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Cybersecurity Automation Company Torq Secures $42 Million in Enhanced Series B Funding

ByYasmeeta Oon

Jan 26, 2024

Cybersecurity Automation Company Torq Secures $42 Million in Enhanced Series B Funding

Torq’s Journey in Revolutionizing Cybersecurity with Hyperautomation and AI

In the dynamic landscape of cybersecurity, Torq, a company self-identified as a “hyperautomation” cybersecurity startup, has recently made headlines with its remarkable progress. The company announced a significant milestone in securing $42 million in an extension of its Series B funding round. This round saw contributions from prestigious investors such as Bessemer Venture Partners, GGV Capital, Insight Partners, Greenfield Partners, and Evolution Equity Partners, elevating Torq’s total funding to an impressive $120 million.

Strategic Growth and Expansion Plans

With this influx of capital, Torq, under the leadership of co-founder and CEO Ofer Smadari, plans to significantly enhance its platform. This expansion includes integrating advanced AI capabilities, fostering international growth, and amplifying its presence in the sales channel. Smadari, a seasoned entrepreneur with a history of successful ventures in cybersecurity, emphasizes Torq’s commitment to transforming enterprise security into a catalyst for digital innovation rather than a hindrance.

The Genesis and Vision of Torq

Founded in 2020 in Portland, Oregon, by Smadari, Leonid Belkind, and Eldad Livni, Torq has its roots deeply embedded in cybersecurity excellence. Smadari, prior to Torq, co-launched Luminate, a zero-trust platform acquired by Symantec in 2019. He also held executive roles at Adallom and FireLayers. Belkind and Livni, hailing from Check Point, brought their extensive experience in network security products to Torq.

Deciphering Hyperautomation in Cybersecurity

A term that often raises curiosity is “hyperautomation.” In essence, it refers to the comprehensive automation across every process and tool within an organization, not merely isolated parts. Torq leverages this concept, allowing IT teams to develop and implement security workflows that seamlessly integrate with existing cybersecurity infrastructures.

Innovative AI Integration in Torq’s Services

Torq distinguishes itself by employing generative AI, including large language models (LLMs) akin to OpenAI’s ChatGPT. These models are adept at analyzing, understanding, and responding to queries related to Security Operations Center (SOC) playbooks. This approach is part of a broader trend in the enterprise sector, where AI and automation are gaining traction, particularly in the realm of security.

Torq’s Unique Edge in a Competitive Market

What sets Torq apart in a competitive landscape is its rapid adoption of the latest AI models, including GPT-4 and Google’s Gemini. This adoption has significantly boosted the performance of Torq’s AI services, enabling the platform to analyze a larger volume of security signals efficiently while controlling the cost of investigation.

Addressing Data Privacy and Security Concerns

With the integration of third-party AI models, data privacy and security naturally become a concern, especially for organizations in regulated industries. However, Smadari reassures that Torq’s architecture allows customers to control the accessibility of their data and choose where it’s stored, whether on Torq-operated storage or company-managed facilities. Torq upholds stringent privacy and data protection policies, ensuring client confidence.

Impressive Growth and Client Acquisition

Torq’s business model, based on annual subscriptions, has seen remarkable growth, with a 300% revenue increase and 500% client base expansion in 2023. The company boasts approximately 100 enterprise customers, including prominent names like Blackstone, Chipotle, Rivian, Lemonade, and Fiverr.

Navigating the Cybersecurity Funding Landscape

Despite a challenging funding environment for cybersecurity startups, with a noted decrease in investments, Torq’s strategic and responsible growth approach has enabled it to avoid common pitfalls of overexpansion. This responsible growth strategy aligns well with the ongoing high interest in security automation.

Future Prospects and Competitive Strategy

Looking ahead, Torq plans to maintain its competitive edge by continuing to innovate in hyperautomation and AI integration. The company has recently launched a partner program for managed detection and response providers and another program, the Torq Partner Acceleration Program, for general resellers. These initiatives are aimed at expanding Torq’s market reach and enhancing its service offerings.

Expanding the Team for Future Success

With several key executive hires made in late 2023, including a chief marketing officer and head of global channels and alliances, Torq is poised for further growth. The company aims to increase its workforce by 30% by the end of 2024, building on a 25% headcount increase from early last year. This aggressive expansion strategy underscores Torq’s commitment to staying at the forefront of the cybersecurity industry.

In Conclusion

Torq’s journey in the cybersecurity landscape is a testament to the power of innovation, strategic growth, and the foresight to embrace cutting-edge technologies. With its focus on hyperautomation and AI, Torq is not just addressing current security challenges but is also shaping the future of how enterprises approach cybersecurity. As the company continues to expand and evolve, it stands as a prominent example of how technology and visionary leadership can drive success in an increasingly digital world.

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.