Total amount raised
$115 Million
Latest funding date
5/1/2022
Location
Tailscale has successfully raised funding over four rounds, with the latest being a Series C round. The company is backed by 12 investors, including notable names like CRV, Heavybit, and Accel.
Keep reading to explore the intricacies of Tailscale's fundraising journey and the investors backing this innovative platform.
What Is Tailscale?
Tailscale is a software company based in Toronto, Ontario, Canada, specializing in zero-configuration virtual private networks (VPNs) for secure connectivity. The company operates in the industries of Cyber Security, Information Technology, Infrastructure, and Network Security.
With an employee count ranging from 101 to 250, Tailscale provides a Zero Trust identity-based connectivity platform that replaces legacy VPNs, SASE, and PAM. The platform is designed to connect remote teams, multi-cloud environments, CI/CD pipelines, Edge & IoT devices, and AI workloads.
How Much Funding Has Tailscale Raised?
- Seed Round
- Amount Raised: $3,000,000
- Date: April 2020
- Lead Investors: Heavybit
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To secure and simplify remote network access with a new mesh VPN built using WireGuard and Google’s BeyondCorp approach.
- Series A
- Amount Raised: $12,000,000
- Date: November 2020
- Lead Investors: Accel
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To build distributed networks for distributed teams.
- Series B
- Amount Raised: $100,000,000
- Date: May 2022
- Lead Investors: CRV, Insight Partners
- Valuation at Round: $1 billion
- Motivation Behind the Round: To hire top engineering talent, expand product-led growth, and scale go-to-market and strategic partner initiatives.
- Series C
- Amount Raised: $230,000,000 CAD (approx. $180,000,000 USD)
- Date: April 2025
- Lead Investors: Accel
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further scale operations, enhance technology, and enter new markets.
Total Amount Raised: $295,000,000 USD
Current Valuation: $1 billion
Key Investors
- Accel
- Details: Accel is a venture capital firm that invests in early and growth-stage technology companies. They have offices in Palo Alto, California, and London.
- Investment Focus Areas: Consumer, enterprise, financial technology
- Notable Investments: Facebook, Slack, Dropbox
- CRV (Charles River Ventures)
- Details: CRV is a venture capital firm based in San Francisco and Boston, investing in early-stage technology companies for over 40 years.
- Investment Focus Areas: Enterprise software, consumer technology, bioengineering
- Notable Investments: Twitter, DoorDash, Zendesk
- Insight Partners
- Details: Insight Partners is a global private equity and venture capital firm based in New York City, focusing on growth-stage technology and software companies.
- Investment Focus Areas: Software, internet, data services
- Notable Investments: Shopify, Twitter, Qualtrics
- Heavybit
- Details: Heavybit is a venture capital firm and accelerator based in San Francisco, focusing on developer and enterprise software companies.
- Investment Focus Areas: Developer tools, infrastructure, enterprise software
- Notable Investments: Netlify, Snyk, LaunchDarkly
- Uncork Capital
- Details: Uncork Capital is a seed-stage venture capital firm based in San Francisco, focusing on early-stage technology startups.
- Investment Focus Areas: Consumer, enterprise technology
- Notable Investments: Eventbrite, Postmates, SendGrid
What's Next for Tailscale?
Tailscale stands at the cusp of significant opportunities, driven by the increasing demand for secure remote access solutions. The company is poised to capitalize on the growing market for zero-trust VPNs, with a projected global VPN market size reaching $107.6 billion by 2027. By integrating with popular identity services and enhancing product-led growth, Tailscale can expand its user base among developers and enterprises alike.
Future fundraising opportunities appear promising, given Tailscale's rapid growth and substantial financial backing. The company may attract further investments to scale operations, enhance product features, and form strategic partnerships. However, challenges such as competition from established VPN providers and maintaining product quality amid rapid growth could pose hurdles. Navigating these challenges will be crucial for Tailscale's continued success and market expansion.
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