In the bustling city of San Francisco, Traceable emerged as a beacon of security, co-founded by tech entrepreneur Jyoti Bansal and Sanjay Nagaraj. The genesis of Traceable was to offer a robust defense against the ever-increasing cyberattacks targeting Application Programming Interfaces (APIs).
APIs, which are crucial for the seamless interaction of various digital services, are witnessing a surge in attacks. Reports indicate that in the early months of 2024, nearly one in four organizations experienced weekly API attacks, marking a significant uptick of 20% from the previous year.
These attacks are diverse, ranging from traffic overloads intended to crash APIs to more insidious forms like authentication bypasses and data leaks.
Bansal highlighted the critical nature of API security and pointed out the general lack of awareness, the expanding attack surface due to APIs, and the reluctance to adopt dedicated API security solutions.
With the proliferation of generative AI technologies, businesses are increasingly integrating APIs, inadvertently creating vulnerabilities. A study revealed a 200% jump in API usage by companies year-over-year. Gartner’s analysis also supports this trend, forecasting that over 80% of enterprises will have engaged with generative AI APIs or applications by 2026.
Traceable’s approach to safeguarding APIs involves leveraging artificial intelligence to monitor and learn from API usage patterns, thereby identifying anomalies. Traceable’s solution, deployable on-site or via cloud, can dynamically inventory and manage APIs, recognizing even those that are undocumented or obsolete.
“To tackle modern cyber threats, Traceable has developed in-house models by refining open-source language models with attack data,” Bansal shared. “Our platform is a comprehensive toolkit for discovering, testing, protecting, and hunting threats within the API ecosystem.”
Traceable is navigating a competitive landscape in the API security sector, with numerous companies like Noname Security, 42Crunch, Vorlon, and others vying for market share. Research and Markets project this market segment could experience a compound annual growth rate of 31.5% from 2023 to 2030.
Despite the fierce competition, Traceable is carving out its niche, analyzing about 500 billion API calls monthly for approximately 50 clients and is on track to double its revenue. Currently, Traceable’s clientele is mainly enterprise-level, but there is potential for expansion into governmental collaborations.
Bansal emphasizes Traceable’s commitment to sustainability, focusing on strategic investments for maximum returns rather than mere expenditure. This philosophy is evident in Traceable’s financial health and its revenue-driven growth strategy.
Recent developments saw Traceable secure a $30 million strategic investment, valuing the company at $500 million post-money and cumulating a total funding of $110 million. Investors include Citi Ventures, IVP, Geodesic Capital, Sorenson Capital, and Unusual Ventures. Plans for these funds encompass product development, scaling the platform, and enhancing customer and partnership programs.
With around 180 employees, Traceable anticipates expanding its team to 230 by the end of 2024, channeling much of the investment into recruitment.
Bansal also revealed that despite a healthy cash reserve, the company secured additional funds due to strong investor interest and strategic alignment with backers, particularly Citi Ventures. This move is set to propel Traceable’s product and market presence to new heights before considering a more significant fundraising round.
