Jyoti Bansal co-founded the San Francisco-based security company Traceable in 2017, alongside former investor Sanjay Nagaraj. With Traceable, Bansal, known for co-launching the app performance management startup AppDynamics, sought to develop a platform to safeguard customers’ APIs from cyberattacks.
API attacks, which involve attempts to disrupt APIs with heavy traffic, bypass authentication methods, and expose sensitive data, are on the rise. According to cybersecurity firm Check Point, these attacks affected nearly a quarter of organizations weekly in early 2024, marking a 20% increase from the previous year (source).
Recognizing the lack of awareness around API security, Bansal emphasized the importance of addressing the growing API attack surface. Despite the resistance to adopt new API security solutions due to existing investments, businesses are increasingly leveraging APIs, particularly in the generative AI domain, exposing themselves to potential attacks.
Traceable employs AI to analyze usage data, detect abnormal API behavior, and identify potential threats in real time. By training models with labeled attack data, Traceable offers tools for API discovery, testing, protection, and threat hunting.
Image Credits: Traceable
As the API security solutions market grows increasingly competitive, with players like Noname Security, 42Crunch, Vorlon, and others, Traceable remains focused on its unique approach. Analyzing billions of API calls monthly and anticipating a revenue doubling this year, Traceable serves a primarily enterprise client base while exploring opportunities with government agencies.
Recently, Traceable secured a $30 million strategic investment from backers like Citi Ventures, IVP, and Geodesic Capital, valuing the company at $500 million post-money. This funding will support product development, scaling, and partnership initiatives, with a projected headcount increase to 230 by the end of 2024.
Bansal emphasized that Traceable prioritizes strategic investments for long-term sustainability and growth, highlighting the decision to raise funds to accelerate key initiatives before considering additional fundraising.
