In a digital age where cyber threats loom large, Richard Seewald and Evolution Equity Partners stand at the forefront of cybersecurity investment, dedicated to protecting what matters most. With a rich history of success stories and a strategic vision for the future, Seewald’s leadership and Evolution’s robust investment playbook have cemented their place as leaders in the cybersecurity domain.
The Evolution Equity Playbook
Seewald’s journey began over 25 years ago, with the founding of a cybersecurity company that would eventually go public on the New York Stock Exchange. This experience laid the foundation for Evolution Equity Partners, which has since raised four funds and invested in over 60 cybersecurity companies. Their latest fund, a $1.1 billion investment, is the largest dedicated cybersecurity fund globally.
“Evolution Equity Partners is a growth and early growth stage investor entirely focused on the cybersecurity space and adjacent markets,” Seewald explains. “We’ve developed a playbook specific to the cybersecurity space that guides our investments in key categories that every company addresses, from marketing and sales to technology and M&A strategy.”
This playbook, honed over decades, provides Evolution’s portfolio companies with a strategic advantage. By sitting on the boards of directors and integrating companies into their centers of excellence, Evolution ensures that each investment is supported by a robust framework designed to drive growth and resilience.
“Our playbook is a collection of insights, experiences, and lessons learned from building a cybersecurity company from the ground up. It’s about understanding the nuances of the market and the unique challenges that cybersecurity companies face,” Seewald elaborates. “This allows us to help companies navigate those challenges and achieve success.”
Investment Strategy and Success Stories
Seewald’s investment strategy is multi-faceted, focusing on great teams, solid technology within different stages, and large markets. This approach has led to numerous success stories. For instance, Carbon Black, a market leader in next-generation endpoint security, was taken public on the New York Stock Exchange. Security Scorecard, another portfolio company, has grown into a global leader in cybersecurity ratings, continuously monitoring over twelve million companies across 64 countries.
“We’ve invested in companies like Carbon Black, Arctic Wolf, and Security Scorecard. These are well-known names in cybersecurity, as well as younger companies that start off early and grow into sizable businesses,” Seewald notes. “We write tickets up to $100 million per company, providing diversified exposure to a hard-to-access category.”
One of Evolution’s notable investments is in Arctic Wolf, a leader in managed detection and response services for midsize companies. “Arctic Wolf went from zero to multi-billion in value, addressing a critical gap in the market for high-quality cybersecurity solutions tailored to midsize enterprises,” Seewald says. “This demonstrates the potential for substantial growth in underserved market segments.”
Addressing Modern Cybersecurity Challenges
Seewald is acutely aware of the evolving nature of cybersecurity threats and the need for continuous innovation. “The biggest area of growth for our companies is automation in the cybersecurity space,” he says. “With a global shortage of cybersecurity professionals, automating capabilities and driving further ROI in the cybersecurity infrastructure stack is crucial.”
Machine learning and AI play significant roles in Evolution’s investment strategy. Seewald emphasizes the importance of these technologies in enhancing detection, response, and cost savings for organizations. “We’re investing in companies that use machine learning and AI to bring efficiencies to security operations centers, automate threat detection, and improve cybersecurity postures.”
The Future of Cybersecurity
Looking ahead, Seewald identifies several key areas of opportunity. Midsize companies, historically underserved by cybersecurity solutions, represent a significant growth market. Additionally, the human factors of cybersecurity—addressing the behaviors that lead to security breaches—are another critical focus. “Human behavior is probably the most difficult part of the cybersecurity attack surface to tackle,” Seewald states. “Machine learning and AI can enhance our ability to address these human factors.”
The threat landscape is continuously evolving, with adversaries increasingly using automation and AI to launch sophisticated attacks. Seewald underscores the importance of resilience in cybersecurity strategies. “The CrowdStrike issue highlighted the impact of a misconfigured update on software resilience. It points to the need for a diversified cybersecurity stack to reduce single points of failure.”
