The 10 Top Funded Cybersecurity Companies in the D.C. Metro Area
By Sam Sabin / DCCINO
Cybersecurity has long been said to be a hot industry in the D.C. metro area.
In a three-year period from 2011 to 2014, the D.C. metro area saw three cybersecurity acquisitions totaling $4.1 billion. And currently, there are more than 77,500 filled cybersecurity jobs in the D.C. metro area, and another roughly 41,700 job openings in the field, according to records maintained by the Commerce Department’s National Institute of Cybersecurity Education.
In February, CB Insights ranked the the top funded cybersecurity startups from each of the 50 states and the District of Columbia and found that Maryland’s Tenable Network Security was the second highest funded startup in the entire country. The company, which is reportedly exploring an IPO, fell behind California-based Tanium.
But, outside of Tenable, what are the other companies making funding moves in the region? Using data from the Crunchbase Pro database, DC Inno sought out to answer that question.
DC Inno collected disclosed equity funding information on companies headquartered in either the D.C. metro area and identified themselves with one of the following industries: cybersecurity, security, compliance, network security and risk management. DC Inno also pulled from our own archives for news.
Here are the results:
1. Tenable Network Security: $300M
Considering the company’s recent hire of Morgan Stanley to explore a possible IPO, it might not come as a surprise that Tenable outranks everyone else in the region. Founded in 2002, the Columbia, Maryland-based company sells software used by businesses and governments to monitor cyber threats, such as those from unpatched software vulnerabilities. Customers include Amazon, Apple and JPMorgan Chase.
Tenable’s most recent funding round in November 2015 came in at $250 million, the largest cyber funding round in history.
2. Alarm.com: $163M
Before debuting on the public markets in 2016, Alarm.com had raised a significant sum of equity. The Vienna, Va.-based, Internet of Things software security company raised a Series B round of $136 million in 2012 with Palo Alto, Calif.-based TCV leading the round.
Now, Alarm.com trades on the Nasdaq. It started traded at $14 per share in June 2016, and it closed on Wednesday at $42.71 per share.
3. Cyren: $124.2M
Founded in 1991, the McLean, Va.-based cybersecurity company debuted on the Nasdaq in 1999; however, the company has still raised a fair amount of post-IPO equity in the years following. Cyren provides web, email, mobile and endpoint security protection products for the world’s largest iT companies.
Pre-IPO, Cyren raised at least one round of funding that was disclosed, coming in at $20 million. It last raised a post-IPO equity round in November.
4. LookingGlass Cyber: $108.7M
LookingGlass Cyber Solutions walked away from 2017 with one of the largest funding rounds in the D.C. metro area. In August, the Reston, Va.-based company raised a $26.3 million Series D round, including both debt and equity funding.
Founded in 2006, LookingGlass develops ScoutVision, a security product aimed at detecting and responding to any threats in a security network — often before the threat gets far enough to do any damage.
5. Endgame: $92.6M
Much like the name implies, Arlington, Va.-based Endgame focused on endpoint security solutions. Endgame relies on machine learning and data science to prevent and detect attacks at every stage of an attack.
Endgame last received funding in the form of a contract with the U.S. Air Force valued at $18.8 million. As a result, Endgame’s technology was deployed across thousands of internal Army computers operated by military cyber protection teams.
6. Savi Technology: $82.5M
Founded in 1989, Alexandria, Va.-based Savi Technology creates tools allowing companies and military personnel to track packages and cargo in realtime. For most of its lifespan, Savi functioned as a government solutions option and federal contractor. Recently, it’s started catering to other enterprise clients outside of the government.
In 2012, Savi spun out from Bethesda-based Lockheed Martin to expand into its own business. In 2015, the company raised $15 million to expand its offerings beyond the Department of Defense and into commercial and industrial markets.
7. AppGuard: $80M
Owned by Japan’s Blue Planet-works, Chantilly, Va.-based AppGuard develops technology to prevent security breaches that might be too nuanced for traditional anti-virus software, including fileless malware, botnets, polymorphic malware, ransomware and more.
The company last raised $30 million in funding in September from Japan’s JTB Corporation. The funding was used to complete an acquisition of secure video messaging service KeepingTree.
8. Sonatype: $74.7M
Fulton, Md.-based Sonatype was founded in 2008, and the company counts notable firms like New Enterprise Associates, Accel Partners, Hummer Winblad Venture Partners and Goldman Sachs as investors.
In February 2016, Sonatype raised $30 million, led by Goldman Sachs, in a mix of equity and debt financing. The company, which creates an automated, policy-driven component security product, counts 12 of the top 15 North American banks as clients.
9. Fugue: $73.7M
Frederick, Md.-based Fugue is also among the cyber startups that walked out of 2017 with one of the largest funding rounds of the year. In January 2017, the company scored a $41 million Series D round led by New Enterprise Associates.
Founded in 2012, Fugue creates a product aimed at simplifying cloud-based work and the infrastructure it’s housed in. To give a sense of its scale, the product was first used to operate workloads found on Amazon Web Services.
10. Mandiant: $70M
Alexandria, Va.-based security startup Mandiant was acquired in 2014 by FireEye in a $1 billion deal, and, at that price point, it’s a given that the company raised a fair sum before exiting.
Past investors include Kleiner Perkins Caufield & Byers and One Equity Partners, an investment arm of JPMorgan Chase. Mandiant, before being folded into FireEye, provided products, professional services and education to numerous Fortune 500 companies, government agencies and financial institutions.
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