Total amount raised
$170.7 Million
Latest funding date
4/1/2024
Location
Zscaler has successfully raised funds through five distinct funding rounds, with notable investors including Employee Stock Option Fund and EquityZen. The company has also engaged in a Post-IPO Debt round, further solidifying its financial foundation.
Keep reading to explore the intricacies of Zscaler's fundraising journey and the investors backing this innovative platform.
What Is Zscaler?
Zscaler, headquartered in San Jose, California, is a global leader in cloud-based information security. The company specializes in Cloud Security, Cyber Security, Enterprise Software, and Security, with a significant focus on Zero Trust architecture. It employs between 5001 and 10000 people.
Founded to enable secure digital transformation for mobile and cloud, Zscaler has grown to secure over 500 billion transactions daily. The company's platform, the Zero Trust Exchange, ensures secure communication across branches, clouds, and data centers, making it a trusted partner for 40% of Global 2000 companies.
How Much Funding Has Zscaler Raised?
- Series A
- Amount Raised: USD 38,000,000
- Date: August 2012
- Lead Investors: Lightspeed Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To secure initial capital for product development and market entry.
- Series B
- Amount Raised: USD 110,000,000
- Date: August 2015
- Lead Investors: TPG Growth
- Valuation at Round: Over USD 1 billion
- Motivation Behind the Round: To accelerate technology investment, grow the customer base, and scale the business.
- Secondary Market
- Date: November 2017
- Investor Count: 3
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
- Post-IPO Equity
- Amount Raised: USD 22,695,169
- Date: April 2024
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fund further expansion and innovation in cloud security solutions.
- Post-IPO Debt
- Amount Raised: USD 1,500,000,000
- Date: July 2025
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen financial stability and support long-term strategic initiatives.
Total Amount Raised: USD 1,670,695,169. Current Valuation: Not publicly disclosed.
Key Investors
- TPG Growth
- Details: TPG Growth is a global private equity firm that focuses on growth capital investments. It is part of TPG, a leading global alternative asset firm.
- Investment Focus Areas: Technology, healthcare, consumer products, business services
- Notable Investments: Airbnb, Uber, Spotify
- Lightspeed Venture Partners
- Details: Lightspeed Venture Partners is a venture capital firm that invests in early and growth-stage companies. The firm has a strong presence in the technology sector.
- Investment Focus Areas: Enterprise technology, consumer technology, cloud computing
- Notable Investments: Snapchat, Nest, AppDynamics
- EMC
- Details: EMC is a technology company known for its data storage solutions. It was acquired by Dell Technologies.
- Investment Focus Areas: Technology, data storage, cloud computing
- Notable Investments: VMware, Pivotal, RSA Security
- Employee Stock Option Fund
- Details: Employee Stock Option Fund provides liquidity to employees of private companies by purchasing their stock options. It helps employees realize the value of their equity.
- Investment Focus Areas: Private companies, employee stock options, liquidity solutions
- Notable Investments: Not publicly disclosed
- EquityZen
- Details: EquityZen is a marketplace for pre-IPO equity. It connects shareholders of private companies with investors seeking to buy shares.
- Investment Focus Areas: Pre-IPO companies, secondary market, private equity
- Notable Investments: Not publicly disclosed
What's Next for Zscaler?
As Zscaler looks to the future, the company is poised to capitalize on the growing demand for cloud-based security solutions. With a strong global presence and a client base that includes major corporations, the opportunities for expansion are vast. The company's strategy of forming strategic partnerships, rather than acquisitions, positions it well to leverage new technologies and market trends.
Future fundraising opportunities are likely as Zscaler continues to scale its operations and enhance its technology. The company's openness to potential acquisitions suggests that additional capital may be sought to support these endeavors. However, Zscaler will need to navigate challenges such as intense competition and the rapidly evolving nature of cyber threats to maintain its market leadership.
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