Cyber-Ark lures Goldman Sachs in $40m funding round

Investment bank exec joins security vendor's board after contributing to eight-figure growth pot

Cyber-Ark Software has a multimillion dollar growth war-chest after investment banking giant Goldman Sachs headed up a $40m funding round.

As part of the investment drive, the Massachusetts-based privileged identity management (PIM) vendor has also received more cash from long-time backer Jerusalem Venture Partners (JVP). Other major investors already on the books include Vertex Venture Capital and Cabaret-ArbaOne.

The $40m (£25m) pot includes share purchases from existing shareholders, as well as a chunk of money to fuel growth. David Campbell, vice president of Goldman Sachs' merchant banking division, will join Cyber-Ark's board.

"We were attracted to Cyber-Ark's leading technology solutions in the large and fast-growing market of securing corporate cyber assets," he said. "The company's top-class management team has a strong track record of demonstrating consistent and profitable growth."

Alon Cohen, who co-founded the vendor, is to step down from his role as chairman, to be replaced by JVP chairman Erel Margalit.

"I'm both proud and excited about this transaction that will enable several of the company's longer-standing partners, including myself, to capitalise on many years of dedication towards building this company into a prominent security leader," said Cohen.

"I strongly believe that as Cyber-Ark transitions to its next phase of growth, JVP and Goldman Sachs will be best suited to lead the company in its continued global expansion."