Cybersecurity Executives Validate Dark Web Investment for Client
The Challenge
Only 4 percent of the Internet is viewable from a Google search; the rest is part of the dark web where information like credit card numbers and bank statements are stored. Apex Leaders’ client, a private equity firm that focuses on B2B software investments, wanted to diligence a company that monitors and provides insights on the dark web. The investment was attractive as financial institutions and the government want to avoid security breaches.
The Search
Cybersecurity firms received close to $7 billion in PE funding in 2019, according to data from Pitchbook; but
among these firms, very few focus exclusively on the dark web; and only a handful of firms, including the target
company, monitor the dark web using machine-learning and archival tools. Among this small pool of potential advisors, the client wanted to speak to formers from competitor companies and from the target who could shed light on the company’s differentiation and provide insights on future growth opportunities.
The Results
Apex delivered advisors from 4 competitor firms, as well as formers from the target including a Business Development Professional with fresh insights who had left the target company 2 weeks prior to the client intake call.
- Vice President of Sales | Webhose.io
- CEO | RepKnight
- CMO | Digital Shadows
- Director | CrowdStrike
After speaking with these advisors, the client wanted to know more about the added value that this product provides to end-customers and whether there are opportunities to sell dark web products to smaller companies. Apex introduced the client to a professor at Arizona State University where significant research on the dark web has been conducted. This professor has published extensively on this subject and also founded a relevant cybersecurity startup.
Last Word
After speaking with a total of 10 advisors the client made an investment in the dark web company. Advisors provided by Apex validated that the company provided significant value to customers and that future expansion opportunities existed.