Addition leads $200m investment in Snyk at a valuation of $2.6bn

Katharine Hidalgo
10 September 2020

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Addition has led a $200m investment in software security company Snyk at a valuation of $2.6bn.

The investment will go towards accelerating product development and expanding the company's geographical footprint.

The impact of the Covid-19 pandemic in 2020 has required many of the company's employees to work remotely, but for ongoing customers, this does not impact delivery of its services, according to the company's accounts. Snyk is also not reliant on any critical suppliers that cannot operate because of the pandemic. Despite this, the company expects a slowdown in growth rates in 2020 consistent with the global macroeconomic position; however, it expects to quickly return to growth once conditions improve.

Previous funding
Boldstart, via Boldstart Ventures III, and Canaan Partners provided $3m in seed funding to Snyk in 2016.

Boldstart and Canaan returned for a $7m series-A round for the firm in March 2018. Additional investors included Heavybit, FundFire and Peter McKay, among others.

Accel led a $22m series-B for the company in 2018, with participation from GV, Boldstart and Heavybit.

In September 2019, Accel Partners led a $70m funding round. Existing US-based investors GV and Boldstart also participated in the fundraise.

In January 2020, Stripes led a $150m funding round for Snyk, valuing it at more than $1bn. Investors including Coatue, Tiger Global, BoldStart, Trend Forward, Amity and Salesforce Ventures participated.

Company
Headquartered in London and founded in 2015, Snyk offers a product that enables developers and enterprise security to continuously find and fix vulnerable dependencies throughout the development process. It operates offices in Tel Aviv and had 150 employees as of July 2019.

It generated revenues of $8.5m in 2019, up from $2.1m in 2018. The company has been loss-making since it was incorporated, and the group incurred a loss after tax of $22m in 2019.

People
Addition – Lee Fixel (founder).