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www.mach37.com
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www.mach37.com
America’s Premier Cybersecurity Accelerator
MACH37 2214 Rock Hill Road, Suite 270
Herndon, VA 20170
MACH37TM is creating the next generation of disruptive
cybersecurity product companies.
• Launched 43 start-ups that are driving innovative security products to market
• Emerging as a best of breed accelerator with demonstrated success in launching investable companies
• Attracting the best seed stage concepts from around the U.S. and 22 other countries
• Growing a mentor network of 200+ cybersecurity leaders
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www.mach37.com MACH37 2214 Rock Hill Road, Suite 270
Herndon, VA 20170
Relationship with CIT and Virginia
• MACH37 is a joint partnership • Virginia commitment
– For initial investment ($50,000), MACH37 companies commit to establishing a significant presence in Virginia within two years (e.g., regional sales presence, government services operation)
– Additional matching funds ($100,000) from the CIT GAP Funds require companies to establish headquarters in Virginia
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MACH37 Emerging with Best of Breed
• Technical founder, solving problems they faced in industry
• 12 of first 17 companies seeded – 70% seed rate tracks
best-of-breed accelerators
– The Fall 2014 Cohort achieved an 85% seed funding rate
– $7.0M in leveraged capital
– 5.0x leverage ratio – Multiple Series A
rounds expected for next 12 months – Will double current
leverage ratio and unrealized ROI
MACH37 2214 Rock Hill Road, Suite 270 Herndon,
VA 20170
MACH37 2214 Rock Hill Road, Suite 270
Herndon, VA 20170 4
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Emerging Global Brand In Cybersecurity Through active thought leadership, MACH37 has emerged as
a leader in the global cybersecurity and technology innovation
dialog - driving high quality deal flow.
MACH37 2214 Rock Hill Road, Suite 270
Herndon, VA 20170 5
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Maturity
Founding Team
Established
Prototype Completed
Initial Seed Round Raised
Beta Deployment
Achieved
Reference Customers Established
Inve
sted
Cap
ital
MACH37 2214 Rock Hill Road, Suite 270
Herndon, VA 20170
Series A Investment
MACH37TM companies continue to mature, achieving critical
market and investor validation.
The MACH37 System Works
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MACH37TM Leadership
MACH37 2214 Rock Hill Road, Suite 270
Herndon, VA 20170
Jason Chen – Chief Executive Officer 15+ years of business stategy. Founder of VentureScope.
Jen O’Daniel – Investment Director Leads cybersecurity investments for MACH37 and CIT. Co-host of Cyberscoop’s Securiosity Podcast. Leads 75+ member angel investing group.
MACH37TM is lead by an experienced team of cybersecurity
entrepreneurs, operators, technologists, and investors.
Tom Weithman – Chief Investment Officer Managing Director of CIT GAP Funds, Board Member, Virginia Tech Intellectual Property Foundation, IBM, Hughs Electronics
David Ihrie– Chief Technology Officer CTO of the Center for Innovative Technology, CTO of the National Technology Alliance, VP of Government Programs for Semandex Networks, principal in five technology startups
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MACH37 Ecosystem
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MACH37 Fall 17 Cohort Overall further along product development and customer engagement
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MACH37 Portfolio
Network & Infrastructure Security Web Security Endpoint
Security
Risk & Compliance
Identity & Access
Management
Threat
Intelligence IOT
Digital Risk
Mgt
Blockchain
Cloud
Security
(Sopho
s) (Silico
m)
(Symante
c)
Security Ops &
IR
Messaging
Security
Fraud & Transaction Security
Security
Consulting MSSP
(CA)
Data Security
(Thycoti
c)
Mobile
Security
(Okta)
Application
Security
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Security Investing
• ~ 4% of overall venture spending • Longer to grow • Smaller exits • Cockroaches not Unicorns
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Security Landscape
