According to a Research and Markets report, the global security and vulnerability management market is expected to grow 9.3% over the next few years to $13.7 billion by 2026. Earlier this week, cloud-based security player Qualys (Nasdaq: QLYS) reported its upbeat fourth quarter results. Qualys also recently announced the acquisition of a 1Mby1M company Adya.
You have, presumably, read my recent article Bootstrapping to Exit. As a follow-up, let me offer you some case studies.
All the nine acquisitions by Freshworks have been for undisclosed amounts. Cloud-based video collaboration platform 1CLICK, acquired in 2015, was founded in 2012 and had raised an undisclosed seed round from Blume Ventures and The Chennai Angels in 2014.
Sramana Mitra: You’ve done a nice job of defining the problem. What is viable architecturally given the fact that there are devices everywhere and the level of connectivity via devices is unbelievably expensive at the moment and increasingly more so?
Joe Lea: That viability problem that you mentioned is exactly the reason why I left Tanium. We solved a lot of the traditional endpoint problems that have plagued the industry there. But the approach there is to require an agent to be installed on an endpoint.That works when you’re talking about laptops, desktops, and servers but it doesn’t work when you’re talking about a voice over IP phone or an insulin pump within healthcare. >>>
Sramana Mitra: What do you want to convey to the audience as your parting thoughts?
Navid Alipour: We’re getting the word out about what Analytics Ventures is doing. Geographically, all our current companies happen to be in San Diego but our hands aren’t tied. We could launch a company in Berlin, London, or in Des Moines, Iowa.
Sramana Mitra: You’re worried about geography given your high touch venture studio model? >>>
Connected devices are everywhere and will soon also be implanted in our bodies.
This poses an enormous security challenge. Joe and I discuss the open problems and some partial solutions, including where there are opportunities for new entrepreneurs.
Sramana Mitra: Let’s start by introducing our audience to yourself and to Armis. >>>
Sramana Mitra: Are you shooting for unicorns?
Navid Alipour: While we certainly wouldn’t shy away from getting home runs with unicorns, our business model is to stay with that baseball analogy. We want to be able to make money for ourselves and other co-founders by hitting singles and doubles. Your traditional venture fund invests in 20 deals knowing that 10 of them will likely fail and they’ll have a couple of 1x, 2x, or maybe 3x return. They’re betting on one or two home runs to make the fund. >>>
For entrepreneurs interested to meet and chat with Sramana Mitra in person, please join us for our bi-monthly and informal group meetups. If you are living in the San Francisco Bay Area or are just in town for a visit, we hope you will add these meetups to your calendar and join us. Pre-registration is required, REGISTER HERE.
In case you missed it, you can listen to the recording of this roundtable here: