Cloud-Security Firm Zscaler Completes a $110 Million Funding Round
California-based cloud security company Zscaler has just raised $25 million from Google Capital, adding to an oversubscribed round of funding amounting to $85 million from August.
The cybersecurity industry is thriving, and companies with promise and potential are bringing in plenty of investment.
The latest company to get a boost in its financing is Zscaler, a cloud security firm headquartered in San Jose, California. In its most recent round of funding, the company raised $25 million from Google’s equity investment arm that focuses on late-stage financing – Google Capital.
The investment adds to an oversubscribed round that Zscaler raised in August, to the tune of $85 million, bringing the total funding to $148 million. With the latest round, the company’s financing has quadrupled in the last couple of months.
Jay Chaudhry, founder and CEO of Zscaler states that was patient in waiting for the right partner and Google duly came around to close the round of financing. Speaking to Reuters, he said:
There is a natural intersection between Google customers and our customers.
Zscaler specializes in providing security for cloud applications for over 5,000 companies, businesses and organizations, many of whom are using Google’s cloud applications and services.
The latest round of funding is also the last private financing foray before the company goes public, Chaudhry says.
Although declining to say when the IPO comes around, he points to the hiring of a chief financial officer in a new role this March, to ensure everything was in order and ready to adhere to regulations from a financial point of view.
Chaudhry also notes that with the latest round of funding, the company is valued over $1 billion.
Cybersecurity is currently gaining plenty of investment and Zscaler’s round of financing follows the recent news of a $125 million investment fund set up by former executives and investors from security software maker AVG, looking to tap into the cyber security market.
According to data analyzed from CB Insights and Bain Capital Ventures by Reuters, cybersecurity investments on a global scale so far this year has exceeded $2.3 billion. That’s on track to beat the $2.5 billion from 2014 and already bigger than $1.7 billion in 2013.
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