Veza, a software company specializing in identity and access management, has secured US$108 million in a funding round led by New Enterprise Associates.

This round included investments from major cloud software companies such as Atlassian, Snowflake, and Workday, valuing the startup at over US$800 million.

Veza’s technology allows administrators to monitor and manage access permissions across various corporate systems.

Founded in 2020, Veza has clients that include AMD, CrowdStrike, and Intuit.

The new capital will support the company’s expansion in the US government sector and international markets.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Corporate venture capital offers resilience in challenging funding environments

The rise of corporate venture capital (CVC) provides a stabilizing force during periods of traditional VC contraction.

Corporate investments have been steadily increasing, with the number of active CVCs tripling between 2011 and 2016, and CVC-backed deals growing from 545 in 2010 to 1,268 by 2015 1.

This trend is particularly significant now as traditional venture funding has contracted sharply, with PitchBook reporting only 7,551 VC deals in Q1 2024, down from more than 11,000 in the same quarter the previous year 2.

CVCs operate with different incentives than traditional VCs, as they prioritize strategic alignment over pure financial returns, making them less sensitive to interest rate fluctuations and market downturns that impact traditional venture firms.

This explains why software vendors like Atlassian, Snowflake, and Workday can continue investing in startups like Veza while traditional VCs are preserving cash—they’re seeking strategic benefits alongside potential financial returns.

2️⃣ Identity and access management emerges as a resilient high-growth sector

Veza’s successful fundraising reflects broader growth trends in the identity and access management (IAM) market, which is projected to expand from approximately $17-23 billion in 2025 to $65-73 billion by 2034/2035 34.

This rapid growth rate of 8.4-12.4% annually demonstrates why cybersecurity remains an investment priority even during economic uncertainty, with the cybersecurity sector outperforming the broader tech market (the First Trust Nasdaq Cybersecurity ETF is up 3% while the Nasdaq has dropped 10%).