Security Startup LogRhythm Grabs $50M To Stay Competitive

The enterprise security space is ballooning with new players, and one of them wants to remain competitive with its latest funding round.

LogRhythm revealed a $50 million investment round on Wednesday (Sept. 14) led by Riverwood Capital. Adams Street Partners, Siemens Venture Capital, Delta-v Capital and members of the company’s management team also participated in the funding, reports said. New investors also participated, including EDBI, Exclusive Ventures and Silver Lake Waterman.

“We’re in the early stages of a fundamental market shift,” said the company’s president and CEO, Andy Grolnick, in a statement. “Organizations around the world recognize that advanced detection and response capabilities need to be at the core of their cybersecurity strategies, and IT security budgets continue to shift in this direction from a traditionally prevention-centric set of priorities.”

With the new investment, LogRhythm said it will work to continue to differentiate itself from competitors as the industry grows. Reports cited Gartner research forecasting the enterprise security industry to see a $23 billion valuation by the end of the decade.

LogRhythm provides security intelligence and threat detection capabilities to automate security processes within the enterprise. It focuses on reducing the time it takes for a company to detect a threat, reports said.

“As a recognized leader in its field, LogRhythm is well-placed to address the rapidly growing cybersecurity market,” said EDBI CEO and President Chu Swee Yeok in a statement. “Its powerful security analytics and intelligence platform enables companies to quickly detect and respond to cyberthreats, thereby augmenting and boosting cybersecurity resilience.”

A slew of recent cyberattacks, like the ones on Sage and SWIFT, have placed pressure on corporations to safeguard their data, especially in the FinTech world. One SaaS firm, Hypersocket, said the cyberattack on Sage should serve as a wakeup call to threats coming from outside and within companies.