Introduction to CrowdStrike Falcon Fund
The CrowdStrike Falcon Fund, established in August 2019, is a strategic early-stage investment fund founded by cybersecurity leader CrowdStrike in partnership with venture capital firm Accel. The fund was initiated with an initial capital of $20 million, aimed at investing in seed and Series A startups that develop applications for the CrowdStrike Falcon platform. This move marked CrowdStrike's formal entry into the venture investment landscape.
Mission and Objectives
The mission of the CrowdStrike Falcon Fund is to strategically invest in innovative cybersecurity and IT startups that leverage the capabilities of the CrowdStrike Falcon platform. The fund aims to foster an ecosystem of industry leaders by supporting startups that enhance security and IT operations for organizations. This is achieved through co-investment and strategic partnerships that drive innovation in cloud-native security applications.
Connection to CrowdStrike
The Falcon Fund is deeply connected to CrowdStrike's broader business strategy. By investing in startups that integrate with the Falcon platform's open API architecture, the fund seeks to enrich the CrowdStrike ecosystem and accelerate the commercialization of innovative solutions. The fund also supports CrowdStrike's strategic objective of enabling external developers and partners to build products that enhance the security offerings available on the CrowdStrike Falcon platform.
Through the Falcon Fund, CrowdStrike positions itself not just as a leader in cybersecurity solutions but also as a catalyst for industry collaboration and technological advancement. The fund acts as a co-investor and strategic partner, providing selected vendors with integration, marketing, and go-to-market support, thereby driving broader adoption and innovation within the cybersecurity investment landscape.
Investment Thesis and Strategic Focus
The CrowdStrike Falcon Fund's investment thesis is centered on fostering a robust cybersecurity and technology ecosystem. This is achieved by investing in companies with unique capabilities that enhance or integrate with the CrowdStrike platform, creating strategic value for shared customers and accelerating market traction.
Sectors and Technologies Prioritized
The Falcon Fund prioritizes investments in sectors such as cybersecurity, artificial intelligence (AI), and cloud computing. These areas are integral to the fund's goal of shaping the cybersecurity landscape by supporting technology disruptors that focus on endpoint protection, cloud workload security, identity management, and data protection at scale.
AI Employees Are Coming. This Startup Wants To Keep Them Secure.
Source: Forbes →In line with this focus, the fund supports companies like the featured startup in the Forbes article, which aims to secure AI-driven operations, demonstrating the fund's commitment to advancing innovative security solutions.
Evaluation Criteria for Investments
The Falcon Fund employs a strategic co-investment model, partnering with lead investors to identify companies that can integrate into the CrowdStrike Falcon platform. Key evaluation criteria include the company's potential to enhance platform capabilities, customer base synergy, and the ability to accelerate product adoption through CrowdStrike's resources.
Strategic Approach Examples
Recent investments include firms such as Corelight, Cribl, and JumpCloud, each contributing to enhanced threat detection, workload access, and security orchestration. These investments align with CrowdStrike's thesis of protecting critical areas of risk, with the added benefit of leveraging CrowdStrike's extensive customer network and development resources to drive rapid market entry and product adoption.
Overall, the CrowdStrike Falcon Fund is a strategic venture platform that not only accelerates innovation but also drives ecosystem growth, customer retention, and long-term margin expansion. However, there is potential for improvement in diversifying investment stages and exploring emerging technologies beyond the current focus areas to capture a broader market segment.
Portfolio Composition and Sector Expertise
The CrowdStrike Falcon Fund, managed in partnership with Accel, maintains a strategic portfolio with a pronounced focus on cybersecurity and related sectors. With at least 38 investments and 8 exits by early 2025, the fund has positioned itself as a key player in the IT security landscape. The fund's investment strategy spans from early to late-stage rounds, typically co-investing alongside lead investors and offering strategic support through the CrowdStrike Marketplace. **Portfolio Composition:** The fund's investment portfolio includes a diverse range of companies across several sectors and geographic regions: Geographically, the fund's investments are predominantly in the United States, followed by notable allocations in Israel and Ireland. **Geographical Distribution:** - United States: 14 companies - Israel: 4 companies - Ireland: 2 companies The fund's expertise in cybersecurity and IT sectors significantly shapes its investment choices. This expertise enables the fund to identify and capitalize on emerging trends and innovative technologies within these domains. In the realm of cybersecurity, hacking techniques continue to evolve, presenting both challenges and opportunities for companies within the fund's portfolio. For instance, the rise of sophisticated hacking techniques, such as those allegedly used by organized crime syndicates to manipulate poker games, underscores the need for advanced cybersecurity measures. This context reflects the fund's investment in companies like ThreatWarrior and Salt Security, which focus on advanced threat intelligence and API protection. Overall, the CrowdStrike Falcon Fund remains a strategic co-investor, providing crucial support for the growth of its portfolio companies in a rapidly evolving security landscape.
