Securing Open Source Software with Dan Lorenc, Co-founder & CEO of Chainguard
Nov 2, 2023
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Dan Lorenc, Co-founder and CEO of Chainguard, talks about the software supply chain and the vulnerabilities it poses. He discusses the history of open source software, the moment they decided to start Chainguard, and why they started selling consulting services before building a product. Dan also shares insights on their marketing strategy, raising funding, and the challenges and risks in open source software.
The software supply chain is a critical issue in cybersecurity, with recent high-profile attacks highlighting its importance.
Open source software introduces vulnerabilities and risk into the software supply chain, requiring measures to ensure security and integrity.
Starting a company requires resilience, adaptability, and proactive marketing to raise awareness and establish credibility.
Fundraising for a startup involves strategic decision-making, adaptability to changing market conditions, and maintaining a strong balance sheet for growth.
Deep dives
The Cyber Resiliency Act and its impact on open source software
Europe has introduced the Cyber Resiliency Act (CRA), which attempts to mandate software security but has raised concerns. The bill is seen as potentially detrimental to open source software, as it holds original authors liable for vulnerabilities even if they weren't paid or had any relationship with the company that used their code. The US has taken a more thoughtful approach to software security regulation. This regulatory landscape is creating uncertainty and challenges for the industry.
The importance of software supply chain security
Software supply chain security is a critical issue that affects many businesses. It involves the steps and processes involved in getting software from the developer's keyboard to production and users. Attackers often target vulnerabilities in the supply chain, compromising the software or injecting malware. The software supply chain has become a major topic in the cybersecurity industry, with recent high-profile attacks like SolarWinds highlighting the importance of this issue.
The challenges and complexities of open source software
Open source software is a significant part of the modern application stack, with approximately 90-98% of code being open source. However, the open nature of open source software introduces vulnerabilities and the risk of exploitation. Developers often rely on open source components, but may not have control over the software they use, as vulnerabilities can exist several layers deep. The challenge lies in ensuring the security and integrity of open source software throughout the software supply chain.
Effective strategies for startup founders and co-founders
Starting a company requires a strong team and the ability to navigate challenges. Founders must be resilient, adapt quickly to changing circumstances, and focus on problem-solving for their customers. Building relationships and getting feedback from prospective customers is crucial, as it helps identify the most pressing problems to solve. Being proactive in marketing and communications, such as utilizing memes and thought leadership content, can also help raise awareness and establish credibility in the industry.
Navigating the fundraising process for a startup
The podcast episode discusses the challenges and experiences of fundraising for a startup. The speaker shares their personal journey, highlighting the initial ease of capital raising and the importance of making strategic decisions when selecting investors. They emphasize the significance of balancing fundraising efforts with the company's growth and the need to adapt to changing market conditions.
Scaling the company and shifting focus
The episode delves into the process of scaling a company and shifting focus to meet market demand. The speaker highlights the challenges of implementing a sales motion and enterprise sales strategy, emphasizing the need for founders' involvement in value selling and building strong customer relationships. They discuss the transition from an initial product with slower adoption to a new product that sees rapid growth and customer satisfaction.
Raising Series A and Series B funding
The podcast explores the experiences and lessons learned from raising Series A and Series B funding rounds. The speaker discusses the urgency and fast-paced nature of fundraising, recounting their own experiences in securing investments. They emphasize the importance of maintaining a strong balance sheet, fueling growth, and scaling operations to meet revenue targets. Additionally, the episode touches on the challenges of product development and ensuring customer satisfaction in an ever-evolving landscape.
Dan Lorenc is the Co-founder and CEO of Chainguard, the best way to secure your open source software. Dan and his co-founders Kim, Matt, and Ville started the company in 2021 after spending a decade working together at Google on all things open source and software security.
They’ve since raised $116 million from investors including Spark (led Series B), Sequoia (led Series A), Amplify (led Seed), The Chainsmoker’s Mantis VC, Banana Capital, and dozens of angels in the cyber security and open source communities.
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Topics discussed:
What is the “software supply chain”?
How the SolarWinds breach created the software supply chain security market
The history of open source software
Why open source software makes software supply chains even less secure
The moment Dan and his co-founders decided to start Chainguard
Why they started selling consulting services before even building a product
The reason their first two products solved completely different problems (top-down and bottoms-up), and why the one that didn’t work at first is now their main business
Why Chainguard decided to focus on a broad communications and marketing strategy so early on
How Dan gets quoted in major media publications as an early stage startup founder
Why Chainguard uses memes for marketing
Why Dan thinks startups should “make content optimized for the group chat”
How they raised their Seed round from Amplify a week after leaving Google
Raising a Series A from Sequoia as the market started collapsing in Spring of 2022
Dan’s advice for founders on dealing with investor inbound when not fundraising
Why he wish he hired sales reps sooner
Raising a Series B from Spark Capital to accelerate their enterprise sales process
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Referenced:
https://www.chainguard.dev
https://www.sigstore.dev/
Battling the Trojan Horse in Open Source: https://www.sequoiacap.com/article/dan-lorenc-chainguard-spotlight/
Chainguard Series B Announcement: https://www.chainguard.dev/unchained/series-b-funding
Dan’s favorite open source project: https://github.com/jqlang/jq
Reflections on Trusting Trust: https://www.cs.cmu.edu/~rdriley/487/papers/Thompson_1984_ReflectionsonTrustingTrust.pdf
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Where to find Dan:
Twitter: https://twitter.com/lorenc_dan
LinkedIn: https://www.linkedin.com/in/danlorenc
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Where to find Turner:
Newsletter: https://www.thespl.it
Twitter: https://twitter.com/TurnerNovak
Banana Capital: https://bananacapital.vc
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Production and distribution by: https://www.supermix.io
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Want to sponsor the show? https://docs.google.com/forms/d/e/1FAIpQLSebvhBlDDfHJyQdQWs8RwpFxWg-UbG0H-VFey05QSHvLxkZPQ/viewform
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