Dan Lorenc, Founder of Chainguard:$250M Raised to Build the Future of Software Supply Chain Security

Introduction

In today’s tech landscape, software supply chain security has emerged as a critical concern, especially with the increasing reliance on open-source code. Leading this charge is Dan Lorenc, the founder of Chainguard, a software supply chain security platform that has successfully raised $ 250 million in funding.

Tackling Software Supply Chain Security

At its core, Chainguard aims to secure the software development process, which involves everything from how developers write code to how that code is pushed into production and the integrity of third-party dependencies. Notably, modern applications often utilize open-source components, which can account for 90 to 98% of their codebase. While this vast library of shared software offers a treasure trove of resources for developers, it also presents significant security risks. Open-source code is created by various individuals across the internet, making it susceptible to vulnerabilities.

To address these concerns, Chainguard positions itself as a trusted source for open-source code by providing vetted and secure platforms that meet compliance requirements. This approach enhances the safety net for developers looking to utilize open-source dependencies without compromising their applications' security.

The Genesis of Chainguard

The pivotal moment for the software supply chain security sector came with the SolarWinds breach in late 2020. It prompted questions about the industry's pre-existing vulnerabilities and spurred heightened awareness around the issue. Prior to this incident, Dan Lorenc, who had spent nearly a decade at Google working on security measures, recognized the urgency of addressing these gaps.

In October 2021, Lorenc, alongside his co-founder Matt, decided to venture out on their own without the safety net of a traditional pitch deck. Armed with a vision to create a safer open-source space, they took a bold leap, and against a backdrop of a favorable venture capital climate, they rapidly secured funding and began building the company.

Early Days and Strategic Choices

The initial months post-funding were characterized by intense exploration. The team at Chainguard threw multiple ideas against the wall to see what would resonate with potential customers. Although this phase came at a time when venture capital was booming, the landscape remained chaotic due to the varied tools being developed for software supply chain security—a fact that still complicates the industry today.

As the company progressed, they learned an important lesson about the importance of strategic pivots. By observing customer feedback and market trends, they made critical adjustments to their focus and product offerings, eventually transitioning to a more promising direction by early 2022.

Go-to-Market Strategy and Brand Awareness

Chainguard’s current strategy revolves around a top-down sales approach. This entails focusing on executive-level sales, particularly targeting Chief Information Security Officers (CISOs), while also engaging developers, who play a critical role in implementing the solutions. The company adopted a multi-faceted marketing strategy, emphasizing inbound lead generation and brand recognition during what they anticipated would be a tight budget year.

Their approach relied heavily on authentic engagement with industry media, utilizing platforms like LinkedIn for brand storytelling and outreach. By producing useful content and commenting on cybersecurity topics, they effectively raised awareness and positioned themselves as thought leaders in the space.

Insights on Funding and Growth

Having successfully navigated multiple funding rounds, Lorenc has learned that building genuine relationships with investors is crucial. Rather than relying on traditional pitch decks, they focused their energy on product development and business growth, as well as meaningful investor engagement.

Now with a dedicated sales team in place, Chainguard is experiencing substantial growth. Lorenc emphasizes that hiring the right sales reps early in the company’s journey is vital, as their expertise can significantly expedite navigating enterprise sales cycles.

The Vision Ahead

Looking towards the future, Dan Lorenc envisions Chainguard as “a safe source for open-source.” The team plans to develop comprehensive solutions that address various aspects of open-source security, which will take years of innovation and adaptation to realize fully.

As the conversation surrounding software supply chain security continues to evolve, Chainguard is poised to be at the forefront, ensuring developers can confidently build and integrate open-source components into their applications without fear.

Keywords

• Dan Lorenc
• Chainguard
• Software supply chain security
• Open-source code
• SolarWinds breach
• Security vulnerabilities
• Venture capital
• CISO
• Sales strategy

FAQ

1. What is Chainguard?
Chainguard is a software supply chain security platform that focuses on securing the development process and open-source dependencies used in applications.

2. How much funding has Chainguard raised?
Chainguard has successfully raised $ 250 million in funding to develop its security solutions.

3. What prompted the founding of Chainguard?
The SolarWinds breach in late 2020 highlighted significant vulnerabilities within the software supply chain, leading Dan Lorenc and his co-founder Matt to start Chainguard in response.

4. What is the company's go-to-market strategy?
Chainguard employs a top-down sales approach targeting executives like CISOs, while also engaging with developers for implementation.

5. What is the vision for the future of Chainguard?
The vision is to become "a safe source for open source," developing solutions to secure open-source code effectively.