Zero Networks, a cybersecurity firm specializing in microsegmentation solutions, has raised US$55 million in its series C funding round led by Highland Europe.

Exisiting investors F2 Venture Capital, PICO Venture Partners, Venrock, and US Venture Partners also participated.

This brings the company’s total capital raised to over U$100 million.

Since its series B funding, Zero Networks reports a 300% increase in revenue, tripled its customer base, and doubled its workforce.

The company credits this growth to rising enterprise demand for tools that prevent lateral movement, commonly used in ransomware and supply chain attacks.

The new funds will be used to expand sales, marketing, research, and development teams.

🔗 Source: Zero Network

🧠 Food for thought

1️⃣ Microsegmentation’s breakthrough after years of unfulfilled promise

Microsegmentation has been recognized as the gold standard for preventing lateral movement attacks since the early 2010s, but widespread adoption has been hindered by notorious implementation challenges.

Traditional approaches have suffered high failure rates due to complexity, slow implementation, and operational disruptions that made organizations reluctant to pursue these projects 1.

This explains why Forrester has observed a significant recent uptick in inquiries about microsegmentation and Zero Trust segmentation, indicating growing urgency among organizations to solve this longstanding security problem 2.

The pharmaceutical industry case study of Andelyn Biosciences demonstrates this pattern. They spent two frustrating years with a traditional network access control solution before pivoting to a more modern approach that delivered results without disruption 1.

Zero Networks’ 300% revenue growth suggests their agentless, automated approach is successfully addressing these implementation barriers that have challenged the industry for over a decade.

2️⃣ Cybersecurity market favors product-based solutions amid economic recovery

The cybersecurity funding landscape is showing signs of recovery in 2024 with 621 funding rounds totaling $14 billion, but investment is highly concentrated in product-based companies that received $12.3 billion compared to just $1.7 billion for service-based firms 3.