TL;DR:
- Torq, a hyperautomation cybersecurity startup, raises $42 million in Series B extension, with investors including Bessemer Venture Partners, GGV Capital, and Insight Partners.
- The funding brings Torq’s total to $120 million, which will be used to expand its platform, enhance AI capabilities, and drive international growth.
- Torq allows IT teams to automate security workflows and utilize generative AI for SOC playbook analysis.
- The company’s adoption of cutting-edge AI models, such as GPT-4 and Gemini, sets it apart in the cybersecurity sector.
- Torq prioritizes data privacy, offering customers control over data access and storage.
- Impressive growth: 300% revenue increase and 500% client base growth in 2023, with clients including Blackstone, Chipotle, and Fiverr.
- Despite a decrease in cybersecurity funding, Torq’s responsible growth strategy keeps it on a successful path.
- High demand for security automation, with 80% of security leaders anticipating increased adoption in the coming year.
- Torq assists organizations in their journey towards modern, engineering-centric hyperautomation.
- Expansion plans include partner programs and a 30% increase in the workforce by the end of 2024.
Main AI News:
In the ever-evolving landscape of cybersecurity, Torq, a pioneering “hyperautomation” cybersecurity startup, has recently garnered an impressive $42 million in an extended Series B funding round. This latest injection of capital, which includes investments from prominent firms such as Bessemer Venture Partners, GGV Capital, Insight Partners, Greenfield Partners, and Evolution Equity Partners, brings Torq’s total funding to a substantial $120 million. This funding boost is set to propel Torq forward, enabling the expansion of its innovative platform, the integration of cutting-edge AI capabilities, international growth, and a significant increase in its sales channel presence.
“Making enterprise security an enabler rather than a blocker for digital innovation is the single biggest challenge facing everyone in the industry,” said Ofer Smadari, the co-founder and CEO of Torq. In an email interview with TechCrunch, he emphasized Torq’s approach to a hyperautomation platform, which seamlessly integrates with multiple facets of organizational cybersecurity, ultimately enhancing resilience.
Founded in 2020 in Portland, Oregon, Torq has rapidly gained prominence in the cybersecurity sector. Ofer Smadari, along with co-founders Leonid Belkind and Eldad Livni, brings a wealth of experience to the company. Smadari had previously co-launched Luminate, a zero-trust platform acquired by Symantec in 2019, and held executive positions at cybersecurity startups Adallom and FireLayers. Belkind and Livni, with their background at Check Point, have expertise in building and delivering network security products.
But what exactly is hyperautomation? In essence, it entails the automation of every process and tool within an organization, not just isolated components. Torq empowers IT teams to create and deploy security workflows seamlessly integrated with existing cybersecurity infrastructure. The company’s unique offering leverages generative AI, specifically large language models (LLMs) akin to OpenAI’s ChatGPT, to analyze, comprehend, and provide insights into Security Operations Center (SOC) playbooks—step-by-step guides that assist security analysts in navigating security incidents.
In an environment where AI and automation are increasingly embraced, particularly in the realm of security, Torq stands out by embracing the latest technological models. Smadari highlights, “Quick adoption of recently-announced newer generations of leading LLMs such as [OpenAI’s] GPT-4 and [Google’s] Gemini enabled Torq’s AI services to make a huge leap in terms of performance.” This innovation allows Torq to conduct comprehensive analyses of security signals while maintaining stringent cost control.
Concerns may arise about allowing third-party models to analyze sensitive security data, particularly within highly regulated industries. However, Smadari reassures that Torq grants customers the power to choose which parts of their data are accessible to the platform and where the data is stored, whether on Torq-operated storage or company-owned and managed storage. Stringent privacy and data protection policies further fortify Torq’s commitment to safeguarding sensitive information.
Torq’s impressive growth is a testament to its compelling value proposition. Operating on an annual subscription model, the company reported a staggering 300% revenue increase in 2023, accompanied by a 500% expansion in its client base. Presently, Torq boasts approximately 100 enterprise clients, including renowned brands such as Blackstone, Chipotle, Rivian, Lemonade, and Fiverr.
These achievements are particularly noteworthy considering the challenging funding landscape in cybersecurity. Crunchbase data indicates a 50% decrease in investments in cybersecurity startups compared to 2022, marking a five-year low. “From its inception, Torq has had responsible growth as one of its main culture pillars,” Smadari explained. “We’ve exercised tight control over our investments, and very close alignment of these with income sources has allowed us to avoid the traditional pitfall many other companies have fallen into—overgrowth during times of ‘hype.'”
In a climate where the demand for security automation remains high, Torq has positioned itself as a frontrunner. According to a 2023 poll by security analytics firm Devo, 80% of security leaders anticipate an increase in cybersecurity automation in the coming year. This growth is expected to bring enhanced incident analysis, accelerated threat detection and response, and more comprehensive analyses of applications and data sources.
Smadari emphasized Torq’s role in assisting C-suite-level managers in organizations in their journey towards modern, engineering-centric hyperautomation. The company provides meaningful strategies aligned with the business goals of its clients, ensuring that cybersecurity becomes an enabler rather than a hindrance.
To maintain its competitive edge against rivals such as Fortinet, Tines, and Swimlane, Torq recently introduced a partner program for managed detection and response providers. Additionally, the Torq Partner Acceleration Program targets general resellers, further expanding the company’s reach.
Looking ahead, Torq plans to continue its growth trajectory. The company made strategic executive team hires in late 2023, including a chief marketing officer and head of global channels and alliances. Torq is poised to increase its workforce by 30% by the end of 2024, building upon a 25% increase in headcount from early the previous year—an ambitious expansion reflecting Torq’s commitment to innovation and excellence in cybersecurity.
Conclusion:
Torq’s successful funding and rapid growth reflect a strong market demand for hyperautomation in cybersecurity. Its ability to integrate AI, address privacy concerns, and deliver substantial revenue growth positions Torq as a key player in the evolving landscape of cybersecurity automation. The company’s expansion and partner programs demonstrate its commitment to staying ahead in this competitive market.
