Managed detection and response (MDR) cybersecurity specialist GoSecure has raised $20 million in Series E funding led by Yaletown Partners and Bank of Montreal, with existing investors SAP National Security Services (NS2) and Razor’s Edge Ventures participating. The company's valuation was not disclosed.
GoSecure's flagship platform provides behavior-based, predictive detection and response services. The company -- based in Montreal, Quebec and San Diego, California -- now has 200 employees who serve more than 2,000 customers.
GoSecure has grown more than 425 percent over the past two years, though actual revenue and profit figures were not disclosed. Also, it's unclear how much of the growth involved revenue gained from acquisitions -- including the CounterTack merger in 2018 and the EdgeWave acquisition of 2019.
GoSecure MDR Funding: CEO Perspectives, Competition
In a prepared statement about the funding, GoSecure CEO Neal Creighton claimed:
"With over 2,000 customers, GoSecure is the most effective and trusted MDR company in North America. Some of the most sophisticated customers in Government and finance trust GoSecure. While competitors like CrowdStrike continue to stress their Next-Gen AV as the next cybersecurity evolution, GoSecure is already delivering sophisticated MDR services that are protecting customers of all sizes."
GoSecure appears to have critical mass in the MDR market. The company lists Trustwave, Rapid7 and NTT Security (among others) as key partners. But CEO Neal Creighton's lofty claim that the company is "the most effective and trusted MDR company in North America" is questionable.
Gartner's market guide for MDR service providers puts the spotlight on 21 MDR companies. GoSecure was not listed as of the 2018 Gartner report. In our own Top 200 MSSP report for 2019, GoSecure was ranked 102. (Our 2020 list and research will surface in September 2020.)
Meanwhile, multiple companies are striving to scale their MDR services through M&A activity -- including five MDR mergers during the first six months of 2020.
GoSecure MDR Funding: Investor Perspectives
In a prepared statement about the funding, Shyam Gupta, partner at Yaletown Partners:
“GoSecure is in an amazing place and the chance to help them reach the next level was extremely appealing. We’ve been following GoSecure since their early days in Montreal and their progression has been staggering. With the recent acquisitions, growth of the leadership team and market leading technology, they have all the elements necessary to become the leading MDR provider, not only in North America but globally.”
Eric Bukovinsky, partner at Yaletown Partners, added:
“With the rapid changes coming from Digital Transformation, the future of work, and the Intelligent Industry, cybersecurity is a fundamental pillar of digital strategies. GoSecure’s solutions provide the capability and flexibility for both today’s distributed and evolving security perimeter and the dynamic future footprint of digital enterprises.”
Concluded Drew Drake, VP, strategic investments, SAP NS2.
“GoSecure has evolved over the last three years from a differentiated EDR software company into a full suite, full-service cyber security company with a world class management team. We are pleased to further accelerate the company’s already impressive growth trajectory with this transformative round and the success of our joint solution offerings."
Side note: Series E funding deals typically indicate late-stage preparation toward another financial event -- perhaps an initial public offering (IPO) or company sale to a strategic buyer. We'll be watching GoSecure's potential next moves closely.