Effective cybersecurity strategies rely heavily on robust and intelligent security operations teams, and a startup that provides tools to support these teams has just secured significant funding. Pentera, a company that offers a system for simulating network attacks to test software and human responses, has announced $60 million in funding, valuing the Boston-based, Tel Aviv-founded startup at over $1 billion in a Series D round.

According to CEO Amitai Ratzon, the funding will be utilized for mergers and acquisitions, as well as continued product development.

Pentera’s name is derived from “pen testing,” a term that refers to penetration testing programs designed to help security teams prepare for potential attack techniques. The company’s product, officially known as “automated security validation,” offers an advanced version of this concept.

As Ratzon explained, “We provide enterprises and governments with a technology that can launch a large-scale attack against themselves with the click of a button, and then revert to normal with another click. The best part is that it’s designed to be completely safe.”

Unlike traditional security drills, Pentera’s simulated attacks are carried out without alerting the rest of the organization, much like many real-world security breaches.

This funding announcement follows a period of significant growth for Pentera, with customer numbers increasing by 200% to 1,100 organizations and annual recurring revenue (ARR) growing by 300% over the last four years, highlighting the strong demand for its tools in the market.

The funding round is led by Evolution Equity Partners, with participation from Farallon Capital. Prior to this, Pentera had raised $190 million in a combination of primary and secondary equity, according to PitchBook. The company’s other investors include Insight, K1, and Blackstone.

Pentera’s success coincides with a significant trend of automation in the cybersecurity sector.

The cybersecurity landscape has been dramatically impacted by the emergence of artificial intelligence (AI), which is being utilized by both malicious hackers to breach systems and by various tools to identify and prevent attacks.

Pentera’s platform takes into account the role of AI in cybersecurity. When launching simulated attacks, it targets specific vulnerabilities and identifies potential areas of exploitation within an organization’s network.

Ratzon noted that this process can generate up to 10,000 alerts.

While an excessive number of alerts is a common issue with many security tools, Pentera’s system automatically narrows down the alerts to six or eight root causes or vulnerabilities, provides recommendations for remediation, and leaves the implementation to the security teams.

According to Richard Seewald, managing partner at Evolution Equity Partners, “Pentera has revolutionized enterprise security testing and validation practices. The company’s exceptional growth, strong enterprise adoption, and innovative approach to Automated Security Validation make it the clear leader in this field. We are proud to lead this investment and continue our relationship with Pentera as it expands globally, develops its technology, and sets the industry standard for security validation.”