Palo Alto Networks has today announced it is forming a $20 million security venture fund. The fund will provide early stage capital investments to fuel development of innovative security applications for the Palo Alto Networks Next-Generation Security Platform (see related press release: Palo Alto Networks Ushers in the Future of Security Innovation With New Cloud-Based Application Framework).
“This new fund will build upon our reputation for developing innovative, next-generation security technologies and demonstrate the excellent momentum that we have achieved with our ecosystem of security partners. It represents an essential part of our mission to help organizations prevent cyber breaches by inspiring and accelerating a groundswell of security innovation in a model that can be easily accessed and deployed by customer organizations,” said Chad Kinzelberg, senior vice president, Business and Corporate Development, Palo Alto Networks.
The fund will be aimed at seed-, early- and growth-stage security companies with a cloud-based application approach. These companies can accelerate their routes to market for their respective technology by developing cloud-based applications built upon the Palo Alto Networks platform and the new Palo Alto Networks Application Framework, easily engaging the tens of thousands of Palo Alto Networks customer deployments.
“Palo Alto Networks new security application development model represents an important milestone for the security industry, and holds huge potential for customers, entrepreneurs and developers. We are excited to team with Palo Alto Networks to help entrepreneurs accelerate development in cloud-based applications, to serve a rapidly growing customer base that includes tens of thousands of the world’s most important customers,” said Asheem Chandna, partner, Greylock Partners.
The fund expects to collaborate with Greylock Partners and Sequoia Capital to identify and evaluate innovative security applications for potential co-investment. By providing capital, the fund will enable entrepreneurs and security vendors to focus on developing high-value functionality for customers, instead of developing the infrastructure and data stores necessary to effectively deliver their applications and establish a foothold in the market.
“Many early stage security start-ups have excellent ideas, but struggle to reach customers. By tapping into this fund and application framework, companies can get their technologies to market faster and into the hands of Palo Alto Networks customers,” said Jim Goetz, partner, Sequoia Capital.
The investments in entrepreneurial security companies are designed to accelerate the development of new security applications for the Palo Alto Networks platform. Such applications will help customer organizations more easily access, evaluate, and adopt new advanced security capabilities and activate cloud-delivered security applications from different providers as their security needs change.