Veteran-owned Protocol 46 closes successful $1.1 million growth round with Twin Cities Angels for cybersecurity growth in the SMB market
St. Paul, MN - From the bunker of a former firearms warehouse, a group of military intelligence veterans provides cyber defense for businesses using their groundbreaking Defense in Depth cybersecurity solution. This week, they closed a $1.1 million round of financing. Although details are not disclosed, Twin Cities Angels took the lion’s share investment in this $1.1 M Preferred round of financing and led the round.
Protocol 46 provides full service risk management and cybersecurity specifically for small and medium sized businesses with Defense in Depth, a plug-and-play military-grade cybersecurity solution for American small and medium sized businesses in this attractive but underserved $200 billion market. These businesses are in a tough spot,” said Scott Schue, CEO of Protocol 46. “They face the same risks of a breach and the same compliance requirements as large companies, but with far fewer tools and solutions available at an affordable cost.”
The combat veterans who founded Protocol 46 have been working in cyber intelligence in American defense for more than 15 years. They have experienced the changes in cyber defense firsthand. Threats come faster. Hostile actors are more sophisticated. American small and medium-sized businesses are their top target. Those businesses hit the sweet spot for cyber criminals: they hold the same high-value data as their larger enterprise counterparts, they are least likely to have adequate cybersecurity, and a breach is likely to have the biggest negative ripple effect.
Defense in Depth by Protocol 46 implements the vision of cybersecurity experts who see cyber differently. “We see cybersecurity as a complete battlefield, not just a few points of vulnerability,” explained Eric Ebner, Chief Technology Officer for Protocol 46. The Protocol 46 team applied their military cybersecurity, software development, and intelligence experience to integrate and augment best-in-class solutions (such as antivirus, anti-malware, anti-phishing and firewall) with proprietary technology within one simple platform. The resulting solution is a digital mesh of software, hardware, and secure communications that allow the Protocol 46 SOC to provide 24/7/365 monitoring and threat detection.
“Working with Twin Cities Angels has taught us a great deal about the process of growing a business beyond the start-up stage,” said Mr. Schue. “The process of developing a relationship with an investor group has been a valuable experience. Twin Cities Angels’ investment in Protocol 46 enables us to reach a much broader audience in the SMB market, and we look forward to their continued partnership and guidance.”
“We’re excited to be working with the outstanding people at Protocol 46,” said John Alexander, founder and Chairman of TCA. “This is a great investment for our group, and we are looking forward to Protocol 46’s rapid expansion to serve the needs of small and medium businesses.”
About Twin Cities Angels: www.TCAngels.com
Twin Cities Angels is a formal organization for entrepreneurially-minded member angel-investors. TCA members have a mutual interest in having a high degree of personal involvement and interaction in angel investing. All members are accredited investors with significant industry or functional expertise to contribute to the group. TCA is principally interested (but not exclusively) in relatively early-stage companies where the organization’s members can lead or participate in the formative stages of a successful business. Based on their individual and collective expertise, TCA members are also committed to the organization’s mission of mentoring new companies by sharing their successful work experience and proven business judgment. TCA’s investment and market focus is based on the members’ professional expertise, including but not limited to medical technology (devices, diagnostics, pharmaceuticals, biotech, veterinary medicine) and information technology (software, hardware, and IT services). We invest in the upper Midwest 5-state area - within driving distance of the Twin Cities.
TCA seeks deal flow in the greater Twin Cities Area of Minneapolis/St. Paul, the state of Minnesota and within a reasonable distance of the Twin Cities in Wisconsin, Iowa, and the Dakotas. Members are educated in desirable investment skills: how to perform due diligence, deal flow creation, legal aspects of investing, term sheet key terms, the venture industry, technologies and other areas of specific interest to angel investors. The membership-lead organization convenes regularly to meet with pre-screened companies regarding potential investments.
More information about the Twin Cities Angels is available at www.TCAngels.com or