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VC Deals by Country
Source: CBInsights
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Venture Capital Investment
$21 Billion across 2,100 deals
Source: CBInsights
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VC Deals – New Players
Source: CBInsights
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VC Deals - Valuations
Source: Pitchbook
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VC Deals - $100M+ deals
Source: CBInsights
Greater valuation = fewer potential acquirers
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Security Companies are Cockroaches not Unicorns
Source: Momentum Cyber
175 M & A transactions in
2017, the median value was
$68 million
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IPOs
Source: Momentum Cyber, Pitchbook
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Security Landscape
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Future Cyber Spending Security Spending by Segment, 2017-2022
(Constant $ Millions) - May 2018
CAGR
2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017-2022
Identity and Access Management
Web Access Management 1,150 1,193 1,239 1,290 1,343 1,401 3.8% 3.8% 3.8% 4.1% 4.1% 4.3% 4.0%
Other Identify Access Management 1,605 1,806 2,025 2,226 2,435 2,695 15.4% 12.6% 12.1% 9.9% 9.4% 10.7% 10.9%
Identity Governance & Administration 1,927 2,096 2,282 2,488 2,719 2,968 8.8% 8.8% 8.9% 9.0% 9.3% 9.1% 9.0%
Total 4,681 5,095 5,546 6,003 6,497 7,064 9.6% 8.8% 8.9% 8.2% 8.2% 8.7% 8.6%
Infrastructure Protection
Endpoint Protection Platform (Enterprise) 4,063 4,161 4,261 4,367 4,474 4,588 2.4% 2.4% 2.4% 2.5% 2.5% 2.5% 2.5%
Other Security Software 5,892 6,405 6,978 7,668 8,387 9,280 9.2% 8.7% 9.0% 9.9% 9.4% 10.6% 9.5%
Secure E-mail Gateway 1,632 1,649 1,664 1,679 1,691 1,712 1.1% 1.0% 0.9% 0.9% 0.7% 1.2% 1.0%
Secure Web Gateway 2,342 2,509 2,690 2,891 3,114 3,339 7.1% 7.1% 7.2% 7.5% 7.7% 7.2% 7.4%
Security Information and Event Mgt (SIEM) 2,363 2,583 2,826 3,099 3,404 3,723 9.0% 9.3% 9.4% 9.6% 9.8% 9.4% 9.5%
Data Loss Prevention 965 1,060 1,166 1,286 1,421 1,558 9.6% 9.9% 10.0% 10.3% 10.5% 9.6% 10.1%
Security Testing 679 775 884 1,010 1,156 1,319 13.9% 14.1% 14.1% 14.3% 14.4% 14.1% 14.2%
Total 17,937 19,141 20,471 22,000 23,647 25,519 6.7% 6.7% 6.9% 7.5% 7.5% 7.9% 7.3%
Network Security Equipment
IPS Equipment 1,199 1,007 937 864 784 709 -19.5% -16.0% -7.0% -7.7% -9.2% -9.6% -10.0%
Firewall Equipment 10,743 11,749 12,737 13,584 14,355 15,133 15.0% 9.4% 8.4% 6.6% 5.7% 5.4% 7.1%
Total 11,942 12,756 13,674 14,448 15,140 15,842 10.3% 6.8% 7.2% 5.7% 4.8% 4.6% 5.8%
Security Services
Consulting 20,743 22,561 24,517 26,568 28,736 31,125 7.4% 8.8% 8.7% 8.4% 8.2% 8.3% 8.5%
Hardware Support 1,613 1,703 1,799 1,896 2,000 2,109 6.1% 5.6% 5.6% 5.4% 5.5% 5.5% 5.5%
Implementation 17,478 18,624 19,821 21,100 22,464 23,940 7.2% 6.6% 6.4% 6.5% 6.5% 6.6% 6.5%
IT Outsourcing 18,689 20,720 23,135 25,809 28,757 32,050 10.8% 10.9% 11.7% 11.6% 11.4% 11.5% 11.4%
Total 58,524 63,608 69,272 75,373 81,956 89,224 8.7% 12.2% 9.0% 8.9% 8.8% 8.9% 9.6%
Consumer 5,225 5,305 5,383 5,464 5,550 5,639 1.4% 1.5% 1.5% 1.5% 1.6% 1.6% 1.5%
Grand Total 98,308 105,905 114,346 123,289 132,790 143,287 7.9% 7.7% 8.0% 7.8% 7.7% 7.9% 7.8%
Source: Gartner
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Identity & Access Management
• $1.7 Billion, 15.5% growth in 2018 • Through 2020, over 50% of IaaS security
failures will result from inadequate customer management of identities, access and privileges
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Web Application Firewalls & Web Security
• Forecasted at $853M in 2018 – DDoS protection – Bot management – CDN – Magecart breech
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Securing OT & IoT
• Significant problem • Data Centers • Bloomberg SuperMicro article
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Weekly Podcast – www.cyberscoop.com
Security news recap
Interview with leading innovators
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Questions
Jen O’Daniel Jennifer.ODaniel@mach37.com Twitter: @DCVCJen
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