cybersecurity training platform immersive labs closes $75m series c led by insight partners

Immersive Labs Secures $75 Million in Series C Funding

Immersive Labs, a cybersecurity skills training platform for corporate teams, has successfully completed a $75 million Series C funding round. The investment was spearheaded by Insight Partners, with participation from Menlo Ventures, Citi Ventures, and existing investor Goldman Sachs Asset Management.

Expansion Plans and Market Opportunity

The newly acquired capital will be strategically allocated to broaden Immersive Labs’ reach within the U.S. market. This expansion is fueled by the heightened awareness of cyberthreats resulting from the widespread shift to remote work environments following the pandemic.

Established in 2017, Immersive Labs currently employs 200 individuals across its dual headquarters in Bristol, U.K., and Boston, U.S. The company anticipates increasing its workforce to over 600 employees within the next two years.

Further expansion is planned into new territories throughout the APAC region and Europe.

Cyber Workforce Optimization Platform

Immersive Labs’ platform, focused on “Cyber Workforce Optimization,” provides organizations with crucial board-level metrics and benchmarking capabilities. These tools are designed to assess the effectiveness of cybersecurity skills within the company.

To date, the company has raised a total of $123 million in venture capital funding.

Notable Clients and Growth

HSBC, Vodafone, and the NHS are among Immersive Labs’ prominent clientele. The company reports experiencing growth exceeding 100% year-over-year.

CEO’s Vision for Cybersecurity

James Hadley, CEO and founder of Immersive Labs, emphasized the evolving nature of cybersecurity. He stated, “Cyber risk is increasingly impacting numerous business functions, and cybersecurity expertise should extend beyond dedicated technical teams.”

“A comprehensive approach requires engaging all personnel, from software developers to the CEO, in addressing this widespread organizational challenge. This necessitates identifying and validating skills across a broader employee base.”

Insight Partners’ Perspective

Ryan Hinkle, managing director at Insight Partners, commented on Immersive Labs’ strong market position. He noted, “Immersive Labs has demonstrated significant global customer and revenue growth in recent years, establishing itself as a leader in the rapidly expanding cyber skills sector.”

“The company’s leadership, innovative product, growing market, and high user engagement position it for continued success in the cyber readiness market.”

Strategic Alignment and Future Aspirations

In an interview, Hadley explained the rationale behind choosing Insight Partners. He highlighted their expertise in enterprise B2B sales, targeting CIOs and CEOs.

“We aim to become the next Darktrace, a successful U.K. cybersecurity company,” Hadley added, outlining the company’s ambitious goals.

Comparison to Darktrace

The comparison to Darktrace is noteworthy. Both companies emerged from the CYLON cyber accelerator and share common investors.

However, Immersive Labs secured $75 million in its Series C round, a milestone Darktrace did not achieve until its Series D funding. Darktrace is now a publicly traded company in London, valued at £1.7 billion.

The Platform’s “Flywheel Effect”

Hadley, a former security researcher and trainer at GCHQ, conceived the idea for the cyber skills platform based on his experience in cyber training.

He attributes the platform’s success to a growing recognition that cybersecurity is a business-wide responsibility, not solely the domain of IT specialists.

“Cybercrime is projected to escalate significantly in the coming years, driven by the increasing prevalence of ransom payments. We are incorporating analytics to evaluate decision-making during crises, which is resonating strongly with companies across all industries,” Hadley explained.

Commitment to Social Impact

Immersive Labs is a significant supporter of TechVets, a charity dedicated to providing free cybersecurity training to UK military veterans, enabling them to transition into new careers.

The company’s platform is designed to measure decision-making during a crisis, which is resonating well with companies.