McKinsey invests in cybersecurity company Praetorian
Strategy firm McKinsey & Company has invested in Praetorian, an Austin-based cybersecurity consultancy. McKinsey was joined by Austin-based venture capital firm Bill Wood Ventures in the $10 million Series A round of funding.
Praetorian was founded in 2010 and has grown to a team of 50 professionals. The firm delivers cybersecurity solutions across internet of things, SaaS and mobile applications, and cloud, corporate and critical infrastructure. The company’s Diana platform delivers subscription-based, ongoing security testing coverage with machine learning-aided vulnerability detection.
Praetorian has served a number of large clients, including Google, Microsoft, Samsung, and Halliburton. The company has been an Inc. 5000 fastest-growing company for the past five years. The company booked growth of 179% in 2019, with revenues of $12.4 million. Praetorian was also named an Inc. Best Workplace in 2018 and 2019.
McKinsey’s investment in Praetorian follows its September 2019 investment in the CA$200 million Series B funding round of Element AI, a Montreal-based AI software developer. Cybersecurity and artificial intelligence are two of the hottest segments within the booming digital sector.
The firm has made investments into seven innovative companies since 2015, including Indian startups Revv (a car rental firm) and Tjori (an online marketplace).
McKinsey also announced that it entered a strategic partnership with Praetorian to help clients solve their cybersecurity challenges. McKinsey selected the firm because of its “client-first culture, strong brand reputation, organizational sophistication and technical talent density,” a release from Praetorian stated.
“This investment and collaboration complements and extends our existing cybersecurity capabilities,” said Kevin Buehler, senior partner and global leader of McKinsey’s cybersecurity practice. “We have been deeply impressed with Praetorian’s distinctive capabilities in security architecture and engineering and feel confident that our shared values will allow us to help clients put security at the center of their business strategy. We are delighted to partner with such a world-class team.”
Nathan Sportsman, founder and CEO of Praetorian, added, “Investors that are not constrained by the mechanics of a traditional fund give Praetorian the flexibility to take a long-term view that aligns client and shareholder interests and that nurtures the experimentation cycles of innovation. Bill Wood and McKinsey share our conviction that there are no shortcuts to building an enduring institution with the client at the center.”
