Cyber Security Startup Will Expand and Strengthen Sales, Marketing, and Product Development; Recruit Top Talent; and Bring Network Security-as-a-Service Solution to Market
St. Louis, MO – May 29, 2014 - Observable Networks, an emerging leader of network security technology and advanced threat detection services, today announced it has received $2.45 million in Series A1 funding arranged by DH Capital, an investment banking firm serving companies in the Internet infrastructure, communications, and SaaS sectors. As part of the funding, Observable Networks received additional institutional backing from the Vectis II fund, a prior investor, of which Stifel, Nicolaus & Company, Inc. is a general partner. The cyber security startup will use the investment to expand and strengthen sales, marketing, and the product development of its cloud-based Network Security-as-a-Service offering. As part of its expansion, the company will also recruit top engineering and channel development talent, and bring its innovative security capabilities to broader markets to meet high demand for advanced threat detection services.
"Observable Networks is setting a new standard for IT security monitoring in the cloud age. We have the ability to actively model thousands of devices across complex business networks and critical infrastructure environments, providing our customers with a clear picture of device behaviors on their network," said Bryan Doerr, CEO of Observable Networks. "This new round of funding allows us to expand our algorithmic capabilities and pursue multiple channel opportunities. We are pleased to have such visionary investors who understand the important role innovation plays in meeting today's IT security needs."
Observable Networks recently entered the IT security market, empowering organizations to readily understand normal and abnormal device behaviors on their networks. Observable's continuous device profiling (CDP) technology and cloud-based service platform uses real-time traffic sensors and automated security analytics to continuously model all devices on networks of any size. Observable's solution is indifferent to encryption and does not require recognition of threat signatures.
With no specialized hardware to purchase and no software agents to deploy, Observable's service is available as a cost-effective software-as-a-service (SaaS) subscription, which greatly simplifies and speeds deployment. With scalability ranging from hundreds to millions of devices, it is a crucial threat detector for any organization - providing a significant leap forward to a stronger security posture compared to traditional approaches.
CTO and Founder Dr. Patrick Crowley leads Observable's engineering and software development efforts. Under his guidance, the company has developed CDP technology into a commercial solution and a product line that includes a managed security solution for Enterprise and SMB companies, and an industrial control security system for critical infrastructure and supervisory control and data acquisition (SCADA) networks – such as power generation and distribution.
"Observable Networks is poised for strong growth in the fast growing IT security market. With this investment, they have the necessary resources to expand their market presence into new geographies and industry verticals," said Adam Lewis, partner and managing director at DH Capital.
"Patrick, Bryan, and the team have created a compelling service that we believe is essential for companies who understand the continuously changing nature of IT security," said Joseph Schlafly III, senior vice president and director, private markets at Stifel, Nicolaus & Company.
Including this Series A1 funding, Observable Networks has secured more than $4M to date to develop and enhance its CDP technology and Network Security-as-as-Service offering.
About DH Capital
DH Capital is a private investment banking partnership serving companies in the Internet infrastructure, communications, and SaaS sectors. Headquartered in New York City with offices in Boulder, Colorado, the firm's principals have extensive experience and proven abilities in capital formation, finance, research, business development and operations. DH Capital provides a full range of advisory services to companies and financial institutions, including mergers and acquisitions, private capital placements, financial restructuring, and operational consulting. DH Capital has completed more than 106 M&A transactions and private capital placements totaling more than $8.5 billion in value. For more information on DH Capital, visit their website at www.dhcapital.com
About Vectis II
Vectis Healthcare & Life Sciences Fund, II, L.P. ("Vectis II") is a national life sciences venture capital and private equity fund that employs a hybrid strategy of fund and direct investments. Vectis II invests across all sub-sectors of the healthcare and life sciences industries, including plant sciences, biotechnology, medical technology, healthcare services, and health information technology. Co-headquartered in St. Louis and Boston, the fund's co-General Partners are Stifel, Nicolaus & Company, Incorporated and Brooke Private Equity Associates.
About Observable Networks
Observable Networks, Inc. is an emerging leader of network security technology and advanced threat detection services that identify compromised and misused networked devices currently escaping detection by network security tools. Observable's Continuous Device Profiling (CDP) technology includes a cloud-based service platform incorporating automated security analytics and real-time traffic sensors to continuously model all devices on networks of any size, all the time. CDP is indifferent to encryption and does not use threat signatures. Observable empowers organizations to readily understand normal and abnormal device behaviors in their networks, helping them to identify compromised devices and facilitate faster remediation. Observable Networks is a privately held company headquartered in St. Louis, MO. For more information, please visit www.observable.net