Paladin led IriusRisk’s Series A and B rounds, totaling $23 million in funding
Washington, D.C. – Today, Paladin Capital Group’s portfolio company IriusRisk, a leading threat modeling platform, announced its acquisition by ThreatModeler. The combination brings together two of the leading global providers of threat modeling solutions that embed security early in the software design and development lifecycle. As part of the combination, Paladin is rolling a significant portion of its current invested capital, in addition to new funding, into the new entity. Paladin will continue to hold a meaningful stake in the newly merged entity alongside lead investor Invictus Growth Partners, the majority owner of ThreatModeler.
Criminal gangs and nation states regularly attack companies and governments that are vulnerable due to insecure architectures and code. Together, the combined company will offer a best-in-class, AI-enabled platform that directly solves and closes this attack vector because it will perform risk analysis, build detailed threat models, and produce actionable remediation guidance for development teams. Their platforms enable engineering teams to automate the modeling of architectural risks at design time and generate secure architectures and requirements before code is written, ensuring applications are robust and secure by design. The combined company will serve more than 200 enterprise customers that rely on design-time security to reduce software risk and meet compliance requirements, including Fortune 1000 companies across the financial services, pharmaceutical, technology and critical manufacturing industries in North America, EMENA, and Asia.
“As the pace of AI accelerates, technology that is secure-by-design is paramount. Paladin recognized early on the value that IriusRisk could provide customers to enable resilient digital applications by seamlessly enabling threat modeling as a natural part of the development process instead of an afterthought,” said Michael Steed, Paladin Capital Group Founder and Managing Partner. “When combined with ThreatModeler’s AI-driven platform, the merged company will be the clear category leader in AI-enabled threat modeling and allow this technology to further scale and build more secure systems across our critical infrastructure.”
As part of the Firm’s investment thesis to advance secure-by-design technology, Paladin led IriusRisk’s $6.7 million Series A funding in 2020, in addition to leading the company’s $29 million Series B funding round in 2022 with participation from existing investors SwanLaab Venture Factory, BrightPixel Capital, 360 Capital and Inveready.
“This combination presents a major opportunity to bring this critical technology to more sectors and customers,” said Kenneth Pentimonti, Managing Director at Paladin Capital Group. “I want to congratulate Stephen De Vries and his remarkable team at IriusRisk on this milestone and their great success to date. We also look forward to working with Matt Jones and the team at ThreatModeler to build a successful combined business. Matt brings deep cybersecurity expertise and a strong track record of value creation, having previously led Paladin portfolio company CloudShield to a profitable strategic exit to SAIC. We believe that together these companies will be well positioned to scale their threat modeling technology and lead the industry.”
About Paladin Capital Group
Paladin Capital Group was founded in 2001 and has offices in Washington DC, New York, London, Luxembourg, and Silicon Valley. As a multi-stage investor, Paladin’s core strength is identifying, supporting, and investing in innovative companies that develop promising, early-stage technologies to address the critical cyber and advanced technological needs of both commercial and government customers.
Combining proven investment experience with deep expertise in global security, cyber technology, and cutting-edge research, Paladin has invested in more than 80 companies since 2008 and has been a trusted partner to investors, entrepreneurs, and governments for over two decades.
For more on Paladin Capital Group, follow us on Twitter at @Paladincap and on LinkedIn or visit us at www.paladincapgroup.com.
About Invictus Growth Partners
Invictus Growth Partners is a middle-market growth equity firm with over $1 billion in assets under management, investing in bootstrapped and capital-efficient cloud software, cybersecurity, and fintech companies. The firm is deploying more than $600 million from recently closed funds and provides portfolio companies exclusive access to DIANE, its AI-driven value-creation platform, which has delivered a significant increase in direct sales conversion and can provide access to thousands of warm customer introductions. Invictus makes majority investments with $30 million to $100+ million equity checks. Visit us at invictusgrowth.com.