[Updated 5/30/17, 9:39 am. See below.] Cybersecurity firm CounterTack announced today it has expanded its coffers with a new $20 million funding round from investors. It could be good timing for the Waltham, MA-based company.
The recent WannaCry ransomware cyber attack and President Donald Trump’s executive order laying out federal cybersecurity priorities could spell new opportunities for cybersecurity companies to sell their products and services. CounterTack plays into both of those themes. The company makes endpoint detection and response products that it says aim to ward off ransomware and other threats by focusing on the devices that access an organization’s network, such as smartphones, laptops, and servers. CounterTack’s more than 250 customers include businesses located around the world, as well as government entities in North America.
When asked about the potential business impact of Trump’s executive order, a CounterTack spokesman said the company predicts “a sharp uptick not just in demand, but more budget for cyber innovation across the board” in the federal government.
The $20 million Series D round was led by two new CounterTack investors: Singtel Innov8, the Singapore-based venture capital arm of the Singtel Group; and SAP National Security Services (NS2), an independent subsidiary of SAP that provides computing products and services to U.S. government entities focused on national security.
CounterTack said it will use the new money to try and pick up more customers, focusing on large enterprises, federal entities, and businesses and organizations located in the Asia-Pacific region. There could be opportunities to integrate its products with those of SAP NS2, according to a press release.
CounterTack’s approach to cyber defense involves trying to detect and analyze malicious behavior in real time and stop it before it inflicts major damage. The firm’s products play into broader themes around automating cybersecurity tasks and trying to respond more quickly to attacks.
The company was founded in 2004 in Alexandria, VA, under the name NeuralIQ. In 2011, it raised a $9.5 million Series A round, rebranded itself, moved its headquarters to Waltham, and brought in new management. It also has two offices in California and an office in Singapore, according to its website. CounterTack employs 90 people, and plans to hire at least 20 more, a spokesman said. [This paragraph updated with number of employees.]
To date, CounterTack has raised about $90 million from investors, according to the spokesman. Its other backers include Goldman Sachs, TenEleven Ventures, ManTech International, Siemens Venture Partners, and EDBI, the corporate investment arm of the Singapore Economic Development Board.
In recent weeks, a number of cybersecurity companies have announced new venture rounds. They include CrowdStrike in endpoint security, Wandera in mobile security, and Karamba in automotive security.
