Deepwatch, a Top 250 MSSP and spin-out from GuidePoint Security, has received a $53 million Series B investment led by Goldman Sachs. The company will use the investment to accelerate research and development of its cloud security platform, drive go-to-market growth and expand its partner ecosystem, according to a prepared statement.
Organizations can use Deepwatch's managed security services to protect their networks and systems against cyberattacks, the company said. These services include:
- Managed Detection & Response (MDR): Provides threat monitoring, alerting, validation and hunting.
- Managed Endpoint Detection & Response (MEDR): Leverages endpoint detection technologies in combination with Deepwatch's platform.
- Vulnerability Management: Measures an organization’s assets, threats and vulnerabilities, offers security insights and responds to exploits.
Endpoint security solutions provider Cybereason in August launched an MEDR service in conjunction with Deepwatch. Also, Deepwatch previously raised $23 million in Series A funding.
MDR Funding on the Rise
Deepwatch's Series B investment announcement comes after several MDR providers recently have received financing, including:
- Blackpoint Cyber: Added Series B funding in August; the company did not disclose how much financing it received at this time.
- GoSecure: Raised $20 million in Series E funding in July.
- Huntress Labs: Secured $18 million in Series A funding in February.
MDR revenues continued to grow in the second quarter of 2020, in spite of the coronavirus (COVID-19) pandemic, according to F-Secure CEO Samu Konttinen. Meanwhile, the global MDR solutions market is projected to expand at a compound annual growth rate of 16.4 percent between 2020 and 2024, with revenues expected to reach $1.9 billion by 2024, industry analyst Frost & Sullivan indicated.
