Sysdig, container security startup, raises $68.5M Series D funding

Sysdiag, Container monitoring, and security startup has raised USD 68.5M in series D round of funding. This brings total funding to USD 121.5M. Insight Venture Partners led this funding round along with Bain Capital Ventures, and Accel.

Sysdiag is a San Francisco based startup and Founded in 2013. It launched its Secure product in October 2017. Sysdiag built its security product based on Falco open source container security project. It includes support for Kubernetes, Docker, Amazon Web Services (AWS), Elastic Compute Cloud (EC2), and Mesos. Sysdiag platform help developers handle vulnerability management, more than 200 compliance checks, and security analytics in containers and microservices used in enterprises.

Sysdiag CEO Suresh Vasudevan said in the blog post, "We have three investment priorities as we look to leverage our series D funding round. First, to invest aggressively in our technology platform as we look to extend our leadership in container security and monitoring. Second, to invest aggressively in our sales, marketing, and customer success initiatives as we look to build a thriving community of happy customers and users. Third, to continue expanding our team of talented employees that are passionate about enabling our customers to run reliable and secure containers and microservices."

He further added, "The strong value proposition of our technology has translated into strong momentum and rapid growth over the last year. Sysdig’s open source forensics technology, sysdig, and our open source run-time security project, Sysdig Falco, have a community of millions of users. Our commercial customer base has grown to hundreds of enterprises, including many of the world’s largest financial institutions, media companies, cable companies, technology companies, and government organizations. "

Key customers facing issues highlighted with container deployments are,

• How do we gain visibility into immutable containers when we can no longer have agents within containers? How do we detect security breaches within containers?
• How do we programmatically ensure that images running across thousands of containers are always free of vulnerabilities? When we do have a vulnerability, can we quickly assess which of hundreds of services may be impacted?
• In a complex mesh of thousands of containers and hundreds of services, how do we enact rules around which containers should be allowed to communicate with which other containers?
• How do we prevent a security breach within one container from spreading to other containers in a cluster?
• Given the ephemeral nature of containers, how do we detect when a container may have had a lifespan of only seconds within which it might have exfiltrated data? If a breach has already occurred, how do we go back to conduct forensics on a container that no longer exists?

The blog post notes that customers are monitoring millions of containers using Sysdia technology. Customers are ensuring PCI compliance with Sysdiag technology with transactions spanning to hundreds of millions of dollars. For example, a large government agency with a crime prevention mandate leverages our run-time detection capabilities to protect applications dispersed across the nation.