Information on the Target

Akto is recognized as the world's first plug-and-play API security platform, designed to address the escalating security challenges associated with the growing API economy. Co-founded by Ankita and Ankush, the platform arose from their firsthand experiences with API security issues during their tenure at CleverTap. Their understanding of the significant vulnerabilities within APIs led them to engage over 200 security engineers worldwide, confirming the necessity for an innovative solution in API management.

The core mission of Akto is to provide organizations with an efficient means to catalog their API endpoints, assess them for security vulnerabilities, and monitor them for possible data leaks. Within a short span, Akto has garnered multiple prestigious clients in India and the United States, highlighting its effectiveness in addressing critical security gaps.

Industry Overview

The API economy is burgeoning, with over 90% of developers today utilizing APIs, amounting to more than 18 million developers globally. Following a staggering 120% year-on-year growth in the creation of APIs, organizations are increasingly embracing an API-first philosophy. However, as businesses open their systems to external developers and transition towards a microservices architecture, they inadvertently increase their vulnerability to potential cyber threats.

With the increased accessibility of APIs, organizations are struggling to keep track of their exposed endpoints, leading to rising risks of security breaches. The process of API testing is also primarily manual and susceptible to errors, which often results in the deployment of vulnerable APIs laden with business logic errors that may go undetected until a significant breach occurs. These trends have culminated in a notable 300% rise in API attacks over the past three years.

Furthermore, the financial repercussions of data breaches have become staggering, with costs rising from approximately $150 million in 2020. This reality underscores the urgency for robust solutions, such as Akto, that can actively mitigate these risks and protect sensitive information from exposure.

The Rationale Behind the Deal

The strategic partnership with Akto is motivated by the pressing need for efficient API security solutions in today’s digital landscape. The significant rise in API vulnerabilities and attacks underscores the importance of proactive security measures.

By investing in Akto, we aim to support its mission to revolutionize API security, ultimately facilitating a safer environment for organizations that heavily rely on API infrastructures.

Information About the Investor

This investment is led by notable industry figures, including Renaud Deraison, co-founder of Tenable; Akshay Kothari, co-founder and COO of Notion; and Milin Desai, CEO of Sentry. These investors bring a wealth of experience and insight into the realms of technology and cybersecurity, bolstering Akto’s journey toward enhancing its platform.

The backing from these prominent leaders reflects confidence in Akto’s potential to substantially improve the API security landscape, aligning with their vision for secure digital transformations.

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In expert opinion, partnering with Akto represents a commendable investment, considering the explosive growth of API usage and the corresponding rise in security risks. Akto's innovative, plug-and-play solution addresses critical pain points associated with traditional API security measures, making it a compelling player in this market.

Furthermore, the platform’s ability to amalgamate seamlessly into existing workflows, offering near-instant deployment without compromising system performance, enhances its attractiveness to potential clients. This positions Akto as an accessible option for organizations aiming to bolster API security with minimal friction.

As API threats continue to escalate, Akto's proactive approach in identifying and mitigating vulnerabilities before they can be exploited will likely result in continued adoption and growth. The current momentum reflected by Akto’s expansion and user engagement from their free tools also bodes well for its sustained relevance in the industry.

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