Veracode raises $40 million to stop the next Heartbleed, prep for IPO

Veracode chief executive Bob Brennan (courtesy of the company).
Veracode chief executive Bob Brennan (courtesy of the company).

Burlington’s Veracode on Thursday announced $40 million in new funding to fuel the expansion of its cybersecurity software for large companies.

In an interview, chief executive Bob Brennan said the funding is expected to be the last before the firm pursues an initial public offering of stock, which could be as soon as within the next year. The company has seen its growth pick up amid an increasing frequency of breaches at major companies, he said.

The new funding was led by Boston-based Wellington Management and included other previous investors, among them .406 Ventures and Atlas Venture. Veracode has now raised $112 million since its launch in 2006.

The firm’s software-as-a-service aims to remove some of the hardest roadblocks that companies face when trying to innovate—namely, giving security clearance to new software they’d like to bring on board.

Veracode says its approach ensures that cyber attacks don’t take place through the software applications used by companies, a la Heartbleed. (Specifically, Veracode does so by scanning the applications for vulnerabilities without the need for highly-sensitive source code.)

Revenue last year surpassed $45 million, and customers include three of the largest US banks, whose names haven’t been disclosed. The firm has seen a spike in the number of million-dollar contracts signed with blue-chip companies, according to a news release. Top competitors include IBM and HP.

The firm employs about 350, including 230 in Burlington.

The new round for Veracode is among the largest for a Boston-area tech company so far in 2014:

Read more: What is Boston’s strong suit in tech? Ask Veracode

Kyle Alspach has worked in journalism in Massachusetts since 2005 and was one of the original staff writers at BetaBoston.
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