Huntress is hunting for cybersecurity acquisitions after receiving $40 million in debt financing from CIBC Innovation Banking, the firms disclosed today. Huntress's current business valuation was not disclosed.
The new debt financing arrives at a time when venture capital firms are rethinking technology and cybersecurity business valuations, and near-term IPO windows generally remain closed. Amid that economic backdrop, Arctic Wolf also has been seeking debt financing, reports suggest.
Huntress Cybersecurity Business History, MSP and MSSP Partnerships
Huntress, founded in 2015, is based in Ellicott City, Maryland. The company has 224 employees listed on LinkedIn. Huntress’ areas of expertise include managed services, cyber breach detection, malware analysis and incident response. MSP and MSSP partners typically leverage the Huntress platform to protect SMB customers.
Huntress plans to use the new financing for "M&A opportunities, research, product development, and expansion into international markets across Canada, the UK, Europe, Australia and New Zealand," the firm said.
Recent moves include acquiring security awareness training firm Curricula for $22 million. Earlier, Huntress acquired Endpoint Detection and Response (EDR) security technology from Level Effect in 2021.
Huntress Debt Financing: Executive Perspectives
In a prepared statement about the debt financing, Huntress CEO Kyle Hanslovan said:
“Huntress is growing faster than ever. In a market surrounded by increasingly expensive capital, CIBC Innovation Banking’s team understood our needs as a high-growth startup. With their help, we’ve already made a strategic acquisition, launched new managed security products and more. We’re thrilled that CIBC Innovation Banking supports our vision for the future—this investment will help us continue innovating as we further our mission to protect small and midsized businesses.”
Added Huntress CFO Marcos E. Torres:
“We’re just getting started with our build-and-buy strategy to help businesses strengthen their preventive security efforts. With our level of maturity in M&A and deal structuring, we’ll continue to acquire and develop assets that solve business and technical problems for our partners.”
Concluded Paul Gibson, managing director in CIBC Innovation Banking’s Reston, VA office:
“The Huntress team continues to generate strong growth throughout North America and is poised to become an international market leader helping small and mid-sized businesses with their security needs. Our team looks forward to assisting Huntress with the capital needed to fuel that growth."
Huntress: Previous Venture Capital Funding
Huntress previously raised $40 million in Series B funding in May 2021, and $18 million in Series A funding in February 2020. The company’s existing investors include JMI Equity, Forgepoint Capital, and Gula Tech Adventures.