Year invested: 2023
Sector: Cyber security (managed detection and response)
Deepwatch is a leading provider of advanced managed detection & response (“MDR”), vulnerability management, as well as network and endpoint management technology and solutions. The Company provides outsourced monitoring and management of security software and systems, using high-availability security operation centers designed to reduce the number of operational security personnel an enterprise needs to hire, train, and retain to maintain a best-in-class security posture. The Company serves the Fortune 2000 and has hundreds of customers, from Fortune 100 to mid-sized enterprises. Deepwatch is based in Herndon, VA with security operation centers in Denver, CO and Tampa, FL.
We believe that Deepwatch’s offering is highly differentiated given (i) the Company’s product focus, supporting a limited set of best-in-class applications which ensures operational focus and consistent service delivery, (ii) its focus on mid- to large enterprise customers who require a different level of service quality than SMBs, and (iii) the Company’s proprietary, consolidated cloud portal which creates demonstrable ROI and stickiness. We believe that the addressable market for Deepwatch’s core MDR offering is poised to grow, with secular demand driven by an ever-evolving threat landscape, staffing and skill shortages, an increasing compliance burden, and the benefits to simplifying technology stacks. Gartner estimates that by 2025, 50% of organizations will be using MDR services for threat monitoring, detection, and response functions, up from 25% today.
We are excited to support Deepwatch in diversifying its channel-driven go-to-market motion, investing in all areas of product, customer service and support, and further expanding its leadership position as the MDR platform for the enterprise.