Tanium Is Said to Reach $1.75 Billion Value in New Funding RoundEric Newcomer
Tanium Inc., a network-security and systems-management startup, raised $52 million from Andreessen Horowitz in a funding round aimed at helping the company expand.
The deal values Tanium, which sells security tools to half of the 10 largest U.S. banks, at $1.75 billion, according to a person with knowledge of the deal, who asked not to be named because the number isn’t being disclosed.
Tanium, which counts Cisco Systems Inc. and Hexis Cyber Solutions Inc. among its competitors, detects problems at endpoints -- security lingo for laptops, servers and other vulnerable devices where a virus might enter a corporate network. The company’s technology rapidly discovers all the machines that an organization owns and all of the software running on them, letting it find errant devices that have not been properly secured.
“What our tool does really in a nutshell is in 15 seconds, even at the largest scale enterprises, see every endpoint,” Orion Hindawi, co-founder and chief technology officer at the Emeryville, California-based company, said.
Tanium plans to add sales staff and expand international operations. The company expects to increase headcount to more than 500 by the end of 2015, after a fourfold jump in the past 12 months to 175 people.
Andreessen Horowitz funded $90 million in an earlier round, taking its total investment in Tanium to $142 million. Bloomberg LP, the parent of Bloomberg News, is an investor in the venture capital firm.
Tanium has been cash-flow positive in every quarter since 2012 and has more than $100 million in cash, said Hindawi.
David Hindawi, the company’s chief executive officer and chairman, co-founded Tanium along with his son Orion. They also co-founded BigFix Inc., a systems-management company that was acquired by International Business Machines Corp. in 2010.