What the business is
Cycode sells an application security posture management platform that scans code and its libraries for vulnerabilities and helps fix them.
The bet
Adding Bearer's precise, developer-friendly SAST engine and AI remediation makes Cycode a complete application security posture platform.
Starting capital
Price undisclosed; Cycode had raised over $81 million and Bearer $8 million
How it started
Cycode began as one of the earlier players in software supply chain security. CEO Lior Levy said that over time the team realized there was added value to capture and that becoming a platform was the right approach, as customers were telling them.
What happened
The Cycode and Bearer teams began talking in August 2023. Co-founder Dor Atias, Cycode's VP of R&D, concluded that Bearer's technology would complete the platform; he tested its engine and found it could be integrated easily. Cycode integrated it even though the deal closed only the previous week.
How it ended up
Cycode announced the acquisition on 2024-03-05. Bearer remains a stand-alone product for now, and Cycode plans to move its customers onto the Cycode platform over time and extend Bearer's engine and AI remediation to other parts of the platform. Levy called fixing issues with AI before they reach source control secret sauce for security.
What has to be true
Customers asked Cycode to become a platform, said Levy, rather than a supply chain point product.
The missing part was a SAST tool that is fast and connects easily to Cycode's platform, per Atias.
Bearer's low false-positive rate and AI fix suggestions fit a developer-first approach.
Cycode had the capital from its earlier rounds to make the purchase.
What can be applied
A startup that began in a narrow category can fill the last gap in a platform by acquiring a small team whose engine it can integrate quickly.
Aftermath
As of 2024-03-05 Bearer is integrated with Cycode and continues as a standalone product. Cycode is looking at bringing the Bearer engine and AI remediation to other parts of the platform. Deal price and later customer results were not reported.
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