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MDR Funding: Binary Defense Systems Raises $36 Million

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Binary Defense Systems, a managed detection and response (MDR) provider, has closed a $36 million institutional growth equity funding round led by private equity firm Invictus Growth Partners.

The company will use the funding to bolster its sales and marketing, expand its partner ecosystem and machine learning capabilities and create an extended detection and response (XDR) offering, according to a prepared statement.

Binary Defense Unveils New Leadership Team, Adds Microsoft Sentinel Capabilities

The institutional growth funding news comes after Binary Defense in September 2022 appointed cybersecurity industry veteran Bob Meindl as its CEO. Along with hiring Meindl, Binary Defense also announced the following additions to its leadership team:

  • Dan Adcock as chief operating officer
  • Tracy Caudill as chief commercial officer
  • Jason Vest as chief product officer
  • Joe McMann as head of cyber services

Binary Defense's leadership team will continue to build on the company's cybersecurity solutions, Meindl said. It plans to enhance the business' existing cybersecurity solutions and add security services.

Previously, Binary Defense in July 2022 integrated Microsoft Sentinel capabilities into its managed security service offering. In doing so, organizations can utilize Sentinel's security information and event management (SIEM) and security orchestration, automation and response (SOAR) capabilities in conjunction with Binary Defense's managed security service, the company noted.

MDR Providers Critical Start, eSentire Add Funding

In addition to Binary Defense, MDR provider Critical Start and eSentire have secured funding in 2022. Critical Start received a $215 million investment from private equity firm Vista Equity Partners. Meanwhile, eSentire raised $325 million from multiple investors.

The global MDR market is projected to expand at a compound annual growth rate of 6.8% between 2022 and 2028 and could be worth $6.1 billion by 2028, according to industry analyst KBV Research. This could drive investments in MDR providers in the months and years to come. It also could lead MSSPs to increasingly integrate MDR services into their portfolios.

Dan Kobialka

Dan Kobialka is senior contributing editor, MSSP Alert and ChannelE2E. He covers IT security, IT service provider business strategies and partner programs. Dan holds a M.A. in Print and Multimedia Journalism from Emerson College and a B.A. in English from Bridgewater State University. In his free time, Dan enjoys jogging, traveling, playing sports, touring breweries and watching football.