Tailscale Inc., a fast-growing, low-revenue Toronto-based startup with 35 employees, has raised $100 million from some of the best-known venture capital funds in the United States. They are betting that its rapidly expanding technology can disrupt the global market for virtual private network (VPN) products.
The financing, led by Charles River Ventures (CRV) and Insight Partners, values Tailscale at $1 billion including cash received. Previous backers like Accel, Heavybit, and Uncork Capital, who invested $15 million in Tailscale two years ago, also participated in the funding.
The three-year-old company was a “pandemic winner” whose rapid growth has been accelerated by employees working mostly from home and connecting to their workplaces remotely. “It’s sad to say this, but COVID has been tremendously beneficial to our company,” said Avery Pennarun, chief executive officer and co-founder, in an interview.
Tailscale offers a…