Technology news and discussion on TalkFuse.
Former Secret Service agent Stephen Ward raises second cybersecurity fund
Former Secret Service agent Stephen Ward is raising a second cybersecurity fund, targeting roughly $250 million, the same size as Brightmind Partners’ debut fund. The move puts him in charge as sole general partner after co-founder Gur Talpaz and another early colleague left, and comes as early-stage cybersecurity firms attract more investment than later-stage rivals for the first time in over a decade.
Ward says investors should plan to sell companies as they grow, rather than assume every one will reach an IPO. A notable early result for Brightmind was its investment in identity security startup SGNL: CrowdStrike agreed to acquire it for $740 million, 11 months after Brightmind led its Series A. Before investing, Ward served in the Coast Guard and Secret Service, then held chief information security officer roles at TIAA and Home Depot.
In short
- Ward is targeting about $250 million for his second cybersecurity fund.
- He is raising it alone after his co-founder left.
- Brightmind backed SGNL before CrowdStrike agreed to a $740 million acquisition.
Explained simply
Cybersecurity companies make tools to protect computer systems, networks and data from attacks. They can need years of investment to develop and sell their products, so specialist funds back them while they grow, often taking a stake in return.
Stephen Ward is an investor who previously served in the Coast Guard and Secret Service and led cybersecurity work at TIAA and Home Depot. He co-founded Brightmind Partners, a fund focused on early-stage cybersecurity firms; its first fund invested in identity security startup SGNL.
Investors in these funds look for companies that may grow in value and eventually be sold or listed on a stock market. Ward has said a sale can be a planned outcome, rather than every company being expected to reach an initial public offering, or IPO.
Read the full article at the source →
Originally published by TechCrunch as “He arrested a hacker, then spent 18 months clearing his own name. Now he’s a cybersecurity VC.”.