Cybersecurity company ZeroFox raised $40 million during a Series C investment round, the Baltimore-based company announced Wednesday.
The investment was led by Redline Capital Management and Silver Lake Waterman. It also included New Enterprise Associates, Highland Capital Partners and Core Capital.
ZeroFox provides social media protection, an emerging area where the company has been one of the first movers in the market.
“I think we provide a similar level protection to social media as email does,” said James Foster, chairman and CEO of ZeroFox.
The company has seen rapid expansion and the Series C round helped it get funding in place to continue to scale out globally.
“We already have a great platform and product, we already have a great team, now we’re just going to continue to scale the product,” Foster said.
He hopes the new investors help add to his “ecosystem” of contacts as the company expands into new markets.
Foster also wanted to find partners whose interests were aligned with the companies. He compared the investment process to hiring new employees.
“In an investor I look to a couple of things,” he said. “Someone who has our shareholder interests aligned. That’s probably goal No. 1. Our interests are long term.”
The deal with Redline Capital included adding Alastair Cookson, a partner at Redline, to ZeroFox’s board of directors. But Foster said that when investors are aligned with the company’s goals, control can mean less.
“I’ve been lucky to have a board that’s aligned,” he said. “I think when you have a board that’s misaligned, when you’ve got half (the) board members that want to take it one direction and half that want to take it another direction, that’s when control is important.”
But that’s something that other entrepreneurs can miss, he added.
“I think maybe a lot of young entrepreneurs get that wrong,” Foster said. “It’s really important to make sure everybody has the same goals.”
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