A 10-year-old cyber security company just raised $35 million from Goldman in its first series A
Iboss, a ten-year-old cybersecurity company, raised $35 million from Goldman Sachs in its first-ever fundraising round.
Started in 2005 by twin brothers Peter and Paul Martini in the aftermath of the dotcom bubble, the company brought its first product to market in 2009, at the height of the Great Recession.
"It's been a pretty interesting run we've had," president Peter Martini told Business Insider in a telephone interview. "It did discipline us into creating a table platform selling on the technology itself."
Iboss has been profitable since its early days, Peter said, and has no debt. In a statement, the company said it has grown 1,800% but didn't specify what measure that figure refers to.
Iboss, based in California, uses technology that prevents hackers from stealing data by monitoring and detecting suspicious network traffic movement. The company's clients include Xerox, Sears, Urban Outfitters and the US Department of the Interior.
The sons of Cuban immigrants, the Martini brothers developed an interest in technology at a young age, Peter said. Beginning at age seven, they spent their summers and weekends working at their father's auto repair shop in Los Angeles.
"A lot of it was taking apart things. In the late 80s, early 90s, cars were becoming more digital. We were playing around with electronics," Peter said. The cars were sophisticated computers for their time.... It was pretty fun. It grew our interest in technology being able to fiddle with that stuff as a young kid."
The financing with Goldman's Private Capital Investing Group, is the company's first round of venture capital financing. It turned down earlier investors because it "didn't need the cash," Peter said.
But Goldman's global presence offers the company a chance to scale its business to multiple markets worldwide, Peter said.
The company plans to use the new financing to continue to develop technology, and rollout its direct-to-cloud platform, called Secure Web Gateway Platform.
Goldman will be a minority stakeholder in the company, and Goldman vice president, Stephen Kerns, will join the board. Peter declined to disclose the company's valuation, saying only that it was more than $500 million.
Iboss currently employs 150 people, but will be adding more in the next three to four months.
It has offices in California and Florida, as well as in the UK, Philippines, and Argentina. The company plans to open offices soon in Australia, Japan, and Eastern Europe.
Needham & Co. advised the company on the fundraising.