[Funding alert] Traceable AI raises $60M in Series B round

API security startup Traceable AI raised $60 million in Series B funding, at a valuation of more than $450 million. The round was led by Institutional Venture Partners (IVP), with participation from Tiger Global Management and existing investors Unusual Ventures and BIG Labs.

Traceable AI plans to use this 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. 

Steve Harrick, General Partner, IVP, said, “API security has become a major security and compliance concern for most companies. 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 proven entrepreneurs who we have been fortunate to work with before. They listen to customer needs and know how to deliver software at scale.”

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Traceable was launched in 2020 by AppDynamics and Harness founder Jyoti Bansal, and former AppDynamics' VP of Engineering Sanjay Nagaraj.

Jyoti Bansal, Co-founder and CEO of Traceable AI, said, "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.”

The startup's API security platform discovers, manages, and secures APIs against malicious attacks and provides rich analytics to perform threat hunting, so businesses can make the right decisions regarding API security posture.

“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's clients include Informatica, Bullish, Digital Ocean, Zolve, and Houwzer. Many large finance firms also utilise the startup'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 - Informatica, "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.”