Huntress: Pioneering Cybersecurity for the Underserved SMB Market

Initiation of Coverage

Huntress, founded in 2015 by former NSA operators Kyle Hanslovan, Chris Bisnett, and John Ferrell, has become a leader in SMB cybersecurity. The company’s managed security platform provides SMBs and MSPs with enterprise-grade protection, addressing a market often ignored by larger cybersecurity firms.

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Business Model & Market Position

Huntress operates on a managed security platform model, offering:

• Endpoint Detection and Response (EDR)

• Identity Threat Detection and Response (ITDR)

• Security Awareness Training

Key Differentiators:

✔ Designed for SMBs: Unlike enterprise-focused cybersecurity providers, Huntress tailors its solutions to the needs and budgets of smaller businesses.

✔ 24/7 Human Threat Hunting: A team of analysts continuously monitors and mitigates threats.

✔ MSP-Friendly Model: A significant portion of its business comes through Managed Service Providers (MSPs), making it a key player in the channel-driven cybersecurity market.

According to industry estimates, the global SMB cybersecurity market is projected to exceed $100 billion by 2027, highlighting Huntress’s long-term growth potential.

Funding & Valuation History

Huntress has raised $308.05 million across multiple funding rounds:

• Series D (June 2024): Raised $150 million at a valuation exceeding $1.5 billion (led by Kleiner Perkins, Meritech Capital, and Sapphire Ventures).

• Series C (2023): Raised $60 million to expand its security offerings.

• Notable Investors: ForgePoint Capital, JMI Equity, and others.

With significant private equity backing, Huntress is well-funded for further expansion and acquisitions.

Growth Trajectory & Key Milestones

Revenue & Market Penetration:

• Achieved $100M ARR in September 2024 – reaching Centaur status.

• Sustained 70%+ YoY revenue growth for the past two years.

• Secures over 3M endpoints, protects 1M+ identities, and defends 120K+ businesses.

Strategic Acquisitions:

• Curricula ($22M, 2024): Strengthened security awareness training.

• Level Effect (2021): Expanded threat detection capabilities.

These acquisitions enhance Huntress’s ability to provide comprehensive security solutions to SMBs.

Liquidity & Secondary Market Interest

Though specific secondary transactions are undisclosed, Huntress’s rising valuation and pre-IPO positioning make it attractive for investors.

• Potential IPO in the next 24-36 months: CEO Kyle Hanslovan has hinted at public market aspirations.

• Strong investor appetite: Given its growth, secondary market activity could rise as early investors seek liquidity.

Risks & Challenges

1. Competitive Market: Faces strong rivals like CrowdStrike, SentinelOne, and Palo Alto Networks.

2. Evolving Threat Landscape: Must continuously adapt to new cyber threats.

3. Market Saturation: SMB awareness is growing, attracting more competitors.

4. Regulatory Risks: Compliance requirements in cybersecurity are complex and evolving.

Future Outlook

Huntress is well-positioned for continued expansion:

1. New Products: Recently launched SIEM (Security Information and Event Management) solutions to enhance its platform.

2. Global Expansion: Plans to enter Canada, the UK, Europe, Australia, and New Zealand.

3. Healthcare Sector Growth: Increasing demand from hospitals and medical providers for cybersecurity solutions.

4. IPO Potential: A 2025 IPO would provide additional capital for scaling and acquisitions.

With strong funding, rapid revenue growth, and a clear path to IPO, Huntress is a compelling opportunity in the secondary market. Investors should watch closely as the company moves toward its next phase of expansion.

As of March 2025, Huntress current valuation is $1.8 Billion. For more information, talk to us. Accredited Investors and Qualified Purchasers only.

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Disclaimer

Private companies carry inherent risks and may not be suitable for all investors. The information provided in this article is for informational purposes only and should not be construed as investment advice. Always conduct thorough research and seek professional financial guidance before making investment decisions.