Cloudsmith Raises $23M to Reinforce Software Supply Chain Security

Cloudsmith's Ambitious Venture into Supply Chain Security

Cloudsmith, a rising star from Northern Ireland, has successfully raised $23 million in a Series B funding round aimed at fortifying software supply chain security. This comes as the urgency to address vulnerabilities within codebases escalates, with reports indicating that a staggering 81% harbor high- or critical-risk open source issues. High-profile incidents like the Log4Shell exploit highlight the dire need for more robust solutions in this area.

What is Cloudsmith's Solution?

The startup offers a cloud-native artifact management platform, which it proclaims as a modern alternative to more established systems like JFrog and Sonatype. An artifact is essentially any software package or component created or shared during the software development lifecycle. Notably, while companies code their software, they increasingly depend on third-party packages, which can be difficult to track and secure, especially if they undergo updates or become unavailable. Cloudsmith’s system serves as a private registry that ensures these binary artifacts are accessible for future builds, thus maintaining reliability.

Security Checkpoints for Open-Source Dependencies

Cloudsmith's platform provides necessary scans for vulnerabilities, licensing problems, and malware before developers incorporate these open-source packages into their projects. The significance of this functionality cannot be overstated—given that many businesses lack comprehensive oversight of the artifacts they utilize, Cloudsmith fills a critical gap by acting as a ‘security checkpoint’ for these packages. This vigilance ensures that only vetted and safe packages find their way into production, bolstering overall system integrity.

A Widening Customer Base Amid Growth

Founded in 2016 by Alan Carson and Lee Skillen, Cloudsmith aims to broaden its horizons, particularly in the U.S. market where a significant portion of its revenue is now derived. The latest funding will bolster hiring in crucial departments such as sales and customer success while enhancing research and development, particularly around AI applications that can optimize package selection for developers. This presents not just a growth opportunity for Cloudsmith, but also an essential shift in how software development teams approach security.

Reflection on Industry Trends

The recent influx of funds points to a tipping point in the software development realm, where companies are realizing the critical importance of supply chain security. With the sophistication of cyber threats evolving, embracing tools like those offered by Cloudsmith is imperative for not only ensuring compliance but also maintaining the trust of customers. As the industry progresses, expect innovative solutions that drive better practices in software package management.

Cloudsmith's proactive strategy demonstrates a commendable pivot toward not just creating a tech product, but one that addresses pressing security concerns, making it a key player to watch in the growing arena of software supply chain management.