Reston, Virginia-based ThreatQuotient closed a new $22.5 million round of funding as it looks to grow more than 50% this year while adding new products to its offerings.
The investment, a combination of equity and debt financing, comes from a group that includes New Enterprise Associates, Adams Street Partners, Escalate Capital, Blu Ventures, Cisco Investments and Gaingels.
The cybersecurity company is coming off a record fourth quarter after cutting expectations when the pandemic hit last year, said CEO John Czupak.
“We did what a lot of companies did during the COVID era,” Czupak said. “We had aspirations of doubling … but we redid our projections.”
After seeing new business down in the first half of 2020, Czupak said, the last two quarters were solid and the company ended up growing revenue north of 30%. Those results helped the company decide the timing was right to raise money — especially with the pandemic hopefully winding down.
ThreatQuotient had considered raising a larger round in the middle of last year, but decided to raise less now and push growth.
“It just was not the right time to take a large amount of money at that valuation,” he said.
Founded in 2013, ThreatQuotient’s threat intelligence platform (TIP) helps companies investigate incidents through automation and data analysis, maximizing what are usually limited security resources.
“The ThreatQuotient team continues to prove the critical market need for cybersecurity solutions that help security operations analysts increase their productivity,” said Andrew Schoen, a principal at NEA.
While the company normally is considered as competing in the TIP space against other providers such as Anomali and ThreatConnect, Czupak said, ThreatQuotient’s solution has proved useful in other areas such as incident response and phishing use cases.
ThreatQuotient also is watching as the extended detection and response (XDR) space, which provides security threat detection and incident response tools — has grown with large players such as Cisco and Palo Alto Networks, Czupak said. The space may provide an opportunity to partner as its platform can help those solutions make use of data, he added.
With the company sitting at the interactions of what it sees as large cybersecurity markets, Czupak said it could evaluate raising a larger round down the line. ThreatQuotient has raised about $60 million in equity and debt to date, according to the company
He said: “I’m not saying we will raise, but we will see where we are at the end of this year and going into next year.”