Traceable AI Raises An Additional $60M For Deployment Of API Security Product

CEO Jyoti Bansal vows ‘robust’ expansion of channel team. ‘The market is massive for a company like ours,’ he says.

Traceable AI has raised another $60 million in venture funding as the company plans to ramp up sales of its API security product via channel partners.

The San Francisco-based Traceable AI, an API security and observability company, announced on Tuesday that its latest round of funding was led by Institutional Venture Partners (IVP), with other investors including Tiger Global Management, Unusual Ventures and BIG Labs.

The $60 million in Series B funding brings to a total of $80 million raised by Traceable since its founding in 2019. This new funding values the startup at more than $450 million.

[RELATED STORY: Security Startup Traceable Gets Funding From CISO Group]

In a press release, the company, which employs 85 people, said it plans to use the latest round of 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. “

In an interview with CRN, Jyoti Bansal, co-founder and CEO of Traceable AI, wouldn’t disclose how much of the company’s sales are currently through the channel. But he said he wants to build up a “significant sales team” to sell its security product around the world.

“We’re starting to build out a real robust channel team,” he said.

Bansal, a serial entrepreneur whose last startup was AppDynamics, didn’t disclose Traceable’s current revenue nor the firm’s long-term revenue goals. But he noted he’d like to grow the firm to 400 to 500 employees within three years.

“The market is massive for a company like ours,” he said.

Application programming interface, or API, is now huge within the software world. API is a software intermediary that allows applications to talk to each other.

But Bansal said API has also become a target of hackers around the world.

“A lot of things are happening around APIs these days and it’s become ripe for attacks,” he said.

Enter Traceable AI’s new security platform that

Traceable says is the only product on the market that “discovers, manages and secures APIs for enterprise-level organizations.”

Bansal co-founded Traceable AI along with Sanjay Nagaraj, the firm’s CTO and former vice president of engineering for AppDynamics, a software performance monitoring company acquired by Cisco Systems for $3.7 billion in 2017.