CrowdStrike Launches $100M Falcon Fund II Investment Vehicle for Tech Innovators

CrowdStrike, the endpoint protection, cloud workload, identity and data company, announced the launch of Falcon Fund II, a $100 million investment vehicle in partnership with Accel focused on multi-level private investments in cybersecurity and relevant adjacent markets.

Five times the size of the original Falcon Fund, CrowdStrike says Falcon Fund II represents its commitment to growing the cybersecurity technology ecosystem in adjacent markets as one of the largest strategic cybersecurity risk arms.

The company says Falcon Fund II will build on the success of the original Falcon Fund, which invested in companies including Corelight, Cribl, JumpCloud and Tines in 2021. It says Falcon Fund II will continue to expand its ecosystem significant technological partnerships. , including new vendors for the CrowdStrike Store.

“Falcon Fund II exemplifies our strong commitment to private company investments that enable us to support technologies and leaders,” said George Kurtz, CEO and co-founder of CrowdStrike.

“This company goes beyond our mission to create the industry’s best suite of products that protects endpoints and workloads, identity and data in the cloud. Together with the next generation of market disruptors, we can help shape the future of cybersecurity with a common goal of protecting organizations’ critical risk areas and making the world a safer place.”

Sameer Gandhi, partner at Accel, says he had great success with the launch of the first Falcon Fund. “With Falcon Fund II, we will support the next wave of cybersecurity and technology leaders. Security is a critical ecosystem, and we look forward to the opportunities that one of the largest strategic risk arms in cybersecurity.”

CrowdStrike was one of the top stocks in 2020 after its return of over 300%. According to a PricewaterhouseCoopers report at the time, 69% of respondents expected cybersecurity spending for their organizations to increase in 2022. Gartner estimated that information security spending would rise from $155 billion in 2021 to $172 billion in 2022. In the third quarter of fiscal 2021, CrowdStrike reported total revenue of $380 million, representing 63% year-over-year growth. Management provided a forecast of $1.4 billion in total revenue for the year, which would imply 64% year-over-year growth over calendar year 2020.

With Falcon Fund II, CrowdStrike aims to:

  • Significantly increase its ability to fund the next generation of emerging suppliers.
  • Build on the success of the original Falcon Fund.
  • Form long-term alliances with companies that can benefit from CrowdStrikes’ expertise and knowledge base.
Previous How to articulate an investment portfolio?
Next BLOG: Is it time to rebalance your investment portfolio?