Seattle-based cybersecurity company ExtraHop is eyeing new markets overseas after announcing $100 million in funding on Tuesday.
CEO Greg Clark said the company has a strong product but wants to get it in the hands of more customers. He added that markets in the Asia-Pacific region, Latin America and Western Europe are particularly appealing to ExtraHop, and the company is looking to hire and open offices overseas.
"To get out in international markets, you need people who know how those worlds work," Clark said. "Some of our competitors don't have to deal with us in Germany and Japan, and that's not the natural order."
In 2021, private equity firms Bain Capital Private Equity and Crosspoint Capital Partners acquired ExtraHop for $900 million. Clark, also a co-founder and managing partner at Crosspoint, said the firms raised the money internally to then deploy to ExtraHop. The company expects the funding round to close early this year.
ExtraHop was founded in 2007. The company offers a subset of cybersecurity called network detection and response, which allows organizations to search their networks for bad actors. Its clients include Microsoft and Adobe.
Current Chief Scientist Raja Mukerji founded the company with Jesse Rothstein, previously the company's chief technology officer. Rothstein left the company in July but remains on the board. Clark said Rothstein is still an important part of the company, but his stepping away was part of a natural progression.
Clark replaced previous CEO Patrick Dennis as CEO in October. Dennis had served as ExtraHop's CEO since February 2022. Clark said Dennis did a good job growing the company's revenue and that Dennis remains a great colleague, but Clark has the skills needed to grow the company internationally. Clark has previously held CEO roles at Blue Coat Systems, Symantec and Forescout Technologies.
Dennis replaced former CEO Arif Kareem, who led ExtraHop from 2016 to 2022. Dennis is now a board adviser at the company.
ExtraHop's international expansion plans won't affect its commitment to Seattle. Clark said the company is keeping its Seattle office space, and Seattle will remain the headquarters. The company's total employee count is in the "high 600s," Clark said, and although the company is growing, it doesn't have a specific headcount target for the end of the year.
Clark added that the company is targeting profitable growth rather than growth at all costs, and 2024 will be about building its platform overseas, with 2025 being the real year of expansion.
"When you build a great company, you have a lot of choices," Clark said. "We want to build ExtraHop so an IPO is a really good choice."
