Traceable AI, the API security & observability company, today announced it has raised $60 million in Series B funding. This new funding values Traceable AI at more than $450 million. This investment round was led by Institutional Venture Partners (IVP), and other investors include Tiger Global Management and existing investors Unusual Ventures and BIG Labs. Traceable AI plans to use this round of funding to accelerate its next phase of growth by further investing in its product development and research efforts, expanding its sales and marketing teams, and expanding global sales.
“API security has become a major security and compliance concern for most companies,” said Steve Harrick, general partner, IVP. “Traceable offers a fundamentally differentiated solution that provides coverage across the full DevSecOps software lifecycle — from API development and testing to runtime protection. The company is led by Jyoti Bansal and Sanjay Nagaraj, proven entrepreneurs who we have been fortunate to work with before. They listen to customer needs and know how to deliver software at scale.”
Traceable was started two years ago by AppDynamics and Harness founder Jyoti Bansal and former AppDynamics VP of Engineering Sanjay Nagaraj through a $20 million Series A in July 2020.
“Widespread use of APIs in cloud-native applications has led to a significantly larger attack surface, intensifying the challenge of protecting these APIs from malicious usage or abuse,” said Bansal. “Bad actors only need one API entry point to access an organization’s data and cause irreparable financial, reputational and service interruptions damage. Traceable AI applies the power of machine learning and distributed tracing to truly understand how an application really works in the context of the business, and therefore, be able to detect anomalies and block threats to keep customers secure and resilient against next-gen attacks.”
By leveraging the team’s expertise in distributed tracing and observability, Traceable AI is the only API security platform that discovers, manages and secures APIs for enterprise-level organizations. Their differentiated capabilities provide coverage for the most important API security use cases, including API discovery, sensitive data exfiltration, and detecting and blocking attacks such as account takeover, API abuse and API fraud.
“As we know, all businesses are run by software. Given that APIs are the core engine of any software model today, it’s imperative that we secure them to protect the business”, said John Vrionis, partner at Unusual Ventures. “We are extremely excited to be a part of the Traceable team and their continued efforts to help enterprises secure their most important software asset – APIs.”
Traceable AI provides the industry’s leading API security platform that discovers, manages, and secures all APIs against malicious attacks and provides rich analytics to perform threat hunting, so you can make the right decisions regarding your API security posture.
A wide range of companies, including Informatica, Bullish, Digital Ocean, Zolve, Houwzer and many large finance firms utilize Traceable AI’s innovative distributed tracing technology to secure their cloud-native applications.
“We want to detect and respond to breaches in the shortest time possible,” said Pathik Patel, head of cloud security at Informatica. “The most important part is to figure out how much visibility we have into our environment and how quickly we can find the root causes and remediate those items. Traceable AI deploys across any environment, whether it’s your cloud, Kubernetes, or traditional virtual machines. Knowing how our applications behave as a part of API discovery is what created the win for the Traceable AI team at Informatica.”
“Businesses are now API driven and increasingly susceptible to business logic abuse and generic vulnerabilities like Log4Shell/Spring4shell. A holistic approach is needed to protect APIs from known and unknown threats across environments by understanding their production and pre-production environments,” said Nagaraj. “Traceable AI fits into a company’s existing infrastructure quickly and without friction. We offer agentless deployment options, including out-of-band traffic mirroring, to make sure our platform fits the needs of our customers.”