Minneapolis, Minn., Oct. 5, 2022 — NetSPI, a pacesetter in enterprise penetration testing and assault floor administration, right this moment introduced that international funding agency KKR is growing its funding within the firm with $410 million in new funding. The expansion funding validates NetSPI’s vital outperformance since KKR’s preliminary funding in Might 2021 and can assist NetSPI’s continued know-how innovation, expertise acquisition, and international growth, in addition to recapitalizing NetSPI’s first institutional investor Sunstone Companions.
Enterprises depend on NetSPI’s complete suite of offensive safety options — Assault Floor Administration, Penetration Testing as a Service (PTaaS), and Breach and Assault Simulation — to uncover essential safety gaps, reduce danger, and scale back the chance of a safety incident. Based in 2001, NetSPI leverages its ‘know-how powered, human delivered’ penetration testing strategy to enhance the safety of organizations globally, together with the highest monetary establishments, largest cloud suppliers, main healthcare organizations, and lots of the Fortune 500.
“We’re excited to double down on our funding in NetSPI to assist construct a differentiated chief in offensive cyber safety,” mentioned Jake Heller, Companion and Head of KKR’s Know-how Progress workforce within the Americas. “We have now been very impressed by the efficiency of the corporate and the distinctive execution by Aaron and his workforce over the previous 18 months. We imagine that is only the start of what we will accomplish collectively.”
“We’re each grateful and pleased with the trade disruption we drove throughout our partnership with Sunstone Companions,” mentioned Aaron Shilts, CEO at NetSPI. “As we look ahead to this subsequent chapter, NetSPI will proceed to problem the established order in offensive safety. With KKR’s assist, we’re nicely positioned to amplify our success constructing the most effective groups, growing new applied sciences, and delivering excellence, in order that the world’s most outstanding organizations can innovate with confidence.”
NetSPI has constantly outpaced development forecasts. Over the previous 5 years, the corporate has grown its income five-fold, exceeding 50 % natural income development in 2021 and 61 % development in 2022 to this point. Key development drivers embody:
· NetSPI’s Penetration Testing as a Service (PTaaS) supply mannequin, the place human ingenuity and novel applied sciences intersect to create constant, scalable, and environment friendly pentesting outcomes.
· The acquisition of Silent Break Safety, which added extra offensive testing experience and expertise depth, together with progressive applied sciences which have expanded NetSPI’s international choices.
· The introduction of Assault Floor Administration
to determine and shield the unknown with steady penetration testing and guide publicity triaging.
· The NetSPI College coaching program which allows NetSPI to develop the following technology of cybersecurity expertise via formal curriculum and hands-on labs and mentorship, leading to probably the most complete coaching and certification program in safety testing.
· Steady development and innovation throughout all three know-how platforms — ASM, Resolve, and AttackSim — to allow groups to ship extra accessible and impactful outcomes.
· Establishing sturdy groups in Canada, EMEA, and India as key element of the corporate’s international growth efforts.
· NetSPI’s skill to recruit and retain prime trade expertise. The corporate lately reached the milestone of greater than 400 offensive safety professionals globally.
“NetSPI continues its trajectory of sturdy, and accelerating, natural development and profitability and we’re excited in regards to the alternative to proceed this momentum with additional investments in know-how, folks, geographical growth and strategic acquisitions,” mentioned Ben Pederson, a Director on KKR’s Know-how Progress workforce. “Penetration testing is an more and more essential and strategic facet to any enterprise’s safety posture and we imagine NetSPI is a category-defining participant within the area via their best-in-class know-how and PTaaS supply mannequin. We look ahead to supporting NetSPI’s continued development on a world scale.”
“Following our funding in 2017, we’ve had the pleasure of working intently with NetSPI’s workforce as the corporate advanced and established itself because the high-growth, worthwhile safety chief it’s right this moment,” mentioned Gustavo Alberelli, Сo-Founder & Managing Companion at Sunstone Companions. “This transaction demonstrates that even throughout these turbulent instances cybersecurity market leaders comparable to NetSPI will stay extremely useful — particularly these offering mission-critical options to international enterprise clients. We’ve loved having KKR as co-investors since 2021 and look ahead to watching NetSPI’s continued success sooner or later.”
This funding follows NetSPI’s most up-to-date $90 million funding spherical from KKR and cybersecurity specialist investor Ten Eleven Ventures and comes from KKR’s Know-how Progress technique, which is devoted to development fairness funding alternatives in main high-growth know-how corporations in North America, Europe and Israel.
The transaction will shut by the tip of 2022, topic to customary regulatory approvals. Goodwin Procter LLP suggested NetSPI on the transaction and Latham & Watkins LLP suggested KKR.
About NetSPI
NetSPI is the chief in enterprise penetration testing and assault floor administration. At the moment, NetSPI provides probably the most complete suite of offensive safety options — assault floor administration, penetration testing as a service, and breach and assault simulation. Via a mixture of know-how innovation and human ingenuity we assist organizations uncover, prioritize, and remediate safety vulnerabilities. For over 20 years, NetSPI’s international cybersecurity specialists have been dedicated to securing the world’s most outstanding organizations, together with 9 of the highest 10 U.S. banks, three of the 5 largest healthcare corporations, the main cloud suppliers, and lots of the Fortune® 500. NetSPI is a KKR and Ten Eleven Ventures portfolio firm and is headquartered in Minneapolis, MN, with international places of work throughout the U.S., Canada, the UK, and India. For extra info, go to www.netspi.com or comply with us on LinkedIn or Twitter.
About KKR
KKR is a number one international funding agency that provides various asset administration in addition to capital markets and insurance coverage options. KKR goals to generate enticing funding returns by following a affected person and disciplined funding strategy, using world-class folks, and supporting development in its portfolio corporations and communities. KKR sponsors funding funds that put money into personal fairness, credit score and actual belongings and has strategic companions that handle hedge funds. KKR’s insurance coverage subsidiaries provide retirement, life and reinsurance merchandise underneath the administration of International Atlantic Monetary Group. References to KKR’s investments might embody the actions of its sponsored funds and insurance coverage subsidiaries. For extra details about KKR & Co. Inc. (NYSE: KKR), please go to KKR’s web site at www.kkr.com and on Twitter @KKR_Co.
About Sunstone Companions
Sunstone Companions is a growth-oriented personal fairness agency that makes majority and minority investments in technology-enabled companies and software program companies. Not too long ago acknowledged as certainly one of Inc.’s 50 founder-friendly personal fairness companies for entrepreneurs, the agency seeks to accomplice with distinctive administration groups, usually as their first institutional capital accomplice, to assist speed up natural development and fund acquisitions. Based in 2015, the agency has $1.7 Billion of dedicated capital. For extra info, go to www.sunstonepartners.com.
