SimSpace, a company specializing in creating digital replicas of organizations’ tech and networking stacks for cybersecurity training, has recently announced a successful funding round. L2 Point Management led the investment, contributing a total of $45 million. This funding round brings SimSpace’s total raised capital to $70 million, marking a significant milestone for the company.
Key Takeaway
SimSpace secures a $45 million investment led by L2 Point Management, propelling the company towards its goal of achieving $50 million in annual recurring revenue by 2023. With a focus on developing high-fidelity cyber training simulations, SimSpace has garnered recognition from government agencies and private sector entities, positioning itself as a key player in the cybersecurity training landscape.
Expanding Opportunities and Revenue Goals
SimSpace’s co-founder and CEO, William Hutchison, shared that the company is well on its way to achieving its annual recurring revenue target of $50 million by the conclusion of the fiscal year 2023. Notably, SimSpace has expanded its client base in the private sector, securing contracts with prominent entities such as the U.S. Cyber Command, FBI, and national cyber defense teams in undisclosed U.S.-allied nations.
Government and Private Sector Recognition
Hutchison emphasized that SimSpace was selected by the U.S. Department of Defense to provide training for U.S. Cyber Command operatives, in addition to being chosen by four of the top five U.S. banks. The company’s recognition in both government and private sectors underscores its growing influence and reputation in the cybersecurity training domain.
Origins and Unique Capabilities
The origins of SimSpace can be traced back to U.S. Cyber Command, where Hutchison spearheaded the development of a joint tactical cyber training exercise called Cyber Flag. Collaborating with tech expert Lee Rossey from MIT’s Lincoln Lab, the concept of creating cyber “training ranges” to simulate the IT production environments of companies and critical infrastructure was realized. This laid the foundation for the establishment of SimSpace in 2015.
Hutchison highlighted the unique advantage of SimSpace’s training approach, stating that by conducting training outside of a company’s network, cybersecurity teams can undergo rigorous simulations without risking disruptions to actual production environments. The company’s innovative traffic-generation capability enables security teams to assess and optimize the effectiveness of their security tools.
Future Growth and Investment Impact
With the recent investment, SimSpace anticipates “profitable growth” and plans to gradually expand its workforce. L2 Point managing partner Kirsten Dittmar expressed confidence in SimSpace’s capabilities, noting the company’s significant traction with leading organizations and national cyber defense entities. The funding is expected to further enhance SimSpace’s military-grade capabilities as it continues to serve an increasingly diverse and advanced customer base.