Investment Criteria
The CrowdStrike Falcon Fund is strategically designed to invest in early-stage cybersecurity startups that leverage the CrowdStrike Falcon platform and APIs. The fund focuses on companies addressing significant security or IT challenges and offering strong market potential. This aligns with CrowdStrike's strategic goals of expanding its ecosystem and enhancing its platform's capabilities. The fund's investment criteria emphasize startups that solve significant problems impacting numerous organizations. For instance, a company like Seraphic, which received a $29 million Series A investment, exemplifies the fund's focus on solutions that integrate seamlessly with the CrowdStrike Falcon platform. While CrowdStrike focuses on cybersecurity, they remain open to broader IT challenges, provided the solutions utilize their Falcon platform. This approach ensures startups can offer their applications via the CrowdStrike Store, reaching a wide customer base. Entrepreneurs seeking investment should ensure their product aligns with these criteria and demonstrates the potential for significant market impact.
Track Record and Notable Exits
CrowdStrike Falcon Fund has established itself as a significant player in the venture capital landscape, particularly in cybersecurity and related sectors. Managed in partnership with Accel, the fund focuses on global, cross-stage investments, leveraging CrowdStrike's expertise and network to support high-potential startups. While detailed financial performance metrics such as IRR are not publicly available, the fund's track record is underscored by its active investment strategy and successful exits. ### Key Performance Metrics and Successful Investments The CrowdStrike Falcon Fund has made 38 investments to date, focusing on cybersecurity, cloud infrastructure, and adjacent technologies. The fund has demonstrated an ability to syndicate with top-tier investors, which enhances the credibility and potential of its portfolio companies. ### Impact of Notable Exits The fund's reputation is further bolstered by its successful exits, which include Cybersixgill, Silk Security, and Hubble. These exits not only reflect the fund's strategic investment acumen but also enhance its credibility and attract further investment opportunities. Overall, CrowdStrike Falcon Fund's track record showcases a robust investment strategy with a focus on high-growth sectors, strategic partnerships, and successful exits that contribute to its growing reputation in the venture capital community.Team Composition and Decision-Making
The CrowdStrike Falcon Fund is spearheaded by George Kurtz, CEO of CrowdStrike, and Sameer Gandhi, Partner at Accel. As managing partners, they lead the fund with strategic insight and venture capital expertise. George Kurtz brings a wealth of industry knowledge, leveraging his position as CEO to identify startups that can benefit from CrowdStrike's robust architecture and data ecosystem. Sameer Gandhi, with his extensive venture capital background, is instrumental in guiding investment decisions, particularly focusing on early-stage security startups.
Decision-Making Process
The Falcon Fund operates independently but is intricately managed by CrowdStrike with Accel as a partner. The decision-making process is strategically aligned with investing in cybersecurity startups that integrate with the CrowdStrike Falcon platform. Key elements include:
- Investment Criteria: Startups must address significant security problems and have a strong market opportunity. They should also demonstrate integration with CrowdStrike’s Falcon platform.
- Evaluation Process: Startups undergo a rigorous review focusing on innovation, relevance to CrowdStrike’s ecosystem, and product-market fit. Due diligence assesses technical, business, and strategic compatibility.
- Co-Investment Strategy: The fund typically co-invests with other lead investors, focusing on seed to Series A stages, but is open to cross-stage opportunities, especially with Falcon Fund II.
Team Expertise and Experience
The combined expertise of Kurtz and Gandhi is pivotal to the fund's success. Kurtz's industry leadership ensures strategic alignment with CrowdStrike’s goals, while Gandhi’s venture capital insights facilitate informed investment decisions. This synergy allows the fund to effectively leverage opportunities and expand CrowdStrike’s product suite through strategic investments.
Value-Add Capabilities and Support
The CrowdStrike Falcon Fund offers significant value-add capabilities to its portfolio companies, extending beyond mere financial investment. This support is pivotal in accelerating growth and fostering innovation among early-stage and cross-stage security startups.
Resources and Networks Provided
CrowdStrike Falcon Fund enables startups to tap into its extensive global customer ecosystem through the CrowdStrike Store, a unified marketplace for security applications. This access expedites their go-to-market strategies, providing immediate exposure and distribution capabilities without the need for separate agents. Moreover, startups benefit from integration and technical resources, allowing them to build on the Falcon platform’s cloud-native architecture while leveraging real-time telemetry.
