The cybersecurity landscape continues to evolve rapidly, driven by an unprecedented surge in digital transformation and sophisticated cyber threats. The global cost of cybercrime is expected to reach $10.5 trillion annually by 2025, up from $3 trillion in 2015, highlighting the immense financial stakes for organizations worldwide. Compounding this challenge is the acute cybersecurity talent shortage. Traditional approaches are proving insufficient to keep pace with these realities, underscoring the need for advanced, automated solutions. Bricklayer.ai, Blu Ventures’ latest portfolio addition, is tackling these challenges head-on with its cutting-edge AI-driven platform designed to automate critical security operations. By addressing the dual challenges of talent scarcity and growing threat complexity, Bricklayer.ai is well-positioned to revolutionize how organizations defend against cyberattacks.
About Bricklayer.ai
Bricklayer.ai is an innovative cybersecurity company, led by an impressive and seasoned entrepreneur, that specializes in AI-driven solutions designed to automate critical security operations such as incident response, threat intelligence, and security analysis. Leveraging advanced AI technology, Bricklayer.ai aims to enhance the efficiency and effectiveness of security teams by reducing dependency on human analysts and accelerating threat detection and response. With a focus on the U.S. market, Bricklayer.ai is poised to address the growing cybersecurity talent gap and meet the increasing demand for sophisticated, automated security systems.
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We connected with Blu Venture Partners Mike Kostoff and Steven Chen, the deal leads for Bricklayer.ai, to delve deeper into the strategic rationale behind Blu’s decision. The evaluation was guided by Blu’s trusted 5 Ts framework: Team, Total Addressable Market (TAM), Technology, Traction, and Terms.
Team:
Details: Led by Adam Vincent, a seasoned entrepreneur with a track record of scaling cybersecurity firms, Bricklayer.ai benefits from his experience of growing ThreatConnect, Adam’s previous cybersecurity SaaS firm, from $0 to $30M in ARR. His successful exit, which returned $100M in shareholder value, underpins a deep understanding of both the market and the technology.
Strengths: The team’s expertise is complemented by a dedicated product development firm in DC and Romania, Victory Square Partners. This composition indicates a robust capability to develop, market, and scale cutting-edge cybersecurity solutions. Sovereign’s Capital, the lead investor for this round, has spoken with the CEO of Victory Square, and his comment was that “Adam is the most impressive founder he’s worked with” as his ability to manage the product development across many different team members in remote locations. The CEO of Victory Square was so impressed that he is personally investing in Bricklayer.
Risks: The company’s success is heavily reliant on the leadership of its founder. The product has largely been built by Victory Square Partners, albeit with direct leadership and guidance from Adam.
Technology:
Details: Bricklayer.ai develops AI-driven cybersecurity tools that perform functions such as security analysis, threat intelligence, and incident response. Their technology automates security processes that are traditionally dependent on human analysts, thereby enhancing efficiency and reducing the potential for errors.
Strengths: The technology's ability to integrate AI agents autonomously to handle complex security tasks 24/7 positions Bricklayer.ai at the forefront of innovation in cybersecurity. This capability is particularly compelling in an industry where speed and accuracy are critical to defending against cyber threats.
Risks: Dependence on AI technologies involves inherent risks such as potential biases in decision-making processes and the adaptability of AI systems to evolving threats. Moreover, any significant technological failure or flaw that leads to a security breach could severely damage the company’s reputation and customer trust.
Traction:
Details: Bricklayer.ai has demonstrated notable traction by developing a significant pipeline of potential customers and engaging several design partners. The company has already invested over 12 months into product development and engineering, showing a commitment to refining its technology to meet market needs effectively.
Strengths: The company's engagement with design partners indicates that its products are not only in demand but are also being tested and validated within real-world environments. This practical application and testing are crucial for early-stage companies, as it helps refine the product and align it more closely with customer needs.
Current Performance: Bricklayer.ai’s strategic go-to-market approach suggests that the company is gearing up for a broad market launch. Their planned entry into the market is backed by detailed product testing and partnerships, which enhances their potential for rapid customer acquisition and market penetration.
Risks: While Bricklayer.ai shows promising early traction, the risk remains that the transition from a development phase to a full-scale commercial operation could encounter challenges, including slower-than-expected customer adoption or feedback that leads to significant product revisions. Additionally, the reliance on strategic partnerships for market entry could pose risks if these partnerships falter or do not yield the expected results.
TAM:
Details: According to Bricklayer, the global TAM for cybersecurity solutions like those offered by Bricklayer.ai is estimated at $54 billion, with the U.S. market making up $7 billion of the overall market. The demand is driven by a substantial skills gap in cybersecurity, with over 4 million unfilled jobs worldwide, creating a significant opportunity for automation solutions. While these estimates were provided by Bricklayer, the market is large and expanding.
Strengths: The expansive TAM indicates a substantial market waiting to be tapped, with potential for high growth driven by increasing cybersecurity threats and the global shift towards digital solutions. Bricklayer.ai’s focus on AI-driven solutions positions it well to capture a considerable market share.
Risks: Not surprising, there are many AI security companies being funded, and some of those that we are tracking have overlapping capabilities with Bricklayer. Clearly, this will be a quickly evolving and competitive landscape, supported by large amounts of venture capital funding.
Terms:
Details: Bricklayer.ai is actively seeking a $1.5 million pre-seed investment on Convertible Note with $11MM Cap and 20% discount to fund its next stage of growth. This funding round is crucial for scaling operations, accelerating product development, and expanding market reach as they prepare for their go-to-market strategy in Q3 2024.
Use of Proceeds: The investment sought will be utilized to enhance product capabilities, bolster sales and marketing efforts, and refine the technology to ensure it meets the stringent requirements of cybersecurity operations. A portion of the funds will also likely be allocated towards securing and expanding strategic partnerships and possibly entering new markets based on demand and regulatory compliance. Importantly, this funding is being used to hire a CTO, which Adam has a commitment form.
Investment Attractiveness: Given the founder's previous successful exit and the innovative nature of Bricklayer.ai's product offerings, the investment terms are poised to offer significant upside potential. Sovereign's Capital has spoken to a handful of Series A firms that are very interested in what Adam is building and are tracking the company for investment at a future date.
Risks: Investing at this stage carries typical early-stage investment risks, including market acceptance challenges and potential delays in product development or go-to-market execution.
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The investment terms for Bricklayer.ai represent a calculated opportunity for investors to enter at an early stage of a promising cybersecurity startup with a seasoned leadership team and a clear strategic direction. The planned use of the investment funds demonstrates a strong commitment to driving growth and innovation. However, the investment carries inherent risks associated with pre-seed investments in the high-stakes AI cybersecurity industry.
If the investment is approved, we should keep a close watch on the company’s progression towards its Q3 2024 go-to-market target, the evolution of its strategic partnerships, and initial market feedback post-launch to further validate the investment's potential returns and impact.
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