Managed Security Services Company deepwatch Raises $53 Million

By Noah Long ● October 13, 2020
  • deepwatch — a leading provider of intelligence-driven managed security services — announced it has closed a $53 million Series B investment

deepwatch — a leading provider of intelligence-driven managed security services — announced it has closed a $53 million Series B investment led by Goldman Sachs with participation from existing investor ABS Capital Partners. And as part of the investment, Goldman Sachs Growth managing director Holger Staude will join the Board.

The proceeds from the investment will be used to accelerate R&D of the company’s innovative cloud security platform. And the funding will also drive continued go-to-market growth and expansion of deepwatch’s partner ecosystem.

How does deepwatch work? deepwatch delivers managed security services by extending customers’ cybersecurity teams and proactively advancing their SecOps maturity. And the acceleration of digital transformation and migration to the cloud coupled with rapid and constant changes in the threat landscape places considerable security risk on companies.

These factors combined with the global shortage of cybersecurity experts to help companies manage these challenges has been driving demand for outsourced security operations — which is a $25 billion market today and expected to more than double to over $50 billion by 2025.

KEY QUOTES:

“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.”

— Charlie Thomas, CEO of deepwatch

“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. Holger and I look forward to helping deepwatch capitalize on the significant market opportunity.”

— Morgan Gerlak of Goldman Sachs Growth