Bugcrowd, a cybersecurity startup renowned for crowdsourcing hackers, has successfully raised $102 million in Series E funding to fuel its expansion plans, hire additional staff, and explore potential acquisitions, as revealed by Chief Executive Dave Gerry, according to Reuters on Monday.
The company, originally founded in Australia in 2012 and now with offices in San Francisco and Sydney, maintained secrecy about its valuation following the investment round led by General Catalyst. Other contributors included Rally Ventures and Costanoa Ventures.
Bugcrowd, which rewards developers for identifying bugs in companies’ codes through its bug bounty program, experienced a remarkable revenue surge of over 40% in 2023. This growth can be attributed to the introduction of new partners and services within its bug bounty program. Despite Gerry not disclosing the exact revenue figures, he confirmed that the annual revenue has yet to reach the $100 million mark.
The newly acquired funds will be instrumental in Bugcrowd’s strategic plans to expand its workforce by hiring an additional 100 staff members, increasing its total headcount to 450. This move aligns with the company’s broader strategy to extend its market reach beyond the U.S., which currently contributes to 70% of its revenue.
Bugcrowd, boasting around 1,000 global customers, including notable names like OpenAI and T-Mobile, is contemplating potential acquisitions in the security service market. Dave Gerry, who assumed the role of Chief Executive in November 2022 and subsequently restructured the management team, aims to leverage the funding to continue delivering value to clients and hackers while realizing the company’s full potential.
Mark Crane, the partner from General Catalyst leading the investment, and Paul Sagan, a senior advisor at the same firm, are set to join Bugcrowd’s board as part of this latest funding round.
