With venture capital flowing into the cybersecurity space at a record level, investors continue to hunt for the next big thing.
In the last two months, that has meant looking at how applications talk to each other — and how to protect the data and services that flow through them between application programming interfaces, or APIs as they are more commonly called.
“We get multiple emails a week from investors sniffing around,” said Larry Link, CEO of Sunnyvale, California-based API security provider Cequence Security. “We see interest from PE, from growth venture — they all want to play in this space.”
That is not the only round API security providers saw in the last several weeks. Last month, London-based 42Crunch raised a $17 million Series A. Later that month, Palo Alto, California-based Salt Security closed a $70 million Series C — raising the total amount of funding the company has seen in the last year to $120 million. Earlier this month, Colorado-based ThreatX announced it had closed a $10 million round.
“Right now there is a lot of money flying around out there,” said Greg Dracon, a partner at .406 Ventures, which invested in ThreatX and described the round as competitive from the investor’s side.
