Zero Trust Vendor Portnox Receives $37.5M in Series B Funding Round

With a new $37.5 million Series B funding round received from investors, security vendor Portnox plans to boost the development and growth of its cloud-native, zero trust access control platform around the world.

The unified platform, called Portnox Cloud, also provides passwordless authentication and authorization, risk mitigation, and compliance enforcement for enterprises and their networks, applications, and infrastructure.

“This $37.5 million Series B round is a major leap forward for Portnox,” Denny LeCompte, CEO of Portnox, told ChannelE2E. “It gives us the momentum to accelerate everything – from product innovation to go-to-market strategy.”

The investment round, which was recently announced, was led by Updata Partners and follows Portnox’s $22 million Series A round of funding led by Elsewhere Partners in 2022. The two funding rounds bring the total investment in the company to $59.5 million.

“The lion’s share of this investment will go toward expanding our platform’s capabilities for enterprise organizations – where we see the most demand for unified, cloud-native access control,” said LeCompte. “This funding gives us the freedom to think bigger and move faster. It allows us to grow our team, expand our global footprint, and continue innovating in areas like device visibility, policy enforcement, and access control. We are focused on making complex security simple – and that requires continuous investment in R&D, customer experience, and beyond. Our goal is to give every organization, regardless of size or complexity, a smarter, easier way to secure network and application access.”

The Series B funds will also be used to help Portnox expand its offerings and services to MSPs and their customers, he added.

“MSPs are an important part of the broader ecosystem we support,” he said. “This funding allows us to make targeted investments that improve the experience for our MSP partners – whether that is streamlining multi-tenant management, simplifying customer onboarding, or improving integration with their existing toolsets. Our platform is designed to scale easily, which naturally benefits MSPs serving a diverse client base.”

Unified Access Control is Business-Critical, Say Analysts

The rise and growth of unified access control for businesses is helping to provide beneficial security options for companies of all sizes, Anurag Agrawal, founder and chief global analyst at Techaisle, told ChannelE2E.

“For SMBs and mid-market businesses, the rise of unified access control, especially cloud-native solutions, democratizes access to robust security capabilities,” said Agrawal. “It addresses key challenges around complexity, resource constraints, scalability, and the evolving threat landscape, allowing these organizations to bolster their security posture effectively and efficiently.”

For Portnox, the company’s new funding “signals a continued focus and innovation in this critical segment, which should translate into more tailored and accessible solutions for these often-underserved businesses,” said Agrawal. “This funding will likely inject significant potential into Portnox's MSP partnerships. A more robust and comprehensive platform directly translates to richer service offerings for MSPs, enabling them to deliver more sophisticated and integrated security solutions to both small and medium business (SMB) and enterprise clients.”

For MSPs, this can be a benefit when aligned with a well-funded vendor like Portnox,” he said.

“MSPs can gain a distinct competitive edge in a crowded market, offering cutting-edge unified access control as a powerful value proposition,” said Agrawal. “Furthermore, as Portnox expands its capabilities, it unlocks new revenue streams for MSPs through the provision of novel managed security services, ultimately fostering business growth and strengthening long-term client relationships. However, MSP success depends upon Portnox’s focus on channel partner programs which are neither well-known, nor well-established.”

Another analyst, Jack Gold, principal analyst at J. Gold Associates, agrees.

“Zero trust and cloud-native are hot spots today for security in small and large enterprises,” said Gold. “It is clear that traditional network access controls like passwords are not keeping the bad actors out. Zero Trust is a way to achieve a heightened security posture, and if you can do it as-a-service in the cloud then it relieves the IT department of managing a slew of tools.”

For SMBs, “having a service provider that can ensure a secure access environment is a major cost savings since it does not need to have internal IT staff management,” added Gold. “This is a growth market for MSPs.”