July 16, 2020 | By Paul Glaser, Head of Pathfinder

In this article

  • New Portfolio Companies and Follow-On Financings: StackRox and Synack

  • Market Perspective: API Management

  • Solutions: What Happens Next?

  • Events: Virtual Showcases Featuring Start-ups

  • Portfolio Company News

Solutions

This month we would like to highlight some of Pathfinder’s activities outside of venture investing. We discuss some of Pathfinder’s solution and business development activities and provide our market perspective on API Management.

We expect StackRox to be part of the Ezmeral partner ecosystem and further the HPE commitment to provide secure, industry-leading solutions.

New Portfolio Companies and Follow-On Financings

New Portfolio Company: StackRox

The StackRox Kubernetes-native container security platform enables security and DevOps teams to enforce their security and compliance policies across the entire container life cycle, from build to deploy to runtime. The platform integrates with existing DevOps and security tools, enabling teams to quickly operationalize container and Kubernetes security.

We expect StackRox to be part of the Ezmeral partner ecosystem and further the HPE commitment to provide secure, industry-leading solutions to address customer requirements to securely manage their containerized applications. Read more about StackRox

Follow-On Financing: Synack

Following our initial Series C investment, Pathfinder participated in Synack's $52m Series D to further accelerate remote security testing from the elite hacker community around the world. Synack’s crowdsourced platform combined with its proprietary automation technology form a truly unique capability in the market to secure enterprise applications.

HPE Pointnext Services partners with Synack to deliver HPE Vulnerability Analysis Services. This solution is designed to help customers understand the risk that their business assets and applications are exposed to and provide actionable mitigation suggestions. Read more

Market Perspective

Application Programming Interface Management (APIM)

APIs are the poster children of digital transformation as they proliferate in enterprise IT environments. They are integral to transformation initiatives and IT investments in mobile, Internet of Things (IoT), and big data. Akamai(1) estimated that 83% of web traffic is now API-driven.

Growing Importance of APIM

Digital transformations is top of mind for all enterprises and the API ecosystem has evolved to address these new requirements. What was once a gateway service, APIM now addresses IT organization requirements for security and platform capabilities incorporating an API’s full lifecycle — from creation, publishing, and consumption to developer enrollment (see Figure 1 below). Today, business leaders manage and secure company-wide APIs with APIM solutions that solve for security, governance, analytics, and monetization. APIM Market Evolution

APIM Investment Trends

APIM Investment Trends

The global API Management market is expected to grow at a Compound Annual Growth Rate (CAGR) of 32.9% to reach $5.1 billion in 2023. Investors are taking note of the opportunity as APIM startups saw almost $1 billion in funding over the last five years. This funding is mostly focused on companies that are platforms (multiple feature sets: security, integration, tooling) with notable investments in Postman (Postman Raises $150M, Reaching $2B Valuation) and Kong (Kong raises $43M Series C for its API platform).

APIM Market Trends

We see a trend towards integration of APIM into the DevOps toolchain given the expansion into microservices architectures (service mesh) and Integration Platform as a Service (iPaaS) platforms. Also, given the importance of cybersecurity, we see an opportunity for emergence of security capabilities in the API ecosystem. These trends are supported by incumbents with broader capabilities across security and application management invested heavily in APIM: Google's acquisition of Apigee and Salesforce acquiring MuleSoft.

Akamai State Of The Internet Security Report

Solutions

What Happens Next?

Congratulations! HPE Pathfinder invested in your company! What happens next?

Before investing, the Pathfinder investing team solicits feedback from the business to assure alignment or “fit”. Depending on fit, next steps would be to start one or more paths; enrollment in Technology Partner Program (TPP), business unit ecosystem engagement, or business unit OEM/embedded integration, etc.

Membership in the TPP is typically appropriate for most Pathfinder portfolio companies. This program provides umbrella services to help partners learn about HPE's processes and products, as well as important inclusion in general marketing and enablement.

Pathfinder works with TPP and the business unit partner teams, such as the OneView Ecosystem Partner program, to help partners define solutions, develop positioning and messaging, and create materials and training for the HPE sales force. Transaction enablement in this phase is achieved utilizing one-off methods. Critical to generating the next level of business unit engagement and partnership success is customer engagement. Joint customer opportunities and wins help align business unit strategies to more effectively support the partner solution.

Moving to a more systematic transaction method — HPE SKUs or an OEM arrangement where a partner product is included within an HPE business unit offering — is an ideal outcome for a partner. The business unit has the resources, context, and knowledge to help partners align and promote a solution with the overall HPE product portfolio.

Pathfinder is committed to providing support and guidance to help our partners develop outstanding solutions. Developing customer-aligned solutions allows both companies to build successful futures.

Events

Virtual Happy Hour With Antonio

In mid-June, the Pathfinder team hosted our quarterly — and first virtual — Happy Hour With Antonio featuring four start-up companies. Two of the four companies are focused around AI/ML (DataRobot and Drishti and both were recently recognized by Forbes as two of “America's 50 Most Promising AI Companies”. The other two companies, Kong and Unqork, focus on accelerating next generation DevOps Enablement.

HPE Discover Virtual Experience

Last month, HPE hosted its annual (and first virtual) Discover conference. In CEO Antonio Neri’s keynote, he stated, “Today we are entering the age of insight.” This new era requires everything to be connected. “The focus is to build an edge-to-cloud platform that connects, protects, analyzes, and acts on all your data and brings agility to your apps to unlock your enterprise’s full potential,” Neri said.

Pathfinder’s portfolio companies Scality, and Weka were sponsors of the Experience Showcase with a virtual booth as well as sessions and demos featuring their products.

During Scality’s session they discussed best practices to transform legacy storage into an intelligent data platform that can take advantage of technologies such as AI and ML. Scality demonstrated its RING eXtended Data Management or XDM product and the ease of configuration for on-premises and cloud storage locations and data policies.

In Weka’s booth, you could learn about their record-breaking STAC-M3 benchmark results achieved with HPE servers. The system under test was the Weka File System (WekaFS™), the world's fastest shared parallel file system.

The Weka and HPE's integrated storage solution is the optimal choice for a variety of complex data-centric workloads such as algorithmic trading and quantitative analysis workloads common in financial services. In Weka’s booth, you could learn about their record-breaking STAC-M3 benchmark results achieved with HPE servers. The system under test was the Weka File System (WekaFS™), the world's fastest shared parallel file system.

Portfolio Company News