2023 has been a remarkable year in more ways than one. The markets have shifted from relentlessly pursuing growth to rewarding efficiency. Enterprises are aiming for greater capital efficiency by managing workforce size and consolidating tech expenses where feasible. Consequently, CFOs have gained more influence and become more discerning decision-makers in software choices. Products are scrutinized based on necessity, i.e., nice-to-have vs. must-have, leading to longer and more intricate enterprise sales cycles.

We’ve also seen a distinct shift towards buying a consolidated platform rather than a best-of-breed solution. We’ve always been firm believers in platform plays at Canaan and are very happy to see many of our portfolio companies, including Contentsquare, Mindtickle, and Snyk, benefiting from this trend.

2023 was also the year when AI captured the public imagination. It’s incredible to see the awareness and adoption of AI technology increase in such a short period. Since 2019, we’ve led early rounds with the thesis that the success of AI will not be measured by productivity gains but rather by the actual work done, acting as a force multiplier for information workers. It’s gratifying to see some of these early investments, including Fireflies.ai, Lily.ai, and Alkymi.ai, coming of age.

The public and private markets have remained turbulent. However, history has shown us that turmoil often breeds opportunities, particularly for forward-thinking founders willing to seize them. Great founders persevere in hiring the best people and creating a long-lasting brand by taking advantage of lower competition. We closed our thirteenth fund earlier this year and are looking to partner with many such entrepreneurs. A few of our recent investments are highlighted below, with more to be announced soon. We also have an opportunity fund to support the strongest companies from our existing portfolio. We’re investing actively and incredibly optimistic about the companies being formed today.

Joydeep Bhattacharyya, Maha Ibrahim, Nandu Anilal, and Rayfe Gaspar-Asaoka
Canaan Enterprise Team

Portfolio News

HPE Acquires Axis Security

The Company: Axis Security addresses the need for improved application performance and increased network security as remote users increase and enterprises migrate applications to the cloud.

The Founders: Dor Knafo, Gil Azrielant, Shuky Chen

The News: The acquisition enables HPE to expand its edge-to-cloud security capabilities by offering a unified Secure Access Services Edge (SASE) solution to meet increasing demand for integrated networking and security solutions delivered as-a-service.

The Blog: Read Joydeep’s post on Axis.

Canaan Leads $30 Million in SAVVY Security

The Company: SAVVY enables enterprises to tackle SaaS vulnerabilities with just-in-time guardrails that automate security workflows to prevent potential incidents and provide guidance that empowers users to make better decisions.

The Founders: Yoav Horman, Guy Guzner, Eldar Kleiner, and David Ben Zakai

The News: SAVVY exited stealth and announced $30 million in funding in July 2023. We led the Series A round with participation from Cyberstarts and Lightspeed.

The Blog: Read Joydeep’s post on SAVVY.

Snyk Named to CNBC’s Disruptor 50

The Company: Snyk integrates security into existing workflows of software developers, enabling companies to build more secure applications and counter increasingly sophisticated cyberattacks.

The Founders: Guy Podjarny, Assaf Hefetz, Danny Grander

The News: Snyk was among only 50 companies on this eleventh-annual list, identifying the world’s top private startups chasing some of the market’s biggest opportunities. This is the latest in a list of accolades for Snyk, as the company was also recognized as part of CNBC’s Top Startups for the Enterprise, #19 on Forbes’ Cloud 100, and Built In's 2023 100 Best Places to Work in Boston, highlighting Snyk’s place as an emerging force in the cybersecurity industry, but also across the technology sector as a whole.

Contentsquare Named to Forbes’ Cloud 100

The Company: Contentsquare is an AI-powered SaaS platform that delivers complete digital experience insights.

The Founders: Jonathan Cherki

The News: Contentsquare was #66 of the world’s top 100 private cloud computing companies on Forbes’ eighth annual Cloud 100 list. The company was also recently recognized among LinkedIn’s Top Companies France, G2’s Summer 2023 Best Software Awards, and Microsoft’s 2023 French Independent Software Vendor Partner of the Year.

The Latest

Announcing Canaan XIII

We were thrilled to announce $850 million in new capital in April to support transformational tech and healthcare companies. We are incredibly grateful to our limited partners and our portfolio founders for honoring us with their trust. Read more about the news here.

We're actively investing across Seed, Series A, and B from Canaan XIII, and within enterprise, we’re very excited about cybersecurity and the application of generative AI across business functions, verticals, and use cases.

Other Happenings

Maha Ibrahim was named to Forbes’ 50 Over 50!

Fireflies.ai was named among eWEEK’s Best Artificial Intelligence Software 2023 and Best AI Meeting Assistants & Tools for Notetaking 2023!

Tropic was named one of LinkedIn’s Top Startups 2023 and among Fortune's Best Workplaces in New York!

HUMAN Security was named one of the TIME100 Most Influential Companies!

Dragos raised $74 million to bring total funding to $440 million!

Lily AI was featured in the New York Times and Bloomberg!

Paxos was named to Forbes' Fintech 50!

Featured Canaan Content

SaaSQ: Lessons in Fundraising, Budgeting, and Scaling in Uncertain Times
Discussing company building with renowned enterprise software CFO Mike Scarpelli
Joydeep Bhattacharyya, General Partner at Canaan

AI/ML: Data Trojan Horse
Updating my framework to better evaluate AI/ML companies
Rayfe Gaspar-Asaoka, Partner at Canaan

Compound Startups
Outlining a new era of consolidation where the 'compound business' wins
Nandu Anilal, Investor at Canaan