In a significant milestone for the cybersecurity sector, Kiteworks, a company specializing in tools to secure email communications and file sharing for sensitive data, has secured $456 million in funding from Insight Partners and Sixth Street Growth, valuating the company at over $1 billion.
Formerly known as Accellion, Kiteworks had faced a major data breach in 2021 related to legacy services, impacting hundreds of organizations. However, the company has rebranded successfully, becoming profitable in the past two years and serving millions of users across thousands of enterprises and government agencies.
This funding round highlights the consistent challenges faced by organizations dealing with IT breaches, leading successful cybersecurity companies like Kiteworks to take on a role as consolidators in the industry. Kiteworks plans to leverage the investment to drive growth through acquisitions, hiring, research, and business development.
While the cybersecurity landscape is teeming with startups addressing evolving threats, Kiteworks stands out with over two decades of experience, focusing on securing sensitive data across various platforms. The company’s unique approach includes a private content network (PCN) that ensures compliance with data protection regulations, positioning Kiteworks as a leading security platform authorized by FedRAMP in the U.S.
Jonathan Yaron, the CEO and chairman of Kiteworks, expressed excitement about the future prospects, aiming to innovate further to cater to evolving customer needs. With the backing of Insight Partners and Sixth Street Growth, Kiteworks is well-positioned to capitalize on the growing demand for data security solutions.
Insight Partners and Sixth Street Growth’s investment reflects confidence in Kiteworks’ growth potential, as the company plans to expand both organically and through acquisitions. With a strong market presence and innovative solutions, Kiteworks is poised to capitalize on the increasing importance of data security in the digital landscape.
