Two years after its last funding round, Tanium has landed $100 million in new funding, as the security startup looks to continue to invest in its business and march towards a potential IPO. Page: 1
Two years after its last round of funding, Tanium has landed $100 million in new financing as the security startup looks to continue to invest in its business and march towards a potential IPO.
The funding, which was raised through the sale of common stock, was led by TPG Capital. It also included other existing investors and one new investor, the company said. The company has seen investments to date from Andreessen Horowitz, TPG Capital, T. Rowe Price, Franklin Templeton Investments, and Citi Ventures.
Tanium raised the funding at a company valuation of $3.75 billion, higher than the company’s $3.65 billion valuation when it raised $120 million in funding in September 2015. Tanium has raised $362 million to date.
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The funding comes on the heels of a period of tough press for Tanium, with reports last month of an extremely challenged company culture and the sudden departure of the company’s CFO Eric Brown in March. Until then, the company was seen as a hot upstart in the security market, with a peer-to-peer technology that lets organizations continuously scan all endpoints in a network to detect vulnerabilities and unmanaged devices.
CFO and COO Fazal Merchant, who announced he was joining Tanium from DreamWorks in April, said the new round of funding will be put towards purchasing shares from co-founder David Hindawi, who will put the money towards his charitable endeavors, as well as providing liquidity for other institutional and employee equity holders.
Merchant said Tanium will put the remaining funding towards general corporate purposes, including general working capital and capital for ongoing operations. He said there will likely be no funding earmarked for the company’s reseller partners.
As for Tanium’s IPO plans – as one of the tech companies most expected to go public in the coming months – Merchant said the new round of funding won’t have an impact. As the company’s new CFO, Merchant said he doesn’t want to put out any deadlines or times for an IPO, looking instead to go public if and when it makes sense for the company.
“The beauty of our business, I think… is the way it’s been built, the way it’s growing, and the way it continues to scale gives us a lot of options to scaling it as a private company and scaling it as a public company and everything in between, ” Merchant said.
Merchant said Tanium needs to “get our ducks in a row” from a strategic, financial, and operational perspective so it can proceed with an IPO, or forgo one, when it makes sense.
