Earlier this month, Contrast Security, a provider of cyber-security solutions, raised $150 million in a Series E round led by Liberty Strategic Capital. This isn’t the only cybersecurity firm to raise money this week. BlueVoyant, a provider of cloud-based security solutions, raised $250 million, and the New York-based firm iFocus raised $115 million.
BlueVoyant raises $250 million
Founded by former Morgan Stanley chief operating officer Jim Rosenthal, BlueVoyant provides a full suite of cybersecurity services. They offer enterprise solutions to protect networks from external and internal threats. They have around 500 customers in 30 countries. BlueVoyant is also known for their use of Azure Sentinel, a cloud-native SIEM platform that uses artificial intelligence to detect and respond to threats.
BlueVoyant also offers a digital risk protection service that provides real-time visibility of external threats. The company’s platform can also detect company data on the web, evaluate the attack surface of corporate networks, and take action to alert an organization if something is amiss.
BlueVoyant’s unique approach has helped the company fuel rapid growth. Since the start of 2017, the firm has surpassed 80% annual recurring revenue growth, while the number of customers has increased by 117%.
The company plans to use the new funding to expand its market footprint around the world. They are also planning to enhance their advanced technical capabilities.
Contrast Security raises $150 million in Series E round led by Liberty Strategic Capital
Founded in 2014, Contrast Security is a Los Altos, California-based application security startup. It provides next-generation code security tools that enable enterprise developers to write and test secure applications faster. It works by embedding code analysis and attack prevention into software. It’s a platform that secures code for tens of thousands of developers, and it’s working with companies like BMW, American Red Cross, AXA, DocuSign, and Microsoft.
Contrast Security focuses on cloud-native apps. Its agents are embedded into data layers, controllers, user libraries, and app servers. These agents are used to detect vulnerabilities across web browsers and frameworks. In addition to identifying and preventing bugs, Contrast Security also provides context-specific guidance for remediation.
Contrast Security has been recognized as the “Gartner Peer Insights Customers’ Choice” for application security testing. It was named to the list for its ability to identify and prevent vulnerabilities in applications. It’s also a member of the Cloud Native Computing Foundation.
Michael D’Ambrosio
Managing Director of Liberty Strategic Capital and a former Assistant Director of the Office of Investigations, Michael D’Ambrosio has a lot on his plate. He is a former infantry officer in the United States Marine Corps and has served in numerous roles for the US Secret Service. He holds a BA in Business Administration from Siena College, as well as an MS in National Security Strategy from the National War College.
In his current role as Managing Director of Liberty Strategic Capital, Michael D’Ambrosio is responsible for a number of high profile investments in cybersecurity, data privacy, and identity verification firms. While he’s most likely not going to be responsible for managing the next Facebook or Twitter, his expertise will be put to good use assisting Satellogic in its quest to become a public company.
Liberty Strategic Capital is the brainchild of former Treasury Secretary Steven T. Mnuchin and is a Washington DC based private equity firm specializing in the technology, media, and financial services sectors. The company has raised approximately $265 million in capital. The latest round of investments will see the firm take a minority position in Satellogic.
Steven Mnuchin
During his time as Treasury Secretary, Mnuchin oversaw the financial services industry’s cybersecurity efforts. He also served as chairman of the Committee on Foreign Investment in the United States, and played a leading role in shaping the nation’s economic agenda. Since leaving the Department of Treasury, Mnuchin launched a private equity fund called Liberty Strategic Capital. The fund focuses on financial services, cybersecurity, and other sectors related to new forms of content and technology. The fund recently raised $2.5 billion, most of it from sovereign wealth funds in the Middle East.
Conclusion
Liberty Strategic Capital has led late-stage funding rounds for cybersecurity firms Cybereason and BlueVoyant. This month, the fund led a $250 million Series D round for BlueVoyant. It also led a $150 million Series E round for Contrast Security. The company develops app security technologies. Its funding puts the company’s valuation at more than $1 billion. The firm also serves as financial advisor to CFV, which is owned by a group of Saudi Arabian and Middle Eastern investors.
