Baltimore-based ABS Capital, an existing investor in Deepwatch, has joined a $180 million funding round for the Tampa, Fla.-based cybersecurity firm that has previously raised $76 million.
Other investors in the equity investment and strategic financing round included Springcoast Capital Partners (New York), Splunk Ventures and Vista Credit Partners (New York), a subsidiary of Vista Equity Partners. Deepwatch’s previous funding round was a Series B worth $53 million, led by Goldman Sachs, in 2020.
“Deepwatch has developed an innovative security operations platform as evidenced by its very impressive growth and momentum,” ABS Capital’s managing partner Michael Avon said, when the firm led the Series A for Deepwatch in 2019. “We look forward to partnering with Deepwatch as it continues to disrupt and redefine the modern managed security services industry.”
“Our services have never been more vital,” said Deepwatch CEO Charlie Thomas, who is based in Washington, D.C., after the latest funding round. “Business transformation to cloud and digital, coupled with increasing levels of cyber risk drives strong demand for advanced protection from Deepwatch.” Last year Deepwatch doubled sales on the back of new offerings, as more than two-thirds of its customers bought more services.
Thomas has previously led and grown four startups to market values ranging up to over $1 billion, and taken one to an IPO, according to his profile on Deepwatch. He served as the CEO of Razorsight, a maker of cloud-based predictive analytics software, for a decade starting 2005, before its acquisition by Synchronoss Technologies. Thomas has served as a board member or investor at 14 cybersecurity, software and technology companies. He received a B.A. from the University of Virginia and attended Georgetown University’s McDonough School of Business.
Holger Staude, managing partner of New York-based Springcoast Capital Partners, will join Deepwatch’s board of directors. He called Deepwatch an emerging market leader in managed detection and response security at the enterprise level.
ABS Has Raised over $2B
Commercial Real Estate
MacKenzie Companies
Advertising / Media / Communications / Public Relations
Nevins & Associates
Financial Services / Investment Firms
Chesapeake Corporate Advisors
Commercial Real Estate
Monday Properties
Venture Capital
Blue Delta Capital Partners
Internet / Technology
Foxtrot Media
ABS Capital was founded in 1990 by Don Hebb, former CEO of Alex.Brown, and Tim Weglicki with $20 million in committed capital from Alex. Brown. Today, under chairman Phil Clough and managing partner Mike Avon, it prides itself on a “roll-up-your-sleeves” culture, blue-collar work ethic and active business building. It has raised over $2 billion from investors, and made about 100 portfolio investments, mostly in software and tech-enabled B2B businesses. In 2022, ABS Capital’s three portfolio investments were: software maker HSP Group, marketing management platform Cordial and smart mobility firm Beep.
Clough joined ABS in 2001 and has led or been part of a team for over 20 investments across fintech, edtech, ecommerce and business services. He was previously president and CEO of SITEL Corp., and has also worked in the Investment Banking Group at Alex.Brown & Sons. A former US Army officer, Clough is a trustee of Johns Hopkins Health System.
Avon, who is based at the firm’s office in Washington, D.C., joined ABS in 2015 and focuses on investments in cybersecurity, fintech, marketing/ecommerce and education. He has previously worked for Columbia Capital, and founded ICX Media, a data-as-a service company, and Millennial Media, a mobile marketing and data company.
