, cloud-first, SaaS based, AI/ML driven tools. TCV is proud to have led Devo’s $250 million in Series E funding round, and we look forward to working with a world-class team to provide a better, faster, and more economic value proposition for enterprise customers around the world struggling to keep up with security and performance blind spots.

We anticipate that the new funding will fuel strong growth across new regions and market verticals, and significantly increase investment in channel expansion and product innovation. Plans include growth in new verticals and geographies including an expanded presence in the public sector, as well as internationally in the Asia Pacific region. 

Building on the rapid adoption of Devo as the platform of choice for leading resellers and managed security services providers (MSSPs) across the globe, the company is also redoubling its commitment to the channel and integration partners. Devo also expects to invest heavily in technology alliances, content, and people to build out a global security community to usher in a new era for the industry.

Powered by great people

Of course, it’s the people that make a remarkable and investable business, and again this is where Devo shines. The company is made up of some of the world’s brightest minds, all respected experts in their fields yet from diverse backgrounds—giving Devo breadth as well as depth in its market experience. 

CEO Marc van Zadelhoff took the helm as CEO a year ago, marking the start of a momentous year for the company. He has brought to the company some 20 years’ experience working in cybersecurity for organizations globally, most recently as the COO for LogMeIn, and before that as General Manager for IBM Security—a IBM Business Unit he co-founded. Since assuming leadership of Devo, Marc has driven the company to new heights, evidenced by: 

  • Nearly 100% year-over-year revenue growth
  • Over 100% customer growth, including H&R Block, Manulife, FanDuel, Ulta Beauty and AMEX Global Business Travel
  • More than 400 employees across North America, Europe, and APAC
  • Addition of industry-proven leaders including CSO Gunter Ollmann, SVP of Product Ted Julian, CCO Johannes Loeffler and CFO Jennifer Grunebaum
  • Launch of Devo Content Stream, a new high-value content delivery service for Devo customers

The team Marc is building around him is impressive, combining subject matter expertise and commercial depth. 

Devo and its people are the ideal fit for TCV’s investment strategy. Our track record of supporting portfolio companies for the long term as a crossover investor is well established, and our well-documented successes with other high-growth tech businesses at the intersection of cloud, networking, and security (including Cradlepoint, Silver Peak, HashiCorp, Splunk, Vectra, Rapid7, and Venafi, and more recently Aviatrix) provide a strong hint at the ambitions we have for Devo.

We can’t wait to roll up our sleeves and help Devo capitalize on its global potential.

***

The views and opinions expressed are those of the author and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any of the data or statements by the author and disclaims any responsibility therefor. This blog post 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 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 interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


Devo Announces $250 Million Funding Round Led by TCV

CAMBRIDGE, Mass., Oct. 26, 2021 (GLOBE NEWSWIRE) — Devo Technology, the cloud-native logging and security analytics company, today announced $250 million in Series E funding at a valuation of $1.5 billion. TCV led the round, along with new investors General Atlantic and Eurazeo and existing investors Insight Partners, GeorgianBessemer Venture Partners, and Kibo Ventures

A recent report from Devo revealed the speed at which businesses have accelerated past the cloud tipping point—with cloud-first organizations now outnumbering on-premise organizations by a ratio of three-to-one. Devo is serving as the only credible “go to” in the cloud for large customers needing sophisticated security analytics and enterprise logging at scale.

“Digital transformation, and the massive threat surface associated with it, have elevated security analytics to the centerpiece of frontline cyber defenses,” said Devo CEO, Marc van Zadelhoff. “Pedro Castillo and our founders built Devo for this transformation, and now the world’s largest businesses choose us because we combine unmatched scale, powerful analytics, and the ability to get answers in real time—fundamentally changing how security teams interact with their data. This new funding validates the disruptive force we have become and sends a signal to the industry that we will continue to set the pace for innovation and customer value.”

Devo’s expansion plans include growth in new verticals and geographies including an expanded presence in the public sector, as well as internationally in the Asia-Pacific (APAC) region. Building on the rapid adoption of Devo as the platform of choice for leading resellers and managed security services providers (MSSPs) across the globe, the company is also redoubling its commitment to the channel, cloud and integration partners. Devo will also invest heavily in technology alliances, content, and people to build out a global security community to usher in a new era for the industry.

Gopi Vaddi, General Partner at TCV, who is joining the Devo Board of Directors said, “We’re thrilled to invest behind Devo’s visionary founders who have built a category-disrupting product suite, in addition to Marc van Zadelhoff who joined as CEO last year and has commercialized the company further by recruiting a seasoned team of executives. We look forward to working with existing investors Insight, Georgian, Bessemer, and Kibo Ventures, who have guided the company to its current stage, as well as new investors General Atlantic and Eurazeo.”

Also joining the board is Gary Reiner, Operating Partner at General Atlantic.

The funding event also marks what has been a momentous first year in the tenure of CEO Marc van Zadelhoff. Since assuming leadership, he has driven the company to new heights, including:

  • Nearly 100% year-over-year revenue growth
  • Over 100% customer growth, including H&R Block, Manulife, FanDuel, Ulta Beauty and AMEX Global Business Travel
  • More than 400 employees across North America, Europe, and APAC
  • Addition of industry-proven leaders including CSO Gunter Ollmann, SVP of Product Ted Julian, CCO Johannes Loeffler and CFO Jennifer Grunebaum
  • Launch of Devo Content Stream, a new high-value content delivery service for Devo customers

About Devo

Devo is the only cloud-native logging and security analytics platform that releases the full potential of your data to empower bold, confident action. With unrivaled scale to collect all of your data without compromise, speed to give you immediate access and answers, and clarity to focus on the signals that matter most, Devo is your ally in protecting your organization today and tomorrow. Headquartered in Cambridge, Mass., Devo is backed by Insight Partners, Georgian, TCV, General Atlantic, Bessemer Venture Partners, Kibo Ventures and Eurazeo. Learn more at www.devo.com.

About TCV

Founded in 1995, TCV was established with a clear vision: to capture opportunities in the technology market through a specialized and consistent focus on investing in high-growth companies. Since inception, the firm has built a track record of successfully backing private and public businesses that have developed into dominant industry players across internet, software, FinTech, and enterprise IT. TCV has helped guide CEOs through more than 140 IPOs and strategic acquisitions. TCV has invested in cutting edge technology companies including Airbnb, Aviatrix, GitLab, HashiCorp, Klarna, Mollie, Netflix, OneTrust, Peloton, Rapid 7, Redis, Splunk, Spotify, Vectra AI, and more. TCV has successfully executed over 350 investments of varying structures, including mid-stage, late stage, and public company investments, and has offices in Menlo Park, New York, and London. For more information about TCV, including a complete list of TCV investments, visit tcv.com.

Devo PR Contact:
Shannon Todesca
shannon.todesca@devo.com
+1 (781) 797-0898

TCV PR Contact:
Katja Gagen
kgagen@tcv.com
+1 (415) 690-6689