Why We Invested in ThreatMate

Why We Invested in ThreatMate

The cybersecurity landscape is facing a critical evolution, particularly for small to medium-sized businesses (SMBs) that are increasingly vulnerable and require robust cyber risk governance and attack surface management. Traditional cybersecurity measures often fall short in providing adequate protection and prevention, leaving these businesses exposed. 

ThreatMate addresses these challenges by offering a comprehensive platform tailored for SMBs and delivered through Managed Service Providers (MSPs).  This focus on MSPs is strategic because it allows Threatmate to scale efficiently; rather than selling to numerous individual SMBs, they can reach a large number of them through a single MSP partner.

About ThreatMate

ThreatMate has developed a platform that provides attack surface management and cyber risk governance, specifically designed for the SMB market and delivered through MSPs. The platform offers a range of capabilities, including vulnerability scanning, penetration testing, cloud security configuration assessment, and AI/ML-driven mission plans to remediate security exposures. By focusing on MSPs, ThreatMate enables these providers to offer enhanced cybersecurity services to their clients, improving the security posture of SMBs and creating new revenue opportunities for MSPs.   

Inside Look at Blu’s 5 Ts for ThreatMate

Team

ThreatMate boasts an experienced founding team of Anup Ghosh, Mike Phelan, and Stanimir Ivanov. Anup Ghosh was the founding CEO of Invincea and Mike Phelan the founding CEO of  SevOne - both companies attained 9-figure exits. The team's prior success and cybersecurity expertise provide a solid foundation for ThreatMate's growth.  

Total Addressable Market (TAM)

The global cybersecurity market is substantial, with projections reaching $1.5 trillion to $2.0 trillion. “This opportunity represents an extremely large market as only 50% of MSPs currently offer vulnerability management and there are 40,000 MSPs in North America” Mike Kostoff noted. ThreatMate focuses on the vendor service in the SMB segment, which has a growing need for cyber insurance and cyber risk governance, driving the demand for attack surface management solutions. ThreatMate estimates an initial TAM of $18 billion, which is promising.

Technology: 

ThreatMate's technology offers a comprehensive attack surface management solution with AI/ML-generated mission plans to efficiently close security exposures. The platform consolidates multiple security tools, providing MSPs with a single and efficient solution to manage their clients' cybersecurity needs. Mike Kostoff noted, “ThreatMate's value proposition is to help MSPs become more differentiated, profitable, and secure providers by offering a simple and more affordable approach to cybersecurity.” ThreatMate's technology is designed to be better, faster, and cheaper than current approaches, with easy implementation. 

Traction

Since its platform launch in November 2023, ThreatMate has demonstrated significant traction, acquiring new customers, monitoring numerous domains and users, and discovering a substantial number of vulnerabilities. “We are excited to see ThreatMate utilizing a channel approach when selling its product to MSPs and believe there is significant opportunity to win new contracts quickly,” Mike Kostoff detailed. The company has secured key partnerships with large MSPs and is effectively displacing competitors in the space.  ThreatMate has shown meaningful traction on outbound leads, particularly after their first conference exhibit in June 2024. 

Terms

The investment terms reflect a strong opportunity for growth, with the funding aimed at scaling ThreatMate's go-to-market strategy and expanding its reach within the MSP market.  The Seed Round fundraise is set at $4M, with Top Down Ventures leading the round. “This round offers an attractive opportunity for investors to support ThreatMate at an early stage and help them expand in a rapidly growing market,” Mike Kostoff said.

In conclusion, ThreatMate's experienced team, large and growing TAM, innovative technology, early traction, and favorable investment terms make it a compelling investment for Blu Ventures.