Code security startup Snyk Ltd. has raised $75 million from Atlassian Ventures and Salesforce Ventures in an extension to a $530 million funding round it announced earlier this month.
The $530 million round valued Boston-based Snyk at $8.5 billion. The $75 million investment from the venture arms of Atlassian Corp. Plc. and Salesforce.com Inc., which the startup announced this morning, boosts its valuation to $8.6 billion.
Atlassian and Salesforce are among the numerous major tech firms that use Snyk’s namesake cybersecurity tool, which helps developers find vulnerabilities in their software. There are many other products that promise to spot vulnerable code automatically. What sets Snyk’s tool apart is that it not only determines if a snippet of code contains cybersecurity issues, but also prioritizes the problems by urgency and suggests methods of fixing them.
Over the past two years, Snyk has extended its feature set to adjacent areas. The startup’s platform can detect both software vulnerabilities and misconfigured infrastructure settings that may make a company’s cloud environment susceptible to cyberattacks. Additionally, Snyk can help developers ensure that they are using the open-source components they incorporate into their projects in accordance with those components’ licensing terms.
Snyk’s tool has proven a hit in the developer community: The startup says its software is used by millions of programmers worldwide.
Snyk’s popularity among software teams is a likely major factor behind Atlassian’s participation in the newly announced $75 million investment. Publicly traded Atlassian is a major provider of developer tools. Its BitBucket Cloud product for hosting application code already integrates with Snyk and, following the investment, the two companies plan to connect their respective offerings even more extensively.
Atlassian intends to deliver expanded integrations with Snyk across its Jira Software, Jira Service Management and Compass offerings. Jira Software is used by developers to track outstanding application issues that need to be fixed, including cybersecurity issues. Jira Service Management enables companies to deliver help desk services, while Compass is a tool that assists developers with understanding the code of the applications they’re working on.
Salesforce, the other participant in Snyk’s latest funding round, regularly backs enterprise software startups through its venture capital arm. The new investment gives Salesforce a bigger stake in an increasingly important player in the developer tooling market. The cloud giant previously participated in Snyk’s Series B funding round.
Like Atlassian, the cloud giant uses Snyk’s tool internally. Moreover, Salesforce has a fairly large presence in the developer ecosystem: The company provides tools that allow companies to build custom applications atop its cloud platforms.
“For Atlassian and Salesforce, this investment in Snyk is more than just capital,” said Snyk Chief Executive Officer Peter McKay (pictured). “Like Snyk, these two industry leaders are fiercely committed to empowering developers to embed security into the entire application.”
Snyk has raised $850 million in funding to date.