Miami, FL - Halborn, a cybersecurity firm serving both traditional finance and blockchain-based clients, announced the completion of a $90 million growth equity financing, the first external funding in the company's history. Global growth investor Summit Partners led the round, with participation from Castle Island, Digital Currency Group, Brevan Howard, Third Prime, Sky Vision Capital, and Fenwick. The funding was first announced in a Bloomberg exclusive.
Halborn was founded in 2019 by Steven Walbroehl and Rob Behnke with a vision to secure the blockchain and protect users against data and monetary losses. Profitable since inception, Walbroehl and Behnke bootstrapped Halborn into a leader in Web3 security. Halborn is growing rapidly and today serves over 250 clients and employs more than 100 team members around the world.
"With security vulnerabilities dominating the crypto news headlines, and over $1.5 billion in financial losses from DeFi hacks in 2022 to date, the demand for Web3 security is only growing," said Halborn co-founder and CISO Steven Walbroehll, author of the SANS Institute course on Blockchain and Smart Contract Security. "Funding from this Series A will be used to expand our global team of offensive security engineers and build our Halborn Labs division, accelerating our robust pipeline of SaaS security products."
With thousands of centralized and decentralized applications touching Web3 and developer counts growing rapidly, the Web3 attack surface has grown exponentially in recent years. Applications and APIs are often far more vulnerable than the blockchains upon which they are developed. Open-source vulnerabilities and human programming error have created significant, well-documented cyber risks - but the market has developed few security standards to address this challenge.
Operating across the software development lifecycle, Halborn provides a suite of products and services designed to identify and close vulnerabilities in Web3 applications, helping to create the security standards that the market currently lacks.
Halborn currently serves a diverse global client base spanning Layer 1 blockchains, infrastructure providers, financial institutions, and application and game developers. Halborn's customers include Solana Foundation, Avalanche, and Figment.
"Summit has a long history of partnering with innovative cybersecurity leaders focused on protecting against both monetary and data breaches in a constantly evolving and ever-expanding threat landscape. We believe the stakes and costs are even higher in Web3, given the decentralized development of and the dollars controlled by Web3 applications," said Matt Hamilton, a Managing Director at Summit Partners, who has joined the Halborn Board of Directors. "In a very short time, Halborn has established itself as a globally recognized brand in blockchain security working across Web3 and Web2 environments. The Halborn team has earned a reputation for tackling complex projects and has an impressive record of identifying high-profile vulnerabilities and breaches."
"Cybersecurity risk has historically been a barrier for organizations seeking to launch products in the blockchain industry. Halborn is changing this risk/reward equation and, in doing so, is expanding the addressable market for public blockchain technology. We are thrilled to partner with Halborn as they expand their product offering," said Matthew Walsh, Founding Partner at Castle Island.
"Third Prime is focused on investing in market leaders in some of the most important areas of crypto, and we believe the Halborn team, track record and technology fit squarely in this mandate. We're excited to partner with them as they secure companies across the space," added Wes Barton, Managing Partner at Third Prime.