Trident Capital Cybersecurity closes on $300 mln security fund

Trident Capital Cybersecurity said it closed on an oversubscribed $300 million fund, likely the largest venture fund dedicated solely to security.

The new money, 50 percent more than initially targeted, will enable the firm to expand its support of companies well beyond early rounds.

It also will lead to the hiring of a fourth managing director and an expansion of the firm’s staff of investment professionals.

The fund is the firm’s first since it spun out of Trident Capital in mid-2015, and it will be run by Managing Directors Alberto Yépez, Don Dixon and Sean Cunningham.

Initially, Trident Capital Cybersecurity had sought $200 million for its first fund, but increased its size at the urging of LPs, who wanted the firm to have a larger impact on its portfolio companies, Yépez said.

Cyber Security Yepez Fund
Alberto Yépez, managing director, Trident Capital Cybersecurity. Photo courtesy of the firm.

The fund has already made five investments and will initially seek to particulate in Series A and B rounds. Sectors of interest include Internet of Things; secure payments and fraud; next-generation identity platforms; behavioral analytics; and organizational privacy and security.

The five investments are 4iQ, Appthority, Bayshore Networks, ID Experts and IronNet Cybersecurity.

Overall, the fund will back 23 companies in the United States, Israel, Europe and Canada.

The firm has a 47-member Cybersecurity Industry Advisory Council, which Yépez said makes it a better investor.

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