CertiK, a cybersecurity startup focused on the Web3 and blockchain ecosystem, today announced that it has raised $88 million from investors three months after closing its previous funding round.
CertiK’s Series B3 funding round was led by Insight Partners. Tiger Global, Advent International and Goldman Sachs participated along with existing backers. The investment values CertiK at $2 billion, more than double the valuation that the startup received after its previous funding round three months ago.
New York-based CertiK, incorporated as Certified Kernel Tech LLC, provides cybersecurity services that it says have helped more than 2,500 enterprise clients protect north of $300 billion in cryptocurrency assets. One of the startup’s main focus areas is cybersecurity auditing. The startup helps companies audit smart contracts, blockchain protocols and Web3 applications before deploying them to identity potential risks.
CertiK also helps companies ensure that cybersecurity requirements continue to be met after their blockchain and Web3 software is deployed. The startup can detect hacking campaigns and fraud attempts such as “rug pulls,” which is when a project is suddenly abandoned and the developer sells or removes all its liquidity. Additionally, CertiK maintains a leaderboard that provides insight into the security of different blockchains, while in parallel tracking other data points such as market capitalization.
“Given increasing trends in rug-pulls, we now see KYC [know your customer] playing an important role in Web3 security,” said CertiK founder and Chief Executive Officer Ronghui Gu (pictured). “KYC, together with Smart contract auditing and 24/7 monitoring of threats, will further strengthen our offer around end-to-end Web3 security services.”
According to CertiK, it’s estimated that more than $1 billion worth of digital assets were lost because of cyberattacks and fraud during the first quarter. In comparison, a total of $1.3 billion is estimated to have been lost during 2021. The increasing risk posed by cyberattacks is creating more demand for cybersecurity solutions in the Web3 and blockchain ecosystem.
CertiK said today it’s profitable after growing profit by a factor of 3,000 last year, but it didn’t share absolute numbers. The startup also disclosed that its revenue jumped 1,200% during 2021, again off an undisclosed base. CertiK supports 60% of all listed blockchain projects that use third-party security audit services.
CertiK will use the new funding to bring new solutions to market. In particular, the startup stated that it’s planning to expand its solutions portfolio with new “data-driven security products.”
“As we see continued growth in use cases and assets on decentralized applications the solutions being built by CertiK will be integral to securing the ecosystem, helping to accelerate innovation and adoption of these novel technologies,” said Goldman Sachs Managing Director Oli Harris.