SimSpace, a startup specializing in the development of digital replicas for cybersecurity training based on organizations’ tech and networking stacks, has secured $45 million in a funding round led by L2 Point Management. This investment brings SimSpace’s total funding to $70 million, marking a notable milestone for the company that was completely self-funded until approximately two years ago.
SimSpace is progressing towards achieving 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 also broadening its clientele in the private sector, having recently secured contracts with key entities such as the U.S. Cyber Command, FBI, and national cyber defense teams in unspecified U.S.-allied nations.
Hutchison highlighted SimSpace’s selection by the U.S. Department of Defense for training U.S. Cyber Command operatives and its partnerships with four out of the top five U.S. banks. Despite facing challenges in navigating a tough financing environment over the last two years, SimSpace has adapted by making difficult decisions and persevering.
SimSpace originated from Hutchison’s experience at the U.S. Cyber Command, where he led a joint tactical cyber training exercise called Cyber Flag. Collaborating with MIT’s Lincoln Lab tech staffer Lee Rossey, who was focused on creating cyber “training ranges” simulating the IT production environments of companies and critical infrastructure, Hutchison and Rossey established SimSpace in 2015. The company aimed to bring its cyber practice and testing technology, along with an “attack library” and cyber learning content, to both the private sector and additional government agencies.
SimSpace’s approach enables training to occur outside a company’s network, providing the flexibility to conduct comprehensive cybersecurity exercises without the risk of disrupting actual production environments. Hutchinson emphasized the unique traffic-generation capability of SimSpace, enabling security teams to measure and optimize the efficacy, recall, and precision of their security tools.
With just over 200 employees currently, Hutchison anticipates that SimSpace will be able to grow profitably and modestly expand its workforce with the latest investment. Kerstin Dittmar, managing partner at L2 Point, expressed confidence in SimSpace’s high-fidelity cyber ranges, stating that the financing will support the company in building on its momentum and enhancing its military-grade capabilities as it serves an increasingly diverse and advanced customer base.
