Zorus Raises $9M; Plans Detection and Response Security Solutions for MSPs

Zorus has raised $9 million in Series A funding, formed a new board featuring Datto and Akamai veterans, and announced plans to extend its security platform from filtering to “extensive detection and response security solutions,” the MSP-focused security company disclosed today.

Zorus CEO Ian McChord

Zorus CEO Ian McChord

Among the key factoids to note:

Datto veteran Ian McChord has led Zorus as CEO since October 2020. Zorus founder Greg Gage, another Datto veteran, is CTO. The current Zorus SaaS-based platform includes A.I.-focused web filtering and productivity monitoring software sold through MSPs. Looking ahead, Zorus plans to add detection and response security solutions to the platform, though a timeline for the capabilities was not disclosed.

In a prepared statement about the business direction, Zorus CEO Ian McChord said:

“Today’s I.T. infrastructure requires an endpoint-first approach. Security starting at the user provides a better level of protection than previous router- or network-based solutions. What we can do to protect users and their businesses on top of the Zorus filtering agent is almost limitless.”

Detection and Response for MSPs: Emerging Security Options

The Zorus funding surfaces during an EDR (Endpoint Detection and Response), MDR (managed detection and response) and XDR (eXtended Detection and Response) land grab in the MSSP and MSP markets. Among the factoids to note:

MDR and EDR Security Market Research and Growth Forecasts

The market for managed detection and response (MDR) security will reach $2.2 billion by 2027, which represents a 16.7% CAGR (compound annual growth rate) from 2021, according to Infinity Business Insights. ChannelE2E believes that’s a conservative forecast.

Meanwhile, the market for endpoint detection and response (EDR) security will reach $8.2 billion by 2028, which represents a 20.8 CAGR from $1.8 billion in 2020, according to Reports and Data.

Disclosure: Author Joe Panettieri is a member of Channel Angels, an angel investor peer group that invested in a Zorus seed round in 2020.

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4 Comments

Comments

    Colin Knox:

    It’s awesome to see the increased flow of venture capital in innovative technologies focused on the IT channel. The more investment made, the more innovation that MSPs can leverage to best service and secure their clients.

    Joe Panettieri:

    Hey Colin: Always great to hear from you. I’ll state the obvious: Feels like deal flow involving MSP-oriented software funding remains very strong. Still, I often don’t know the valuations and multiples behind funding deals. The sector still feels hot. Though I do think in some cases SaaS valuations are overheated. But then again, I’ve been saying that (incorrectly) for about four years…
    -jp

    Colin Knox:

    Funding opportunities remain strong, indeed. Perhaps there’s a panel to be had with some recently funded channel-focused tech startups to discuss the flow of money, how they are valued, and the stories they are creating that lead to high-conviction investments.

    Joe Panettieri:

    In early 2022 🙂

    -jp

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