Bootstrapped Thinkst Canary Hits $20M ARR - No VC Funding

Thinkst Celebrates a Decade of Cybersecurity Innovation with Canary

This month marks the 10-year anniversary of Thinkst, a cybersecurity firm, and its flagship product, Canary. The company initially developed Canary after observing that organizations frequently invested substantial funds in security solutions, yet often remained unaware of breaches for extended periods.

Addressing a Critical Gap in Cybersecurity

Thinkst aimed to create a proactive security measure – a digital tripwire – capable of identifying hackers during an attack. By all indications, this objective has been successfully achieved.

Sustainable Growth and Financial Health

Over the last ten years, Thinkst has expanded to a team of approximately 40 employees, primarily comprised of developers and engineers. Notably, the company has maintained its independence without seeking external funding. Founder Haroon Meer shared with TechCrunch that the company is projected to achieve significant profitability this year, with an annual recurring revenue of $20 million – a near doubling of its 2021 revenue.

A Contrarian Approach in a Fast-Paced Industry

This progress is particularly noteworthy given the current cybersecurity landscape, which is often characterized by rapid expansion and venture capital investment.

Customer Focus as a Key to Success

Haroon Meer, Thinkst’s founder and CEO, based in Cape Town, South Africa, explained to TechCrunch that the company’s success stems from a dedication to its customers and their needs. This includes delivering a product that consistently performs as promised, and avoiding overly aggressive growth strategies.

Meer highlighted that 60% of their initial customers remain with the company today, demonstrating the effectiveness of this approach.

Prioritizing Sustainable Expansion

“We aren’t deliberately limiting growth, but we also avoid the reckless ‘growth at all costs’ tactics,” Meer stated. “Delivering on commitments is paramount, and sustainable growth will naturally follow.”

The Introduction of Canary Hardware

In 2015, Thinkst introduced the Canary hardware product. Inspired by the historical use of canaries in coal mines as early warning systems, this product is designed to detect and alert organizations to the presence of hackers on their networks.

How Canary Functions as a Deceptive Technology

Canary operates as a honeypot, enticing malicious actors – including hackers and penetration testers – with the illusion of accessible resources. For example, a hacker might believe they’ve gained access to a Windows PC with shared files, a server containing sensitive data, or a critical company service. Upon accessing the Canary, an immediate alert is triggered, enabling the organization to respond swiftly to the breach.

Reducing Dwell Time and Mitigating Damage

The primary function of Canary is to minimize the time hackers spend undetected within a network, limiting their ability to steal data, install malware, or inflict other damage. Verizon’s latest data breach report indicates that hackers typically remain undetected for around 24 days.

Canary Tokens: A Free Public Resource

Thinkst also provides Canary Tokens, a free and publicly available tool. This allows anyone to deploy seemingly valuable items – such as passwords, documents, or credit card numbers – in a secure location. Any access or opening of these tokens triggers an immediate alert, indicating a potential compromise.

Ease of Deployment and Effectiveness

“We were fortunate to develop a product that is remarkably easy to deploy correctly,” Meer explained. “Whether it’s designed to blend in or stand out, it effectively captures attackers.” Hackers, driven by efficiency, are likely to exploit any perceived opportunity to accelerate their objectives.

Real-World Impact and Customer Testimonials

“We regularly receive feedback from customers stating that Canary has saved their organizations, or was the sole detection method during a penetration test,” Meer shared.

Organic Growth Driven by Customer Success

These success stories are the driving force behind the company’s organic growth, according to Meer. Thinkst does not employ an outbound sales team, relying instead on word-of-mouth referrals and repeat business from satisfied customers.

A Balanced Perspective on Venture Capital

While Thinkst has not pursued external funding, Meer expressed respect for the venture capital industry and its insights. He acknowledged that some companies require substantial investment to achieve their goals, but maintained that funding is “not an insurmountable barrier to progress.” He emphasized the importance of prioritizing product functionality and customer satisfaction as cornerstones of successful business.

Strategic Growth and Future Ambitions

“Our focus is on building a business that remains attractive for potential investment or acquisition,” Meer stated. “A strong business can always seek funding when the time is right.”

Looking Ahead: Expanding Canary’s Reach

Meer articulated the company’s ambitions, stating, “We believe every organization should deploy at least five Canaries.” While some companies utilize a small number, others have implemented hundreds or more. “We could pursue various avenues to increase revenue, but we believe our current approach – offering a quality product at a fair price – is sufficient for continued growth.”

“We’ve reached $20 million in revenue, but we don’t consider that our limit,” Meer concluded.