Huntress is seeking cybersecurity acquisitions after receiving $40 million in debt financing from CIBC Innovation Banking, the companies revealed today. The current trade valuation of Huntress has not been disclosed.
The new debt funding comes at a time when venture capitalists are rethinking valuations of technology and cybersecurity companies, and short-term IPO windows generally remain closed. In this economic context, Arctic Wolf has also sought debt financing, according to reports.
History of Huntress Cybersecurity activities, MSP and MSSP partnerships
Huntress, founded in 2015, is based in Ellicott City, Maryland. The company has 224 employees registered in the LinkedIn. Huntress’ areas of expertise include managed services, cyber breach detection, malware analysis and incident response. MSP and MSSP partners typically leverage the Huntress platform to protect SMB clients.
Huntress plans to use the new funding for “merger and acquisition opportunities, research, product development and expansion into international markets in Canada, the UK, Europe, Australia and New Zealand. “, said the company.
Recent moves include the acquisition of security awareness training company Curricula for $22 million. Previously, Huntress acquired Endpoint Detection and Response (EDR) security technology from Level Effect in 2021.
Huntress Debt Funding: Management Insights
In a prepared statement on the debt financing, Huntress CEO Kyle Hanslovan said:
“Huntress is growing faster than ever. In a market surrounded by increasingly expensive capital, the CIBC Innovation Banking team understood our needs as a high-growth startup. With their help, we’ve already made a strategic acquisition, launched new managed security products and more. We are delighted that CIBC Innovation Banking supports our vision for the future. This investment will help us continue to innovate as we pursue our mission to protect small and medium-sized businesses.
Added from Huntress CFO Marcos E. Torres:
“We are just beginning to implement our build-and-buy strategy to help companies strengthen their preventive security efforts. With our level of maturity in M&A and deal structuring, we will continue to acquire and develop assets that solve our partners’ business and technical challenges. »
Paul Gibson, Managing Director of the Reston, Virginia office of CIBC Innovation Banking, concluded:
“The Huntress team continues to drive strong growth across North America and is on its way to becoming an international market leader in helping small and medium businesses meet their security needs. Our team looks forward to assisting Huntress with the capital needed to fuel this growth.
Huntress: previous venture capital funding
Huntress previously raised $40 million in Series B funding in May 2021 and $18 million in Series A funding in February 2020. The company’s existing investors include JMI Equity, Forgepoint Capital and Gula Tech Adventures.