Option3Ventures Lives At The Cybersecurity Investing Frontier
Cybersecurity investing isn’t part of what we do. It’s everything we do.
Our cybersecurity private equity fund draws on expertise and experience gained in the U.S. intelligence community and the investment industry to identify the true investment whitespaces – the underserved and underinvested frontiers where traditional information security solutions won’t work.
Option3Ventures is a mission-driven cybersecurity investment specialist, which combines a heritage in the national security community with expertise from the investment industry. It seeks to invest in control or significant minority positions in growth and late-stage companies addressing critical cybersecurity problems. Option3Ventures is experienced in investing across the company lifecycle from Series A to IPO, allowing it to source selected early-stage opportunities which it can back at later stages. In this way, Option3Vewntures seeks to deliver on a double-bottom line thesis of high returns for our investors and greater online security for our country.
Option3Ventures has built a multi-functional team of dedicated cybersecurity investment, operations and technology experts that bring together the experience and expertise required for meeting the unique challenges of investing in the cyber sector. Each member has an average of 25 years of work experience. Working together, the team has closed five investments, and are launching their first dedicated fund.
At the heart of O3V’s decision making is its Technology Board, which assesses each potential investment that we make. The Technology Board consists of former Chief Information Officers from such organizations as the CIA, DoD, U.S. CyberCommand, Merrill Lynch, AOL Time Warner, among others.
O3V benefits from the senior financial markets expertise and heritage of Richard S. Fuld, Jr., former CEO and Chairman of the Board of Lehman Brothers. Since 2009, Mr. Fuld has been the Chairman of Matrix Investment Partners, his family office. In 2019, Mr Fuld joined O3V as a Senior Strategic Advisor.
Over the past five years, the Option3Ventures team has invested in 8 companies, mainly through two investment vehicles, Option3 Cyber Investments LLC, and now through Option3 Cyber Investments II, LP. Out of its earlier investments, it has had two successful exits, with large unrealized gains on a third. Its current investments will form the starting portfolio of our second fund at the time of its first close.
O3C2 is being launched as one of the first diversified private equity funds investing exclusively on the cybersecurity sector. Its core growth and buyout focus is strengthened by an ability to selectively invest earlier stage where there is a quick path to maturity and the ability to invest across the company’s lifecycle. O3C2 has begun forward-deploying capital ahead of its first close in late 2021, and currently has four portfolio companies.
O3CI is a concentrated venture portfolio, and Option3Venture’s market entry investment vehicle. Its three investments have shown substantial realized and unrealized gains. It currently now has two remaining portfolio companies.
Watchful Software provides user-friendly, data-centric classification and keystroke dynamics that don’t impact your users. RightsWATCH and TypeWATCH are tailored to provide persistent security solutions that prevent accidental and malicious disclosure. As a result, your security protocols are enhanced and compliance becomes the rule.
Pioneered the application of artificial intelligence/ machine learning analytics to satellite/ drone imagery/ sensory data and big data to extract actionable, predictive business intelligence that was previously unobtainable.