SimSpace, a Boston-based cybersecurity company specializing in realistic and intelligent cyber ranges, has secured $39 million in new funding through a combination of debt and equity. The round includes participation from new investors BTG Pactual U.S. Private Credit Investments and Communitas Capital, as well as existing backer L2 Point Management. The investment will accelerate SimSpace’s mission to enhance cyber readiness across government agencies, enterprises, and academic institutions facing increasingly AI-powered threats.
The funding comes at a pivotal time for the cybersecurity industry as adversaries adopt agentic AI systems to execute more advanced and frequent attacks. SimSpace’s platform enables organizations to simulate real-world cyberattacks, train teams and AI agents, and validate security tools and workflows in a controlled yet highly realistic environment. The company positions its cyber range as an essential evolution beyond traditional training programs or compliance-driven testing.
Founded in 2015 by experts from U.S. Cyber Command and MIT Lincoln Laboratory, SimSpace was built on the premise that cyber defense requires constant rehearsal, feedback, and adaptation. Its digital environments replicate an organization’s production systems, allowing customers to test their technologies and personnel against sophisticated threat scenarios. The company’s platform supports several mission-critical use cases, including AI model training and validation, live-fire team exercises, and security tool optimization.
By leveraging SimSpace’s simulations, clients can measure and improve operational performance while reducing costs and risks. Internal data from SimSpace customers show significant results, including 30% reductions in cybersecurity operational costs, 40% fewer patch-related breaches, and nearly 50% faster breach detection times. The company’s approach also provides measurable improvements in defensive response times and detection accuracy, helping organizations validate the effectiveness of both human and AI defenders.
The latest round of funding will support SimSpace’s global expansion and product innovation, particularly as demand grows from federal and state governments, large universities, and Fortune 100 enterprises. The company plans to expand its suite of AI-driven validation tools and develop new use cases to strengthen readiness against AI-enabled threats.
SimSpace’s platform has become increasingly critical as enterprises transition from compliance-based training to continuous, high-fidelity cyber readiness. The company aims to equip its clients to test, validate, and improve both human and AI agents—ultimately ensuring resilience against evolving digital adversaries.
KEY QUOTES
“The cybersecurity landscape has shifted radically as adversaries are weaponizing agentic AI to perform increasingly sophisticated attacks. It’s time to prepare teams in a realistic, intelligent cyber range where they can test their preparedness against live-fire attacks and validate their agentic workflows.”
Peter Lee, CEO, SimSpace
“SimSpace is operating at the frontier of cyber defense innovation. The company’s realistic cyber ranges and AI-driven training match the urgency of the threat landscape we face today.”
Tom Glocer, Co-founder and General Partner, Communitas Capital
“With its cutting-edge cyber range platform, SimSpace addresses the evolving threats in cybersecurity and equips organizations with the scalability and realism they’ve likely never had before.”
Thomas J. Steiglehner, Head of U.S. Private Credit Investments, BTG Pactual
