WhiteHat Security Receives $31 Million Strategic Growth Investment From Leading Investment Firms

  WhiteHat Security Receives $31 Million Strategic Growth Investment From
  Leading Investment Firms

  Investment from JMI Equity and Investor Growth Capital furthers WhiteHat’s
  enterprise and mid-market momentum, enabling expansion of key business and
                           global sales initiatives

Business Wire

SANTA CLARA, Calif. -- February 5, 2013

WhiteHat Security, theWeb security company, today announced it has received a
strategic growth investment from new investor JMI Equity, with additional
participation from existing investor, Investor Growth Capital (IGC). This
latest investment comes in support of WhiteHat’s robust growth and innovation
over the past decade as a true market disrupter, and will accelerate momentum
around several strategic business initiatives, including an increased focus on
the small-to medium-sized enterprise (SME) market, sales of its recently
launched Sentinel Mobile and Sentinel Source offerings, and continued
expansion internationally and with enterprise customers.

“From the start, WhiteHat has been driving Web security to the forefront of
the industry by helping organizations understand the importance of securing
their most critical assets at the application layer,” said Stephanie Fohn, CEO
of WhiteHat Security. “WhiteHat has established a leadership position in the
enterprise and we have the resources and expertise to expand our market share
globally with enterprise customers and within SME. JMI and IGC have experience
working with a significant number of successful companies in the SaaS and
security markets. We believe they will be valuable partners in our continued

With year-over-year growth in new bookings of more than 75 percent and a
customer retention rate north of 95 percent, WhiteHat secures the Web
applicationsofsome of the largest worldwide brands, encompassing more than
one billion customer accounts. Since the company launched in 2001, it has made
considerable inroads within the e-commerce, financial services, technology,
and healthcare markets with its flagship WhiteHat Sentinel product line. This
investment will enable WhiteHat to further that momentum by expanding into new
global markets as well as broaden its market share with enterprise and SME

The recent launches of Sentinel Mobile, which extends Sentinel-quality
security to applications on mobile platforms, and Sentinel Source, an
innovative approach to ensuring application security from application
inception, have also significantly contributed to WhiteHat Sentinel’s
continued technology leadership and customer adoption.

According to 451 Research, by 2014 the aggregate application security market
is projected to reach $1 billion^1, with the dynamic application security
testing (DAST) market reaching $453 million. WhiteHat is positioned to build
upon its strong market leadership position as its growth continues to outpace
the market.

“Web application vulnerabilities are rising at an alarming rate in recent
years and can have a dramatic impact on a company’s business and reputation,”
saidPeter Arrowsmith, General Partner at JMI Equity. “WhiteHat’s holistic
approach to security throughout the software development lifecycle – from
source code through completed production application – provides an advantage
that few security providers can achieve. We believe that this approach
differentiates WhiteHat as a true leader in the application security space,
and we are pleased to partner with the company as it continues to meet a
critical market need.”

About WhiteHat Security, Inc.

Founded in 2001 and headquartered in Santa Clara, California, WhiteHat
Security provides end-to-end solutions for Web security. The company’s cloud
website vulnerability management platform and leading security engineers turn
verified security intelligence into actionable insights for customers. Through
a combination of core products and strategic partnerships, WhiteHat Security
provides complete Web security at a scale and accuracy unmatched in the
industry.WhiteHat Sentinel, the company’s flagship product line, currently
manages more than 11,000 websites – including sites in the most regulated
industries as well as top e-commerce, finance and healthcare companies.

To improve your organization’s Web security, sign up for a custom, no-cost
30-day security evaluation by WhiteHat Sentinel SecurityCheck

About JMI Equity

JMI Equity is a leading growth equity firm focused on investing in growing
software, internet, business services and healthcare IT companies. Founded in
1992, JMI has invested in more than 100 businesses in its target markets and
has over $2.1 billion of committed capital under management. JMI provides
capital for growth, recapitalizations, acquisitions and buyouts.
Representative investments include DoubleClick, Eloqua, Navicure, Nimsoft,
PointClickCare and ServiceNow. For more information on JMI, visit www.jmi.com.

About Investor Growth Capital

Investor Growth Capital is a global venture capital firm backed by Investor
AB, with offices in New York, Menlo Park, Beijing, and Stockholm. Since its
formation in the mid‐1990’s, IGC has focused on partnering with exceptional,
expansion‐stage companies in the technology and healthcare industries. Today,
IGC manages an evergreen fund with more than 100 portfolio companies worldwide
and assets exceeding $1.5 billion. More at www.investorgrowthcapital.com.

^1 “The Application Security Spectrum, From Concept to Cloud,” (2011). 451


WhiteHat Security
Kylie Heintz, 408-505-1078
HORN for WhiteHat Security
Kyrksen Storer, 415-905-4012
JMI Equity
The Abernathy MacGregor Group
Chuck Dohrenwend or Allyson Vento, 212-371-5999
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