Israeli application security company WhiteSource announced that it has recently raised $75 million in Series D funding as the company seeks to expand its line of products and achieve possible acquisition targets. The round was led by Pitango Growth, with participation by existing investors M12, Susquehanna Growth Equity, and 83North. The Tel-Aviv-based company has raised $121.2 million since its establishment in 2011.
WhiteSource helps application developers find vulnerabilities in code, cutting off potential issues early in the development stage. According to the company's CEO, Rami Sass, the company plans to use the funding it raised to expand its line of products and capabilities to reach beyond the open-source code it currently secures and move into finding vulnerabilities in the proprietary code. Sass estimated that companies use about 25 percent proprietary code in application development.
The Crunchbase website said that in a market with so many retail, financial service and other companies developing their own applications, there is strong competition in the race to help secure them. Boston-based Snyk closed a $300 million round last month at a $4.7 billion valuation, and publicly traded Synopsys also offers its own application security platform.
Despite such strong competition, WhiteSource's revenue has grown 800 percent in the last three years, and the company now has about 1,000 customers, according to CEO Sass. He added that the growing market could help WhiteSource be IPO-ready in as little as two to three years.