Tailscale Secures $160 Million in Series C Funding to Accelerate Growth
In an impressive financial move, Canada-based security startup Tailscale has successfully raised approximately $160 million (C$230 million) in its latest Series C funding round, which was spearheaded by the venture capital firm Accel. This significant boost in capital marks a pivotal moment for Tailscale, a company that has garnered attention for its innovative approach to secure remote access solutions.
This funding round also saw the continued involvement of several key returning investors, including CRV, Insight Partners, Heavybit, and Uncork Capital. Additionally, notable angel investors joined the cause, with George Kurtz, CEO of CrowdStrike, and Anthony Casalena, the CEO of Squarespace, making their mark as new backers.
In a detailed blog post announcing the funding, Tailscale expressed their motivation behind this latest fundraising effort, stating, âEven though we already had a long runway, we raised this Series C because we realised the world had started raining opportunities. We want to go faster where it matters.â This suggests a strategic intent to capitalize on emerging market possibilities and expand their offerings rapidly.
The recent funding round has elevated Tailscaleâs valuation to an impressive $1.5 billion, as reported by Bloomberg. This valuation follows a robust track record in the tech sector, underlined by the companyâs mission to simplify the deployment of virtual private networks (VPNs) for developers and corporate IT teams alike.
Tailscale has already built a substantial client base, reportedly serving over 10,000 corporate customers, which includes notable organizations like Instacart and Duolingo. This wide-ranging adoption signifies the companyâs effectiveness in providing secure and reliable remote access solutions tailored to various business needs.
In May 2022, Tailscale had previously raised $100 million in a Series B round led by CRV and Insight Partners, which not only illustrated strong investor confidence but also lifted the companyâs valuation to $1 billion. To date, Tailscale has successfully amassed a total funding of $275 million, as highlighted in Bloombergâs report.
Despite the backdrop of increasing geopolitical uncertainty affecting North American trade, Tailscale co-founder and CEO Avery Pennarun conveyed optimism, asserting that such tensions are unlikely to disrupt the companyâs operational flow. He emphasized how Tailscaleâs product can facilitate secure connections across a diverse array of internet-connected devices, including laptops, drones, and even autonomous vehicles, thereby enabling seamless and secure communication on a global scale.
Accel partner Amit Kumar also weighed in on the investment decision, citing strong developer engagement as a major factor influencing the firmâs renewed financial commitment to Tailscale. This highlights the startupâs dynamic position within the tech ecosystem, which continues to attract both investment and interest.
While acknowledging that there has been external interest in acquiring Tailscale, Pennarun stated that the company is not actively pursuing a sale at this time, indicating a focus on growth and innovation rather than short-term exit strategies.
This latest funding milestone not only strengthens Tailscaleâs financial position but also sets the stage for future advancements and opportunities in the realm of secure remote access solutions.
