By Jane Lanhee Lee
(Reuters) -Boston-Based cyber security software startup Snyk on Wednesday said it raised $300 million in fresh funds and the company was now valued at $8.5 billion.
Synk's technology is used by developers to add security components to their new software products. Cyber security has been one of biggest areas of investment by venture capitalists since the pandemic as companies ramped up their digital footprint, including e-commerce and remote work.
The latest round co-led by Sands Capital Ventures and Tiger Global follows a funding round in March when $175 million of new capital was raised. The company was valued at $4.7 billion only six months ago.
The new funds will be used for product development and to improve its technology, the company said.
In addition to the fresh capital raised, investors paid $230 million to buy existing shares of the company. As startups fetch big valuations even before publicly listing, large funds and private equity firms are moving to buy shares of private companies from earlier shareholders or company employees.
(Reporting By Jane Lanhee Lee; Editing by Sandra Maler and Cynthia Osterman)