Cybersecurity company Snyk Ltd. on Tuesday announced a $25 million investment from enterprise software maker ServiceNow Inc.
The Boston-based startup also announced an integration with ServiceNow that aims to provide cybersecurity and information technology managers with a view of potential security vulnerabilities from open source code.
The funding comes as cybersecurity startups have seen a late-stage funding crunch. Snyk, which aims to facilitate security for software developers in their cloud-based applications, last month announced a $196.5 million Series G investment led by the Qatar Investment Authority at a 7.4 valuation. billion, down about 12% from its previous funding in September 2021.
As the slowdown in cybersecurity funding follows a broader slowdown in public markets, Chris Bedi, chief information officer of ServiceNow, said the software maker sees “significant market opportunity as companies continue to rethink their security practices”.
As part of the investment, Snyk will integrate its open source risk management tool and vulnerability database, which compiles data and patches for open source and container vulnerabilities, with ServiceNow’s software platform, said Snyk chief executive Peter McKay.
ServiceNow, which develops software that helps enterprises manage and automate their line-of-business applications, has offered security products since 2015 but was looking for a solution to address growing cybersecurity vulnerabilities in open-source code, which developers routinely reuse to write their own apps, Mr. Bedi told me.
Such risks in open source code were thrown into the spotlight in 2021, when a flaw in the widely used Log4j framework left businesses and government organizations scrambling to deal with a glaring cybersecurity threat to networks. global computing.
“Security is a team issue that requires developers, security and IT professionals to work together,” Bedi said. With the ability to develop and release software a competitive differentiator for businesses, he added, there is increased pressure on “security practices to evolve”.
Cybersecurity risks in software development also emerged during the pandemic, when developers could work remotely in compromised environments, said Mark Horvath, a cybersecurity analyst at research and advisory firm Gartner. Inc.
Over the past five years, CISOs and CIOs have become more receptive to letting software developers choose which security tools they prefer to use, especially in cloud computing environments that may be exposed to an array of cyberattacks. more complex than on-premises systems, Mr. Horvath said.
Other application security companies, including Veracode Inc., Contrast Security Inc., and Checkmarx Ltd., similarly target software developers, betting those engineers will have more say in tools than technology executives. choose to buy, said Jim Mercer, developer security analyst. at International Data Corp.
Snyk has also brokered deals with other tech companies like enterprise productivity software maker Atlassian. Corp.
and Salesforce Inc.,
who have already invested in the startup, McKay said.
By offering its database of vulnerabilities in connection with the platforms of these companies, Snyk advocated helping them break into the app security market, Mercer said. Even when IT and cybersecurity budgets are more constrained, companies will continue to invest in application security, he added.
The integration between ServiceNow and Snyk is also further evidence of what some analysts call the “platform” approach to IT and security, as CIOs and security managers seek a single source for their IT data. and security. “Sellers are starting to talk to each other more often and to be able to exchange data,” Horvath said.
Snyk will use capital from ServiceNow to help the company achieve its goal of achieving cash flow breakeven by 2024, McKay said. The eight-year-old startup cut its workforce by 14% last year and now has more than 1,000 employees, according to McKay.
Write to Belle Lin at email@example.com
Copyright ©2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8