CEO Case Study: Tom Byrnes ThreatSTOP

Scaling Strategies The Protean Business Model

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Corporate Overview

Year Founded 2006 Science Experiment, 2009 Company Company Overview ThreatSTOP is a real-time IP Reputation Service that enables existing hardware and network infrastructure to block criminal malware (botnets, Trojans, worms etc.). It is a cloud-based service that protects the user's network against the most serious information security problem today—malware designed to steal valuable data perpetrated by organized criminals and state actors (known as Advanced Persistent Threats).

Product(s) & Delivery Dynamically updated block lists, multi-platform rule management and reporting, via SaaS

Business Model Annual Subscription tied to # and type of network devices targeted Capitalization DHS SBIR, F&F & Angel funded; no debt. Key Milestones Achieved

Built Rev 1.0 and 2.0 solution Partnerships with Juniper, Infoblox and BigSwitch Networks

Company: ThreatSTOP Sector: Now: Security.

Future: SDN. Primary Value Prop: Stop Botnets Stealing from you! (AKA, taking the P out of APT.) Secondary Value Prop: Centralized SaaS management and reporting of network security Company Stage: Phase 4/5 – Early Growth Key Competition: Ignorance and Apathy, SpyEye, Damballa, Cisco Bot Filter, Checkpoint Botnet Defense Blade, Homegrown. Partners: Juniper, Infoblox, BigSwitch, Vyatta (Brocade). Acc-IT Service Modules: Marketing; Strategic Sales; Business Strategy & Planning; Financing

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pro·te·an   /ˈprōtēən/ Adjective

1. Tending or able to change frequently or easily. 2. Able to do many different things; versatile.

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Save $ and Time. More Stakeholders => Leverage their networks

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Acceleration Strategy: Only build what doesn’t exist Partner for everything else, be Symbiotic

Data Sources OEM Partners

Service Providers

Development &

Ops

Strategic Approach

Make everyone a stakeholder Key principals of allies are also shareholders

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•  “Those friends…” •  Shared stake in success •  Drives success for all

parties

Symbiosis

•  Work together on key initiatives

•  Be useful •  Become Necessary

Co-Opt

•  Work with people and companies

•  Get to know them •  Find aligned interests

Collaborate

Issues & Mitigation

Dealing w/ Perception, Managing Multiple Relationships Hardest thing is to find the RIGHT PEOPLE •  Most people, especially Mid-Career, grew up on competition, not cooperation •  Soft rather than hard skills •  Hard to assess until in the mix •  Everyone is different •  “Conflict of Interest”

•  People and companies change

Small steps, Iterate, make mistakes early and cheap •  Multiple iterations, especially in Sales and Marketing •  Always have a backup plan. •  Change of exec mgt/strategy: reevaluate.

•  Constant contact.

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Results & Learning

Focus, Focus, Focus: “Do what you do, do well” Able to grow without a lot of capital and resources •  Adapted business model and go-to market multiple times

–  Could afford to make mistakes due to low burn

•  Didn’t blow a bunch of VC cash figuring it out: Insiders still own company. •  2013 set to be breakout year, and now ready for capital.

Forget “battling business units”, it’s a connected world, embrace and extend. •  Listen to your gut. •  Remember, People are not parts

–  Advantage: They can surprise you

–  Disadvantage: you can’t fix the broken ones.

•  Protean businesses have less inertia.

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