It's raining money in the D.C. cybersecurity scene.
Fulton, Md.-based RackTop Systems has closed a $15 million Series A round to boost its data storage and security platform.
The financing comes from a who's who of local investment groups. It was led by Virginia-based Razor’s Edge Ventures and Grotech Ventures, with participation from Maryland Venture Fund, Vienna's Blu Venture Investors and Maryland's Gula Tech Adventures.
RackTop was founded in 2010 by veterans of the U.S. intelligence community and has amassed clients in the public sector as well as in media, advertising, financial services, healthcare and life sciences. Its flagship product, BrickStor, protects sensitive data from cyber attacks while meeting internal and regulatory compliance requirements.
“It is costly and complex for enterprises to meet the rising challenges of both storing and managing large data volumes, while at the same time addressing expanding compliance requirements and attempting to protect data from persistent cyber threats,” co-founder and CEO Eric Bednash said in a statement. “Our product fuses data storage with cybersecurity to create a unique platform that solves these challenges inherently without added complexity or cost beyond that of legacy storage products alone.”
The Series A funding round will enable RackTop to accelerate near-term sales channels and product development expansion, the company said in a statement.
RackTop is becoming a big fish, but the pond is enormous.
The network-attached storage market is expected to be worth $45.21 billion by 2023, growing at a compound annual growth rate of 20.1 percent, according to MarketsandMarkets, and cyber threats are projected to cost $2 trillion globally in 2019. Beyond that, regulatory security compliance costs companies an average $3.5 million per year, according to Ponemon Institute, which has increased following Europe's GDPR guidelines.
“RackTop represents the next generation of cyber solutions, and we’re impressed with RackTop’s track record and its innovative spirit in solving the most pressing storage and security problems for enterprises,” said Ron Gula, principal of Gula Tech Adventures and former CEO of Tenable, in a statement. “With its deep roots serving the DoD and U.S. intelligence community, RackTop has a proven track record of developing innovative and market-leading security technologies for easily dealing with emerging cyber threats.”
