Web security company WhiteHat Security raises $8M

The company is backed by Investor Growth Capital

Financial trends and news by Faith Merino
July 26, 2011
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As hackers storm the Web and overpower everything from major news network websites to credit card companies, it’s little wonder that website security is a major topic in the news these days.  It’s a little sensationalistic—which I accept responsibility for.  Hacker news just always makes for really funny stories.  But Web security is nevertheless a real concern for most businesses, for good reason.  So, naturally, as businesses scramble for security solutions, investors are taking note.  One such Web security company, WhiteHat Security, on Tuesday announced an $8 million round of funding from Investor Growth Capital (IGC), bringing the company’s total raised to $22 million.

Founded in 2001, the Santa Clara-based company provides end-to-end Web security solutions using its cloud technology platform.  Its flagship product line, WhiteHat Sentinel, manages website vulnerability for over 4,000 sites for 400 clients in industries like eCommerce, finance, and healthcare.  

To provide a comprehensive risk management solution to its clients, WhiteHat offers a four-phase risk management approach, consisting of asset identification (does your website generate revenue?  Does it store and retrieve regulated data?  Does it contain confidential data?), vulnerability management from Whitehad Sentinel, reporting and communication (bug tracking and Security Information and Event Management), and protection (open-source intrusion prevention systems integration, developer remediation, security education and training, and WAF integration and virtual patching).

And businesses are latching on like nobody’s business. WhiteHat Security is growing at more than three times the overall market rate.

“[WhiteHat Security] is poised to benefit from the growing complexity and number of Web applications, as well as the sophisticated criminal intent to steal valuable data sitting behind those websites,” said IGC VP Brian Mulvey.  “The management team is an important thought leader in this market and is educating enterprises on how to respond to this ever-evolving threat.”

The company plans to use the new funds to increase its staff by 60% and open new regional offices, including a new Threat Research Center in Houston, TX. 


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