A Lakeland-based startup that uses humor and psychology to fight cyber threats has closed a $5.5 million funding round.
Hook Security announced the raise Monday morning. The oversubscribed round was led by TampaBay.Ventures, with participation from Orlando-based DeepWork Capital and Colorado-based Stout Street Capital.
“It certainly took a little longer than we thought it would, but we’re in the fastest-growing segment within cyber,” said Zachary Eikenberry, Hook Security CEO. “Whatever larger macro headwinds may be coming, we’re not seeing that on the ground. All we’re seeing are tailwinds; we’re still enjoying an industry-leading growth rate.”
Hook Security uses psychologists to help with its programming, which brings “edutainment,” or entertainment and education, to the users. The “Saturday Night Live”-type videos teach users ways to recognize threats and learn how their behavior contributes to the company's overall safety.
This is the second investment for Hook Security from locally based TampaBay.Ventures; in July 2022, the firm gave Hook Security an undisclosed amount. Eikenberry said the capital was raised as an early part of the round, which was initially intended as a $5 million round.
“At Tampa Bay.Ventures, we view cybersecurity as a critical infrastructure for the future of any company,” said Andreas Calabrese, general partner at Tampa Bay.Ventures, in a statement. “We believe that Hook Security’s proprietary methods ... represent the future of the industry and offer a unique approach to fighting cybercrime.”
The funding will help fuel Hook as it continues to grow its sales system and product. Eikenberry also plans to expand his 21-person team, adding 10 to 15 new employees by the end of the year.
He expects to raise a Series A round in 2024. He added in the future, he will use funding rounds as a necessary means to hit company milestones versus raising funds just because he can.
“I’m pretty excited in this season of venture capital, we were able to get a fully subscribed round,” Eikenberry said. “And incredibly excited to grow locally and very excited to take our message out to the greater world.”
