SimSpace, a startup specializing in the development of digital replicas of organizations’ technology and networking infrastructures for cybersecurity training, has secured $45 million in a funding round led by L2 Point Management. This investment marks a significant milestone for SimSpace, which was self-funded until approximately two years ago and brings its total funding to $70 million.
The timing of this funding is opportune for SimSpace, which aims to reach its annual recurring revenue target of $50 million by the conclusion of the fiscal year 2023, as stated by co-founder and CEO William Hutchison. The company is actively expanding its clientele in the private sector, with contracts secured from notable entities such as the U.S. Cyber Command, FBI, and national cyber defense teams in undisclosed U.S.-allied nations.
Hutchison highlighted SimSpace’s selection by the U.S. Department of Defense for training U.S. Cyber Command operatives, along with partnerships with four of the top five U.S. banks. Despite navigating a challenging financial environment in the past two years, SimSpace has demonstrated resilience, making strategic decisions to navigate market expansion.
SimSpace originated from U.S. Cyber Command, where Hutchison led the design of a joint tactical cyber training exercise called Cyber Flag. Collaborating with Lee Rossey, a tech expert from MIT’s Lincoln Lab, Rossey was engaged in developing cyber “training ranges” simulating IT production environments for companies and critical infrastructure. In 2015, Hutchison and Rossey established SimSpace to bring their cyber practice, testing technology, an “attack library,” and cyber learning content to both the private sector and various government agencies.
SimSpace’s approach allows training to occur outside a company’s network, enabling rigorous testing of cyber teams without risking disruptions to actual production environments. Hutchison emphasized SimSpace’s unique traffic-generation capability, empowering security teams to evaluate and enhance the efficacy, recall, and precision of their security tools.
With just over 200 employees, SimSpace aims to “grow profitably” and modestly expand its workforce with the latest investment, according to Hutchison. Kerstin Dittmar, managing partner at L2 Point, expressed confidence in SimSpace’s future, highlighting the significant traction gained by its high-fidelity cyber ranges among leading companies and national cyber defense organizations. The financing will enable SimSpace to build on its momentum and enhance its military-grade capabilities to serve an increasingly diverse and advanced customer base.
