2023 proved to be a difficult year on the ransomware front after a brief lull in 2022. According According to data from cryptocurrency tracking firm Chainalysis, victims had paid ransomware groups more than $400 million in total since July 2023. Statista, meanwhile, References that a whopping 72% of businesses have been affected by ransomware attacks by 2023.
So it’s no surprise that despite the broader decline in VC cyber investment, anti-ransomware platforms are still considered a wise investment. Per Mordor Intelligence, the ransomware protection software market could grow by 15% over the next five years.
Sure, a seller, Kingfisher, is experiencing a boon, having raised $44 million in a Series A round last April. The startup has now closed a smaller Series B tranche — $40 million — bringing its total to $84 million.
Co-founder and CEO Jon Miller said Halcyon didn’t need to raise again so soon, but saw value in partnering with new VCs, particularly Bain Capital Ventures (which led the Series B).
“This latest round will help us acquire and retain critical engineering talent to expand our product lines, enhance and develop our service offerings, and strengthen our sales and marketing efforts to gain traction in a crowded industry Miller told TechCrunch in an email interview. “In short, the funds will be used to accelerate development in all aspects.”
Miller and Ryan Smith co-launched Halcyon several years ago after stints at companies that were later acquired by Blackberry (Cylance) and Optiv (Accuvant). Today, Halcyon offers a range of tools designed to combat ransomware attacks, including tamper protections, anti-intrusion software and what Miller calls “hardware capture.”
Miller claims that, in part by tapping trained AI models, Halcyon can disrupt ransomware attacks and in some cases even decrypt devices affected by attacks.
“The Halcyon platform is built to keep businesses up and running even in the event of a widespread ransomware incident,” Miller said. “Typically, detection and prevention logic updates are manual and run monthly — or even quarterly. This is a very cumbersome and rare process to keep up with attackers in a dynamic and ever-evolving threat landscape. Halcyon provides a standalone solution that continuously corrects against a false negative within minutes.”
Miller certainly talks a big game. But Halcyon has customers to show for it, to be fair. The startup now counts more than 100 “enterprise-level” brands as customers in addition to “state-level” school districts, Miller says.
But what about the competition? After all, many vendors — from startups to incumbents — sell anti-ransomware solutions. Miller’s response? Not really — mostly because he believes Halcyon’s unique focus on prevention and recovery sets it apart from the crowd.
“Halcyon is the only company focused solely on fighting ransomware with layers for both prevention and resilience,” Miller said. “Unlike most industry incumbents who simply repurpose anti-malware solutions, Halcyon was designed from day one to defeat ransomware, and the company’s singular focus on this problem makes them significantly more effective in combating it” .
Should Halcyon’s good fortune continue, the company plans to double its workforce of 75 by the end of 2024.
