isn’t part of what we do.
It’s everything we do.
We identify the true investment whitespaces, the underserved and underinvested frontiers that are critical for the security and resiliency of the country.
With the relentless rise in online attacks, cybersecurity offers investors double digit growth, largely immune to the economy. But it is crowded, complicated, and constantly changing, leading to the rise of cyber specialist investors , and with it, sector-focused funds.
Option3’s success lies in combining its national security heritage and access with broad investment experience from seed to buyout. It seeks companies on the cyber frontier that address challenges most essential for the security and resiliency of the country: disruptive technologies, automation, cyber-physical threats, and risk transfer.
Investment and Operating Team
Option3 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 Option3’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.
Strategic Advisory Council
Option3 benefits from a wide array of Strategic Advisors, who bring specialist expertise covering target market verticals, industries, technologies and investment classes. The Council is Chaired by Option3’s Senior Strategic Advisor, Dick Fuld, former CEO of Lehman Brothers.
Over the past six years, Option3 has invested in 8 companies from as far afield as Northern Virginia, Silicon Valley, and Western Europe, with roughly half being in the Washington DC area. The companies bring strengths in areas that have been prioritized by Option3’s “Cyber Frontier” investment themes. Sectors that Option3 has invested in include:
- Threat Intelligence
- Critical Infrastructure/Industrial Controls
- Operational Technology
- Automotive Security
- Software Defined Networking
- Data Loss Prevention
Two of our earlier investments have been realized through company acquisition by recognized leaders in their product areas, while others have seen growth and recognition. Currently, we are looking to invest out of our Option3 Cyber II, LP fund, which focuses primarily on buyout and control equity positions, but also makes select life cycle or earlier-stage investments in companies with a clear path to growth. Companies are encouraged to contact us if seeking investment.
Option 3 Cyber Investments II, LP (O3C2)
OPTION 3 CYBER INVESTMENTS LLC (O3CI)
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.
Option3 launched its successful Option3 Cyber Investments LLC (O3C1) portfolio in 2015, soon after the company’s launch. This concentrated venture portfolio was Option3’s market entry vehicle and funded largely my partners. Option3 has begun “advance investing” out of Option3 Cyber Investments II, LP (O3C2), a diversified private equity fund focused exclusively in cybersecurity, focused primarily on buyouts and control equity investments in growing companies with a proven business model.
Option3 Cyber Investments II, LP (O3C2)
Option3 Cyber Investments LLC (O3C1) and Prior Investment
Option3 Cyber Investments LLC (O3C1) was conceived and launched soon after the company’s founding in 2015 as its market debut investment fund, and funded by the Firm’s partners and closely related investors. Its concentrated portfolio, comprising three venture investments, is tracking for returns far outpacing all benchmarks. As of early 2021, this vehicle’s estimated value is approximately $100M, following one exit and one unrealized gain.
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