Socket Raises $40M to Combat Open Source Security Threats

Socket, a software security startup that protects companies from supply chain attacks, has secured $40 million in Series B funding. The funding round was led by Abstract Ventures, with participation from Andreessen Horowitz (a16z), Elad Gil, and a notable group of angel investors, including OpenAI's Bret Taylor and Shopify's Tobias Lütke.

Socket's technology aims to solve a growing problem: the security of open-source code, which now constitutes over 90% of the components in modern applications. Traditional security tools like Software Composition Analysis have struggled to keep up with the increasing sophistication of supply chain attacks, leaving organizations vulnerable.

“We’re not just catching vulnerabilities—we’re detecting and blocking malicious threats in real time,” said Socket CEO Feross Aboukhadijeh. The company’s platform scans open-source components for threats like backdoors, typo-squatting, and obfuscated code, providing real-time insights to engineering teams during code reviews and dependency updates.

The rising prevalence of supply chain attacks has highlighted the need for tools that offer more than just vulnerability detection. Socket's platform has integrated AI-powered threat detection across six programming languages, including Java and Ruby, to identify and block over 100 attacks weekly.

Amjad Masad, CEO of Replit, noted the importance of Socket's approach in the context of the increasing speed of software development driven by generative AI: “The risk of malicious or vulnerable packages slipping through is higher than ever. Socket provides preventative protection, enabling developers to innovate without sacrificing security.”

Socket’s solution appears to resonate with a wide array of companies. From AI firms like Anthropic to consumer and financial enterprises, over 7,500 organizations currently rely on Socket to secure their code. The company’s ability to “rip-and-replace” legacy security solutions such as Snyk has played a crucial role in its rapid growth, with customers citing enhanced security without compromising the developer experience.

Socket plans to use the new capital to expand its 32-person team to 50 by year-end, focusing on engineering and product development. We’re building a world-class team to tackle one of the most urgent challenges in software today,” said Aboukhadijeh, emphasizing Socket’s mission to provide peace of mind to developers and security teams by stopping supply chain threats before they infiltrate organizations.

The investment brings Socket's total funding to $65 million since its founding in 2021 and vqlues the company at approximately $500 million. The company expects to grow revenue by 400% in 2024, signaling strong market demand for its security solutions.

Chris McKay is the founder and chief editor of Maginative. His thought leadership in AI literacy and strategic AI adoption has been recognized by top academic institutions, media, and global brands.