Cybersecurity startup Huntress raises $150M in Series D funding; doubles its valuation to over $1.5 billion

Cybersecurity startup Huntress has secured $150 million in Series D funding to secure IT infrastructure and bolster security for small businesses and the service providers that support them. The round, led by Kleiner Perkins, Meritech Capital, and existing investor Sapphire Ventures, more than doubles Huntress’ valuation beyond $1.5 billion.

The latest valuation, a substantial increase from its previous valuation in May 2023, makes Huntress a member of the highly coveted unicorn startups club.

The Columbia, Maryland-based Huntress will use the fresh capital infusion to advance its research in edge endpoint, identity, cloud, and SaaS security, along with strategic acquisitions aimed at strengthening the security of critical businesses that form the backbone of the global economy.

Huntress’ impressive trajectory of growth is underscored by its over 70% year-over-year revenue growth over the past two years. The company has also consistently earned top industry accolades, being named the industry leader in endpoint detection and response for eight consecutive seasons and in managed detection and response by G2 earlier this year. These achievements highlight the high demand for Huntress’ products and services, positioning the company on the brink of reaching $100 million in annual recurring revenue (ARR) and protecting nearly 3.5 million endpoints and identities.

Co-founder and CEO Kyle Hanslovan, a former cyber operator at the National Security Agency and Air Force veteran, said that the capital raise is a strategic move to “escalate the arms race against cybercriminals.” He noted that while an initial public offering (IPO) could be a future consideration, the current focus is on expanding the platform’s product offerings.

The growing trend of remote work has accelerated businesses’ digitization efforts, particularly in securing their networks against cyber threats, thereby driving the demand for cybersecurity solutions. Huntress specifically targets “underserved and under-protected” small and mid-market companies, as most cybersecurity products are designed for larger enterprises.

“Huntress is not cybersecurity for the Fortune 500; we’re cybersecurity for the Fortune 5,000,000,” Hanslovan told Reuters.

Founded in 2015, Huntress aims to provide top-tier cybersecurity technology managed by experts at an affordable cost, scalable for any business size. With over 100,000 customers, the company believes it has only “scratched the surface” of its potential, according to Kleiner Perkins partner Everett Randle.

Sharing his enthusiasm for the future, Hanslovan said, “Everyone deserves the ability to protect themselves and their employees’ livelihoods. This is the ‘why’ that supercharges my team to work around the clock and democratize access to the tools and talent typically built for the enterprise. I’m pumped to double down with Sapphire and add two high-caliber firms, Kleiner Perkins and Meritech Capital, to the fight. This capital will directly help us continue wrecking hackers and elevating the world’s critical businesses and their managed service provider allies.”

Huntress Team (Credit: Huntress)