Axonius Secures $200M, but Maintains $2.6 Billion Valuation

Axonius, a US cyber asset management startup, secured an additional US$200 million Series E extension investment by venture capital firms Lightspeed and Accel, maintaining its valuation at US$2.6 billion. Despite projected annual recurring revenue exceeding US$100 million and a large customer base, Axonius will not seek a new round of funding, reflecting its commitment to conservative valuations in healthy companies.

The decision to opt for an extension rather than a new financing series was not explicitly commented on by investors or Axonius. However, this choice reflects the preference of healthy companies to maintain more conservative valuations, especially in more advanced, growth-focused investment rounds. This strategy is with the intention of avoiding exposing core capital, therefor opting for a long-term approach.

"I did not feel the need to increase valuation since the last round," said Dean Sysman, CEO and Founder of Axonius. "I never optimize valuation just as we approach a financing round. We optimize for what is best for the company in the long term and we see ourselves as a very, very long-term strategy because of the size of our problem and the market we are targeting." 

Despite budget strains in the IT and technology space, evidenced by human capital cuts at various companies, Axonius has experienced steady growth, with projections to exceed US$100 million in annual recurring revenue (ARR) and a customer base that includes more than 500 large enterprises in less than five years since its launch in 2017. Consolidated companies such as Schneider Electric, News Corp, and Anheuser-Busch InBev already rely on Axonius growth strategy.

Cybersecurity is at the heart of today's business strategy, and understanding the attack surface is a crucial element. In an increasingly complex business environment characterized by cloud services, containerization, big data analytics, and a diversity of connected devices, Axonius seeks to stand out as an end-to-end solution. It provides near real-time network solutions, from on-premise to cloud environments, providing companies with tools to detect unusual changes and suggest relevant actions.

"Axonius clearly fits the bill. Its growth path speaks for itself: being one of the fastest cyber companies on record to achieve a $100 million ARR, reaching 1,000 platform integrations and having evolved from a single-product asset management company to a broader management platform that controls the entire enterprise digital footprint. They are on their way to becoming a household name for any cyber or IT buyer," said Arsham Memarzadeh, Partnerm, Lightspeed.

The extension investment will be used to continuously improve the platform and expand their services to new users, with the intention of consolidating its position as a leader in cyber asset management.