CyberArk launches corporate VC fund

Cybersecurity company CyberArk (Nasdaq: CYBR) has set up a $30 million fund, CyberArk Ventures, for investment in cybersecurity startups. CyberArk Ventures has joined up with four strategic venture capital investors: Venrock, YL Ventures, Team8 Capital and Merlin Ventures.

CyberArk has a market cap of $4.3 billion. It provides cybersecurity solutions with an emphasis on identity security in an enterprise. It is in the process of changing its business model from license sales to subscription sales.

With the launch of CyberArk Ventures, three initial investments in three companies have been announced: Dig Security, which provides real-time threat detection solutions for data assets hosted in public clouds; Enso Security, which deals in application security management; and Zero Networks, which provides identity-based micro-segmentation

CyberArk founder, chairperson and CEO Udi Mokady said, “We’re seeking innovative security start-ups that are solving difficult problems for their customers. Our first three investments are the trifecta – network security, application security and data security. CyberArk Ventures is a natural evolution of our business strategy – giving CyberArk an exciting opportunity to support the next wave of cybersecurity innovators and nurture an expanded ecosystem of trail blazers.”

Besides funding, CyberArk Ventures will provide its portfolio companies support in bringing their product to market, access to CyberArk technology and CyberArk Labs research, engagement with CyberArk leadership, and networking opportunities with prospective partners and customers. CyberArk Ventures also offers nascent companies guidance and feedback to improve their product design.

At the same time, CyberArk also released it first quarter financials. Revenue was below the consensus analysts estimate, but the company also made a smaller loss than forecast. Revenue for the quarter totaled $128 million and the net loss on a non-GAAP basis was $0.30 per share. On a GAAP basis, the net loss totaled $37.8 million. Revenue from subscribers grew 110% in the quarter to $51.9 million, and ARR (annual recurring revenue) totaled $427 million.

For the second quarter, the company expects revenue of $135-141 million, and a non-GAAP loss per share of $0.25-0.37, or $10.2-15 million in total. For the year as a whole, revenue is forecast to be $583.5-598.5 million, ARR $535-541 million, and the net loss $0.60-0.92 per share.

Published by Globes, Israel business news – en.globes.co.il – on May 12, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.