The company will use the investment to drive customer acquisition with accelerated sales and marketing and expand machine learning to enhance its technology enabled service capabilities as it creates a world-class Managed Open XDR solution.
Cleveland, Ohio – November 2, 2022. Binary Defense Systems, Inc., a leading Managed Detection and Response (“MDR”) and enterprise defense provider, announced that it closed a $36 million first institutional growth equity funding round led by Invictus Growth Partners (“Invictus”). Previously bootstrapped, Binary Defense was founded by David Kennedy and Mike Valentine and is trusted by hundreds of customers for their most critical cybersecurity needs. The capital will be used to accelerate sales and marketing, broaden the partner ecosystem, expand machine learning capabilities, and create a world-class Managed Open XDR offering.
Enterprises are under exponentially increasing global cyber threats and there continues to be a shortage of security talent to protect them. MDR services from Binary Defense provide customers with remotely delivered Security Operations Center (“SOC”) functions. These functions allow businesses to quickly detect, analyze, investigate, and respond to cyber threats. According to Gartner, by 2025 the MDR market will reach $2.15 billion in revenue, with a compound annual growth rate of over 20%. MDR growth is skyrocketing as organizations look for help to protect themselves against the evolving and sophisticated threat landscape.
“We are at a unique crossroads in security where the massive market opportunity is converging with Binary Defense’s expertise in technology development and MDR service delivery,” said Bob Meindl, CEO of Binary Defense. “We have built a best-of-the-best leadership team with each member tallying decades of cyber experience. I am excited for the backing and knowledge of the Invictus team, who found us with their own machine learning platform, as we expand our brand awareness and demonstrate our proven cyber defense practice to security leaders across the country.”
“When I started Binary Defense, my vision was to make the world a safer place,” explained Co-Founder and Chief Hacking Officer, David Kennedy. “Over the past several years, we have experienced amazing growth, added experienced cyber leadership, and developed innovative capabilities to advance our defensive maturity. I am extremely excited about this partnership with Invictus because we are one step closer to bringing my vision into reality. John and the team at Invictus are the perfect fit for our vision for the future. We are entering a new era at Binary Defense in helping to make the world a safer place.”
“Binary Defense offers a differentiated value proposition to protect their customers with a proactive, hacker’s mindset,” said John DeLoche, Co-Founder & Managing Partner at Invictus.
“They bring a unique combination of detection technology, cybersecurity experts, and operational best practices to the MDR space. We are thrilled to partner with Bob, the founders, and the entire Binary Defense team to help them achieve their mission.”
“When speaking to their customers, the message is consistent. Binary Defense is a trusted partner with the right portfolio of managed services that provides the most critical cybersecurity capabilities to companies of all sizes. We are delighted to partner with the team and build on their success defending the enterprise from cyber attacks,” said Jeremy Lai, Principal at Invictus.
Stifel Financial Corp. served as exclusive financial advisor to Binary Defense in the transaction.
About Binary Defense
Binary Defense is a managed detection and response provider and software developer with a Managed Open XDR model covering endpoint, network, cloud, and other log sources to supply high-fidelity threat detections. When paired with its advanced Threat Hunting, Digital Risk Protection, Attack Surface Management, and Incident Response services, the company offers a comprehensive enterprise defense portfolio. Binary Defense demonstrates conclusive proof of superior capabilities in detecting intruder activity and this rapid detection combined with expert analysis and response decreases cyber risk for businesses.
About Invictus Growth Partners
Invictus Growth Partners is a growth equity and buyout firm which invests in bootstrapped and capital efficient, automation-enabled cloud software, cybersecurity and fintech companies which seek capital and strategic resources to accelerate their growth. The firm and all their professionals are based in San Francisco.
The company is headquartered in Stow, Ohio at 600 Alpha Parkway. For more information, please contact, David White, VP of Marketing, at David.White@binarydefense.com.