Top Early-Stage Cybersecurity Rounds Of 2018 (So Far)

It’s been nearly a year since Crunchbase News reported that investors are eager to fund cybsersecurity startups. In the story, Menlo Ventures’ Venky Ganesan shared with Mary Ann Azevedo his outlook on the industry:

“If there’s a recession-proof idea that’s not cyclical, it’s cybersecurity,” he told Crunchbase News. “In essence, everything in our lives is going from analog to digital. When that happens the most important thing becomes protecting digital assets, and all these people trying to hack into companies and governments’ accounts are creating demand for cybersecurity products.”

In looking at the cybersecurity space in 2018, this analysis still rings true. With Facebook, TaskRabbit, and Equifax suffering from data breaches of their own, cybersecurity is still a critical concern at the government, company, and individual level.

That may mean good news for security startups. Carbon Black went public in its own so-far successful IPO back in May. And according to Crunchbase, more than 25 early-stage, U.S.-based cybersecurity-adjacent startups have raised at least $10 million so far this year.

Here is a brief list of early-stage startups that have raised the biggest venture rounds halfway through 2018.

NSA Attitude, SV Capital

At the top of our list is Maryland-based IronNet Cybersecurity. The company raised a $78 million Series B led by C5 Capital in May 2018, the largest raise reported by an early-stage U.S. cybersecurity-focused startup. Other investors in the round included ForgePoint Capital and Kleiner Perkins.

The company gathers data and uses its technology to characterize normal behavior and detect abnormalities, prioritizes threat detections, and supply analysts with information to prevent advanced attacks. IronNet, according to its website, provides services to companies in energy, financial services, healthcare, government, and manufacturing.

IronNet was founded (appropriately) by former director of the United States National Security Agency (NSA) General Keith Alexander in 2014. It has raised a known total of $110.5 million.

Alexa Poses A Threat

A second startup, Armis Security, raised a $30 million Series B in April to bring security to Internet of Things (IoT) devices. Armis is backed by Sequoia, Bain Capital, Tenaya Capital, and others. It has raised a known total of $47 million since it was founded in 2015.

The San Francisco and Israel-based company aims to use its security technology to protect businesses from hacking through connected smart devices, including laptops and phones, as well as TVs, webcams and other devices. Its technology monitors and scans devices that connect to an organization’s network, detecting malware and disabling threats. The company’s platform also integrates with analytics services, allowing companies to view more comprehensive cybersecurity data and manage connected devices.

Armis’s efforts shed light on vulnerabilities arising from our dependence on devices as seemingly harmless as webcams, phones, and even smart speakers. For VCs and entrepreneurs, it is also a convenient opportunity to cash in.