ReliaQuest Secures $500M Funding to Enhance Agentic AI Security Solutions

ReliaQuest, a security operations firm known for sponsoring a college football bowl game, has successfully secured $500 million in funding. This capital will be directed toward enhancing their agentic AI-driven cybersecurity automation and expanding their international footprint.

See Also: Capturing the cybersecurity dividend

The recent funding round has elevated the financial valuation of the Tampa, Florida-based company to $3.4 billion, a significant leap from its previous valuation of $1 billion reported in December 2021, following an investment from KKR. ReliaQuest is currently generating over $300 million in annual recurring revenue, experiencing a growth rate exceeding 30% year-over-year, and operates profitably.

According to Brian Murphy, ReliaQuest’s founder and CEO, the extensive amount of data available to enterprise security teams and the rapidly evolving threat landscape necessitate swift and efficient threat containment strategies. “CISOs need a way to contain threats within minutes without added cost or technical overhead, leveraging the latest innovations in agentic AI,” Murphy stated. He emphasized that this investment marks a pivotal moment in the company’s growth trajectory.

Since its inception in 2007, ReliaQuest has grown to employ approximately 1,100 staff and has raised over $830 million across four rounds of funding. Notably, the firm secured $300 million in growth financing in August 2020 aimed at accelerating the development of its cybersecurity intelligence platform. Additionally, ReliaQuest has sponsored a college football bowl game in Tampa since 2022.

The company’s GreyMatter platform utilizes agentic AI models capable of autonomous operation and learning, thereby automating security processes and significantly reducing the time required to contain potential threats. Clients have reportedly achieved investigative efficiencies up to 20 times faster and with a 30% improvement in accuracy through the automation features of GreyMatter.

“By integrating AI and automation into GreyMatter, ReliaQuest has positioned itself as a leader among software vendors managing complex security operations for large enterprises,” commented Kirk Lepke, an EQT Partner. Despite requests for interviews, ReliaQuest did not respond to Information Security Media Group.

Distinguishing Factors in ReliaQuest’s Security Operations Strategy

The technology developed by ReliaQuest is capable of threat containment within less than five minutes, allowing security teams to concentrate on strategic business functions rather than repetitive tasks. GreyMatter fosters the use of existing and future technology stacks, enhancing visibility and automation driven by AI, thereby enabling security teams to detect, investigate, contain, and respond to cyber threats across various technologies.

KKR Partner Stephen Shanley noted, “Investing in ReliaQuest in 2020 was based on recognizing its vast potential amid a surge in cyberattacks and the increasing complexity faced by cybersecurity teams managing numerous tools with limited resources.” Over the years, ReliaQuest has evolved with its cutting-edge AI-driven software and a keen focus on innovation and organizational culture.

In the period since its last funding, ReliaQuest acquired Digital Shadows for $160 million in June 2022, aiming to enhance its security operations platform with threat intelligence and attack surface management. This strategic acquisition was designed to provide customers with deeper insights and context regarding the threats facing their networks, endpoints, or cloud environments.

FTV Capital Partner Kyle Griswold highlighted ReliaQuest’s consistent exemplary performance and ability to serve many of the world’s largest enterprises, stating that their AI-driven platform distinctly empowers customers with effective cybersecurity solutions, ultimately advancing automation and operational efficiency along with measurable results.

In February, Forrester acknowledged ReliaQuest as a strong performer in managed detection and response services, commending the firm for enhancing the security analyst experience and incorporating generative and agentic AI capabilities into GreyMatter. However, Forrester also pointed out certain deficiencies in ReliaQuest’s offerings related to system criticality, vulnerability prioritization, and security posture management.