Tailscale Lands Major $160M Series C for Big Growth

Tailscale, a network software company, has raised an impressive $160 million in a Series C funding round. The round was backed by Accel, and includes partnerships with CRV, Insight Partners, Heavybit, Uncork Capital, and angel investors George Kurtz and Anthony Casalena.

Summary:

1. A secure networking startup, has raised $160 million in Series C funding led by Andreessen Horowitz and Accel, bringing its total funding to over $237 million.

2. The company plans to scale its engineering team, improve user experience, and expand enterprise adoption of its mesh VPN solution.

3. This investment reflects growing market demand for privacy-focused, user-friendly networking tools, aligning with broader tech trends like Google’s Gemini AI advancements.

This move marks a major milestone for the networking startup, helping it scale up operations, strengthen its technology, and attract more attention from the venture investment ecosystem.

What is Tailscale?

Tailscale is an interacting startup focused on providing private and secure network connections for teams and devices. It allows users to create a secure virtual network much like a VPN, without the complexity of traditional solutions.

With its user-friendly setup, the networking app has become especially popular among developers, small businesses, and larger tech teams that want to securely access internal services from anywhere. The company relies on WireGuard, a modern VPN protocol, and offers cross-platform support for ease of use.

The funding round was led by Andreessen Horowitz (a16z), a well-known name in venture capital. Existing investors, including Accel, CRV, and Heavybit, also participated in the round. The $160 million raised brings Tailscale’s total funding to over $240 million to date.

The company did not disclose its post-money valuation, but sources close to the deal estimate it to be over $1 billion, placing Tailscale firmly in the unicorn category.

The Series C funding was announced in early April 2025. According to the company, the funding round had been in discussion for a few months and closed recently after solid growth metrics were presented to potential investors.

Based in Toronto, Tailscale is expanding rapidly in both the U.S. and international markets. With this new capital, the networking company plans to grow its engineering and support teams, add new features to its product, and enhance customer support.

The startup will also scale its marketing efforts, improve infrastructure, and reach a broader range of customers- from small developers to enterprise teams.

Why the Industry Is Buzzing About Tailscale

This funding round puts Tailscale in a strong position to compete in the growing world of secure, remote networking. As more companies adopt hybrid and distributed work models, the demand for secure and easy-to-manage networking tools is rising sharply.

The networking software company offers a solution that’s flexible, secure, and scalable- making it appealing not just to users, but also to the venture investment community that sees long-term growth potential in the sector.

The company’s focus on usability and privacy gives it an edge over traditional VPNs, which can be complex and slow to configure. The app’s model allows businesses to move faster while keeping security front and center.

The CEO of the app said the new funding will go toward product development and global expansion. The team wants to stay ahead by introducing new tools that improve user control, auditability, and team management within secure networks.

There are also plans to grow partnerships and integrations, making Tailscale work more seamlessly with cloud platforms, DevOps tools, and security software. These efforts are expected to bring more users into the Tailscale ecosystem and drive higher engagement.

The Bottom Line

$160 million in fresh funding signals one thing loud and clear: Tailscale is no longer just building- it’s scaling with serious momentum. As a leading networking company, Tailscale is now well-positioned to innovate faster, serve more customers, and stand out in the competitive secure networking space.

With growing support from the business investment world and rising demand for safer, simpler networking tools, Tailscale is one to watch as the tech landscape continues to evolve.