Chevy Chase venture fund New Enterprise Associates upped its bet on ThreatQuotient, a Reston-based cybersecurity analytics start-up, in a $12 million investment announced Tuesday.
ThreatQuotient operates a set of data analytics tools for corporate cybersecurity analysts, meant to help sort through the millions of data points that might predict the next hack. The company was founded in 2013 by two technologists working out of AOL’s Fishbowl Labs incubator in Sterling, Va., and chief executive John Czupak joined in late 2015.
Czupak padded the company’s ranks with connections from his previous 12-year career at SourceFire, a Maryland-based cybersecurity company that sold to software giant Cisco for $2.7 billion in one of the biggest local technology deals in recent memory.
ThreatQuotient got its first big chunk of capital from New Enterprise Associates, an early Sourcefire backer, and Tuesday at least half of ThreatQuotient’s leadership team comes from Czupak’s former employer.
“I’ve been very fortunate that I’ve been able to attract a lot of Sourcefire DNA,” said Czupak.
Before SourceFire, Czupak was a vice president at Riverbed Technologies, a mobile computing company that also got money from New Enterprise Associates before being acquired in 2002. Between Riverbed, Sourcefire, and now ThreatQuotient, the investors at NEA have been working with Czupak his associates for more than 15 years.
“Really what it boils down to is you just don’t get a better team than this. . .that’s why NEA is being so aggressive,” said Harry Weller, a partner at NEA. “These guys have made $4 billion worth of exits for me.”
As part of the deal, NEA managing partner Peter Barris joined the company’s board.
There are dozens of other companies playing in the fast-growing field of cyber-threat analytics, including a local, venture-funded competitor called ThreatConnect.
“It’s a hot new emerging market without any clear leaders,” Czupak said.
Weller said the company is now generating revenues approaching $10 million a year. Czupak declined to disclose company financials but compared the start-up’s early financial performance to that of some industry heavyweights.
“I would compare these numbers to those we saw in the early days at SourceFire, comparable to what we saw in the early days at FireEye,” he said. “It’s a business that’s going to triple in size for the next few years.”