Tech Crunch reported this morning the KnowBe4 has announced a massive $300 million investment led by private equity firm KKR, based on a $1 billion valuation. Existing investors Elephant and TenEleven Ventures also participated. The massive input of cash comes on top of $50 million in March, also led by KKR - they really like this company.
Stephen Shanley, KKR Director has said that his company sees a lot of potential for KnowBe4as a market leader in the Security Awareness Training area. Shanley told TechCrunch “The business is delivering a best-in-class product, over $100 million of recurring revenue, near triple digit growth that is accelerating, and profitability — a rare combination of qualities we see in businesses at this stage. We see a huge opportunity for the business in both its current markets and in its international roll out strategy,”
What companies like KnowBe4 do is allow a company’s security staff to test employees. These harmless attempts at phishing are designed to see how staff react and if they report the attempt. Ideally businesses want to see reports but staff often learn a valuable lesson when they fall for it.
KnowBe4 founder and CEO Stu Sjouwerman said in a statement “Threats like phishing, ransomware and other forms of social engineering continue to plague organizations of all sizes, meaning the market for our security awareness training is growing at a rapid pace,”
KKR’s Shanley said – “As demand for cybersecurity products continues to increase we believe KnowBe4 is serving an important market need. A big part of what we’ll be able to help KnowBe4 do is expand internationally and help them evolve in the next stage of their growth.”Back to News