AI-Powered Cybersecurity: Torq Raises $70 Million in Series C Funding

Torq, a cybersecurity firm specializing in AI-driven automation for security responses, has secured $70 million in Series C funding. The investment, led by Evolution Equity Partners, brings Torq's total raised to $192 million.

• This funding round comes on the heels of a successful period for Torq, with its annual recurring revenue (ARR) surpassing $24 million and projected to reach $100 million by fiscal year 2026.
• The company has over 150 direct enterprise customers and partners serving nearly 900 enterprises worldwide.

The Rise of AI in Cybersecurity

The cybersecurity sector is experiencing a surge in investment, particularly in AI-driven solutions. Torq's success reflects the growing demand for automated responses to cyberattacks, as organizations seek to mitigate threats more effectively.

• A 2023 survey by Devo found that 80% of security leaders expect increased investments in security automation technology this year.
• The global security automation market is projected to reach $26.6 billion by 2032, indicating a significant growth trajectory.

Torq's AI-Driven Approach

Torq leverages AI, specifically large language models similar to ChatGPT, to automate security workflows and address repetitive tasks. This approach aims to free up cybersecurity analysts to focus on more complex investigations and threat responses.

• Torq's platform integrates with existing infrastructure, allowing IT teams to create automated workflows for incident response.
• The company's AI-powered capabilities help answer questions about security playbooks, providing guidance to analysts.
• By automating tasks, Torq aims to enhance security efficiency and reduce the time it takes to respond to threats.

Addressing AI Challenges in Cybersecurity

While AI offers significant potential in cybersecurity, it's crucial to address the challenges associated with its use. Torq acknowledges that its AI-powered automation is not perfect and is actively working to mitigate potential risks.

• The company is collaborating with other organizations to build risk and attack surface models, ensuring the accuracy and reliability of its AI systems.
• Torq is also implementing various testing techniques to identify and address potential biases or errors in its AI algorithms.

Torq's Growth Plans

Torq plans to utilize the Series C funding to accelerate product research and development, as well as expand its customer base.

• The company will focus on strengthening its go-to-market teams in the U.S., Europe, and Asia.
• Torq's growth strategy is aligned with the overall growth of the cybersecurity industry, which continues to attract substantial investment.

Venture Capital's Focus on Cybersecurity

The cybersecurity sector continues to be a magnet for venture capital funding, with Q2 2024 witnessing $4.4 billion invested in cybersecurity firms.

• This represents a significant increase from the previous year, underscoring the growing confidence in the cybersecurity market.
• The influx of venture capital supports the development of innovative cybersecurity solutions, including those leveraging AI.

Torq's Leadership and Background

Torq was founded in 2020 by Ofer Smadari, Leonid Belkind, and Eldad Livni, who have extensive experience in the cybersecurity industry.

• Smadari previously founded Luminate, a zero-trust security platform acquired by Symantec.
• Belkind and Livni were at Check Point, where they designed network cybersecurity tools.
• Their combined expertise has contributed to the development of Torq's AI-driven security platform.