Cybersecurity platform deepwatch closes Series B round on $53m

Intelligence-driven managed security services company deepwatch has closed its Series B round on $53m, as it looks to expand its partner ecosystem.

Goldman Sachs acted as the lead investor, with commitments also coming from existing backer ABS Capital Partners.

In line with the investment, Goldman Sachs Growth managing director Holger Staude will join the deepwatch board of directors.

The equity infusion has been earmarked for increasing the R&D efforts around its cloud security platform. Funds will also drive the go-to-market strategy and grow the partner ecosystem.

deepwatch provides managed security services by extending customers’ cybersecurity teams and proactively advancing their SpecOps maturity. Its tools include managed detection and response, and vulnerability management to ensure companies are always protected.

The company claims the outsourced security operations industry is currently worth around $25bn and will double to $50bn by 2025.

deepwatch CEO Charlie Thomas said, “We’ve experienced remarkable growth since our inception. Our innovative, cloud first platform, advanced algorithms, and powerful maturity scoring capabilities backed by our relentless focus on customer outcomes are substantially changing modern SOC operations and clearly resonating with CISOs.

“We’re extremely excited about the investment by Goldman Sachs to help the company meet the increased demand for our unique security value.”

The coronavirus has accelerated the demand for outsourced solutions. A recent report from ACA Compliance Group claimed that demand for outsourced managed services has increased by 25%.

Goldman Sachs Growth investor Morgan Gerlak said, “The demand for managed security services is expected to grow as staffing and skill shortages, an ever-evolving threat landscape, and an increasing compliance burden lead companies of all sizes to offload their security needs to specialist providers like deepwatch.”

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