Leadership and Vision
Leadership plays a pivotal role in Evolution’s success. Seewald and his team bring unparalleled experience in the cybersecurity industry, with backgrounds as investors, operators, and technologists. This deep expertise allows them to partner effectively with entrepreneurs and drive the growth of their portfolio companies.
“One of the most important attributes of a leader is being coachable and open to new learning opportunities,” Seewald says. “The ability to articulate values and align them with day-to-day operations is crucial for the success of a company experiencing rapid growth and technological development.”
Seewald’s mission with Evolution Equity Partners is clear: to invest in and grow companies that defend and protect the critical infrastructure of our digital world. This mission is more important than ever as the number of connected devices and the complexity of cyber threats continue to grow.
“Our team has had a front row seat in the development of the cybersecurity industry over the past 30 years. First as investors and executives at AVG Technologies, and now as leaders at Evolution Equity Partners, we’ve contributed significantly to the industry’s growth and maturity,” Seewald remarks. “We’re committed to leveraging our experience to support the next generation of cybersecurity leaders.”
Evolution Equity’s Global Reach
Evolution Equity Partners is distinguished not only by its strategic investment approach but also by its global reach. With teams in New York City, Palo Alto, London, Zurich, and significant investments in Israel, the firm operates as a truly international cybersecurity investment platform.
“The mission to invest in world-class cybersecurity companies is an international endeavor,” Seewald asserts. “From the very start, we were a global investor, very aware that the demand for cybersecurity technology is handled differently in global markets.”
This global perspective allows Evolution to identify and capitalize on unique opportunities in various regions. For instance, the firm’s investments in Israeli cybersecurity startups leverage the country’s renowned tech ecosystem and innovative approaches to cybersecurity challenges.
The Role of AI and Machine Learning
AI and machine learning are not just buzzwords for Seewald; they are critical components of the cybersecurity landscape. “AI and machine learning have been part of the cybersecurity technical stack for over a decade,” he notes. “These technologies enable us to better detect and respond to threats, automate processes, and ultimately enhance the overall security posture of organizations.”
Seewald highlights the transformative potential of generative AI and large language models. “The onset of large language models presents new opportunities to use AI technology to detect threats more effectively, respond to incidents faster, and automate previously manual tasks,” he explains. “This is particularly important given the global shortage of cybersecurity professionals.”
Human Factors in Cybersecurity
While technology plays a crucial role, Seewald emphasizes that human factors remain a significant challenge. “Human behavior is the most difficult part of the cybersecurity attack surface to tackle,” he says. “90% of cybersecurity incidents are caused by human error, whether it’s falling for phishing attacks, downloading ransomware, or misconfiguring systems.”
To address this, Evolution Equity Partners invests in companies that focus on improving human factors in cybersecurity. These companies develop solutions that help organizations educate their employees, reduce human error, and enhance overall security awareness.
Resilience and the Cybersecurity Ecosystem
Resilience is a recurring theme in Seewald’s discussion of cybersecurity. The ability to withstand and quickly recover from cyber incidents is crucial for modern organizations. “The CrowdStrike issue is a perfect example of the importance of resilience,” Seewald points out. “It wasn’t a cybersecurity failure per se, but a misconfigured update that highlighted the need for robust and resilient security systems.”
Seewald advocates for a diversified cybersecurity stack to minimize single points of failure. “Relying on a single vendor for your entire cybersecurity stack can create systemic risks. Diversification reduces these risks and enhances overall resilience.”
Richard Seewald and Evolution Equity Partners are not just investors; they are pioneers in the cybersecurity industry. Through their strategic investments and robust playbook, they have built a portfolio of companies that are leaders in protecting our digital world. As cybersecurity threats evolve, Seewald’s vision and leadership ensure that Evolution Equity Partners remain at the cutting edge, ready to defend and protect what matters most.
The future of cybersecurity is undoubtedly challenging, with evolving threats and increasing complexities. However, with leaders like Richard Seewald and firms like Evolution Equity Partners, the industry is well-equipped to tackle these challenges head-on. Their commitment to innovation, resilience, and global collaboration sets a benchmark for excellence in cybersecurity investment, promising a safer digital world for all.
