Traceable AI, an API security & observability company, has raised $60 million in Series B funding. This new funding has put the startup value at more than $450 million. This investment round was led by Institutional Venture Partners (IVP), and other investors include Tiger Global Management and existing investors Unusual Ventures and BIG Labs.
Traceable AI plans to use this round of funding to invest in its product development and research efforts, expanding its sales and marketing teams, and global sales.
“API security has become a major security and compliance concern for most companies,” said Steve Harrick, general partner, IVP. “Traceable offers a fundamentally differentiated solution that provides coverage across the full DevSecOps software lifecycle — from API development and testing to runtime protection. The company is led by Jyoti Bansal and Sanjay Nagaraj, proven entrepreneurs who we have been fortunate to work with before. They listen to customer needs and know how to deliver software at scale.”
Traceable was started two years ago by AppDynamics and Harness founder Jyoti Bansal and former AppDynamics VP of Engineering Sanjay Nagaraj through a $20 million Series A in July 2020.
“Widespread use of APIs in cloud-native applications has led to a significantly larger attack surface, intensifying the challenge of protecting these APIs from malicious usage or abuse,” said Bansal. “Bad actors only need one API entry point to access an organization’s data and cause irreparable financial, reputational and service interruptions damage. Traceable AI applies the power of machine learning and distributed tracing to truly understand how an application really works in the context of the business, and therefore, be able to detect anomalies and block threats to keep customers secure and resilient against next-gen attacks.”
By leveraging the team’s expertise in distributed tracing and observability, Traceable AI says that it discovers, manages and secures APIs for enterprise-level organisations. Their differentiated capabilities provide coverage for the most important API security use cases, including API discovery, sensitive data exfiltration, and detecting and blocking attacks such as account takeover, API abuse and API fraud.
“Given that APIs are the core engine of any software model today, it’s imperative that we secure them to protect the business”, said John Vrionis, partner at Unusual Ventures. “We are extremely excited to be a part of the Traceable team and their continued efforts to help enterprises secure their most important software asset – APIs.”