Amid Increased Cyberattacks and Regulatory Pressure, Enterprise Demand for Opal Security’s Identity Security Solution Rapidly Grows

December 07, 2023 03:00 AM Pacific Standard Time

SAN FRANCISCO & NEW YORK–(BUSINESS WIRE)–Opal Security, the next-generation identity security and access management company, today announced its $22 million Series B funding, led by Battery Ventures, with participation from existing investors Greylock and Box Group. The round brings Opal Security’s total funding to date to $32 million.

“The Opal Security team has homed in on a key market opportunity: bolstering the security of companies’ internal systems through identity and access management, while not compromising the ability of employees to do their jobs.”

Since Opal Security’s 2022 Series A financing, the company has realized a 4x increase in annual recurring revenue for its suite of identity access management solutions, driven by intense enterprise demand for identity-security products. With this new round of funding, Opal Security will expand its global team, scale enterprise customer support and ramp up new product development, including a new suite of visualization and AI tools to remediate identity risk.

The new wave of cybersecurity regulation, including a new U.S. Securities and Exchange Commission (SEC) rule requiring companies to quickly and comprehensively disclose cybersecurity incidents, is behind this spike in enterprise demand. Opal Security customers are eager to use the company’s platform to reduce the lack of visibility and enforce least privilege across their organizations to reduce the likelihood of ‘compromised credential’ incidents. These incidents, which surface when bad actors gain access to employees’ valid credentials, like passwords and logins, are the leading cause of successful cyber intrusions according to the U.S. Cybersecurity & Infrastructure Security Agency (CISA). 75% of compromised credential incidents result from system misconfigurations or mismanagement of access, per Gartner.

Scaling organizations and large enterprises demands flexible, cloud-native identity security that can manage identities and access across fragmented, interconnected systems and hybrid environments. Opal Security’s next-generation platform, currently used by customers including Databricks, Figma, Scale AI and larger enterprises, enables users to securely manage access to the tools and resources they need to do their jobs quickly, easily and, importantly, securely. The Opal Security platform simplifies the management of human and non-human identities by providing a clean, API-driven approach to unifying and acting on identity and authorization data.

“There are more cybersecurity regulations coming, and with them, increased exposure of what’s really happening inside organizations when it comes to access and authorization,” said Umaimah Khan, CEO and co-founder of Opal Security. “In large organizations, the complexity of security and IT challenges often leads to decision paralysis as teams grapple with where to begin addressing massive organizational and technical debt. Despite identity and access processes spanning multiple departments, accountability for outcomes and risk falls on security and infrastructure teams. The need for a unified system is becoming more important to guard against malicious attacks and reduce the blast radius of damage caused.”

“Identity and authorization are the cornerstone of security infrastructure. One of the primary hurdles faced by organizations is establishing comprehensive and uniform IAM practices,” said Caleb Sima, Chair of CSA AI Security Alliance. “Opal Security has developed a platform that integrates various solutions, significantly advancing progress in this domain. I am enthusiastic about contributing to their efforts in shaping the next generation of identity and access.”

“The cybersecurity landscape is continually evolving, as attack surface areas expand and attackers become more sophisticated. Market dynamics are also forcing companies to become as efficient as possible,” said Dharmesh Thakker, general partner at Battery Ventures, the global, technology-focused investment firm leading Opal Security’s Series B financing. “The Opal Security team has homed in on a key market opportunity: bolstering the security of companies’ internal systems through identity and access management, while not compromising the ability of employees to do their jobs.”

Opal Security is currently hiring San Francisco, New York, and remote-based employees across all departments.

About Opal Security

Opal Security, the unified identity platform for modern enterprises, aggregates identity and access data to provide customers with the visibility and defense-in-depth infrastructure they need for their mission-critical systems. Enterprises can discover anomalous identity risks and remediate them in minutes. Customers including Databricks, Figma and Scale AI trust Opal Security to govern and adapt sensitive access. Based in New York City and San Francisco, Opal Security is backed by Greylock, Battery Ventures, Box Group, SVCI and other prominent industry leaders. For more information, please visit opal.dev and follow us on Twitter @opal_sec and LinkedIn.

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