An Arlington-based venture capital firm has announced it will pour $32 million in funding into cybersecurity startups.
Runtime Ventures, based out of Arlington and Austin, Texas, officially announced the capital commitment today (Wednesday).
It has already made 11 investments from the fund so far, supporting seed-stage cybersecurity companies focused on domains including code analysis, fraud protection, threat detection and browser security.
Co-founder Michael Sutton told ARLnow that he believes many aspects of the D.C. area, including access to talent and proximity to the federal government, make it appealing for tech companies — so long as they can find investment capital.
“That’s a gap that we really hope to be able to help fill, because there is no doubt in my mind that the DMV area should be at the top of the list for any tech founders, especially in cybersecurity,” he said.
Sutton and his partner David Endler both have a background in launching cybersecurity services, products and companies. While Sutton is the founder of StoneMill Ventures and the former chief information security officer for Zscaler, Endler co-founded the cybersecurity startups SpyCloud and Jumpshot.
“Having been in the trenches building cybersecurity startups, we know firsthand how tough those early years can be,” Endler said in a press release. “Great ideas alone aren’t enough. Founders need the right team, resources and support to turn their companies into successful ventures.”
Sutton said that he’s particularly excited for the amount of funding Runtime Ventures has been able to raise, since the D.C. area often lacks the investors of Silicon Valley or cities like Boston and New York.
“Some of the most successful cybersecurity founders and operators in the world have chosen to back us and they’re anxious to get involved. We’re truly humbled,” he said. “We’re excited to embark on this journey and are committed to fostering the next generation of cybersecurity leaders and innovations.”
Sutton, who lives in Arlington, noted that the county has a reputation for attracting talented professionals and consistently ranks near the top of the charts for quality of life. He hopes that Runtime Ventures can help companies take advantage of available resources to get projects off the ground.
“It’s not hard to attract the talent, but again, it takes more than that,” he said. “It takes the investment capital and a broader ecosystem.”
Endler added that he believes his and Sutton’s experience in cybersecurity will give founders the support they need to be truly successful.
“We started Runtime Ventures not only because we’ve been there, but we love to help founders navigate those early challenges and avoid some of the mistakes we’ve made ourselves along the way,” he said. “It’s not just about capital, it’s about having the right people in your corner who’ve scaled cybersecurity companies before.”