Examples of Support Beyond Investment
Portfolio companies like Corelight, Cribl, JumpCloud, Tines, Vanta, and Abnormal Security demonstrate the fund’s value-add. These companies have effectively utilized CrowdStrike integrations, co-marketing efforts, and access to endpoint telemetry to drive rapid growth and product innovation.
Mentorship Opportunities
Startups also benefit from shared expertise and ecosystem access. The Falcon Fund provides executive guidance and the ability to collaborate with leaders in security and IT operations, enhancing strategic development and market positioning.
Through strategic co-investment, often in partnership with Accel, the Falcon Fund acts as a long-term ally, offering capital and strategic support. By featuring applications in the CrowdStrike Store, startups gain enhanced marketplace exposure, bolstering customer adoption and ecosystem credibility.
In conclusion, the CrowdStrike Falcon Fund provides a comprehensive suite of value-add capabilities that includes deep integration, technical enablement, and strategic visibility—supporting startups in ways that go beyond traditional venture capital.
Application Process and Timeline
The CrowdStrike Falcon Fund is a strategic investment initiative designed to support innovative startups in the cybersecurity domain. Entrepreneurs seeking investment from this fund must navigate a structured application process to align with the fund's criteria and interests. ### Application Process for CrowdStrike Falcon Fund 1. **Visit the Falcon Fund Page**: Start by visiting the Falcon Fund section on the CrowdStrike website. This is where you will find detailed information about the fund and the application process. 2. **Complete the Application Form**: Fill out the online application form with comprehensive details about your company, including product information, market opportunity, and how your solution integrates with the CrowdStrike Falcon platform. 3. **Submit for Review**: After completing the form, submit your application. CrowdStrike will review your submission and will contact you if your startup is selected for further consideration. 4. **Engagement with CrowdStrike**: If selected, your startup will receive investment and become part of the CrowdStrike Store ecosystem, gaining technical and go-to-market support. ### Typical Timeline for Decisions - **Initial Review**: 2-4 weeks after submission. - **Follow-Up Communication**: 4-6 weeks for further engagement if selected. - **Final Decision and Investment**: 8-12 weeks from initial application submission. ### Guidance for Applicants To align with the Falcon Fund's interests, entrepreneurs should ensure their applications highlight: - **Problem Significance**: Clearly articulate the significant security issue your solution addresses. - **Market Opportunity**: Demonstrate a large, scalable market with strong ROI potential. - **Investor Backing**: Show existing interest from other lead investors, ideally in early-stage rounds. - **Platform Integration**: Explain how your solution utilizes the CrowdStrike Falcon platform APIs and endpoint agent. - **Team Experience**: Highlight the experience, motivation, and capability of your founding team. ### Data Visualization: Application Timeline For more information and to apply, visit the [Falcon Fund page](https://www.crowdstrike.com).Portfolio Company Testimonials
The CrowdStrike Falcon Fund has played a pivotal role in the growth and success of numerous portfolio companies by providing strategic support and resources. These companies consistently highlight the rapid deployment, ease of integration, and effective go-to-market strategies enabled by the Fund.
Direct Quotes from Portfolio Companies
Portfolio companies often express their appreciation for the Fund's robust support. Jennifer Czaplewski, VP of Security Operations at Target, remarked, "CrowdStrike really checks all of the boxes for things that we're looking for. They've been a good strategic partner."
Impact on Growth and Success
Many portfolio companies have benefitted significantly from the Fund's support. For instance, JumpCloud has leveraged the Fund's resources for centralized identity management and rapid onboarding, while Corelight has praised the open platform and quick integration with Falcon. Similarly, Tines experienced accelerated customer adoption through CrowdStrike’s marketplace, showcasing the Fund's impact on expanding market reach.
Variety of Perspectives
The diverse range of companies within the portfolio highlights the Fund's adaptability and strategic value. Automox, a company focused on patch and endpoint management, noted rapid deployment through the Falcon platform. Meanwhile, Cribl appreciated improved access to enterprise customers, further echoing positive experiences shared by other portfolio companies.
In summary, the testimonials from CrowdStrike Falcon Fund's portfolio companies underscore the strategic and operational benefits they receive, from rapid market access to enhanced integration support. This comprehensive support not only boosts their growth but also positions them for long-term success in the competitive cybersecurity landscape.
Market Positioning and Differentiation
The CrowdStrike Falcon Fund is strategically positioned as a leading venture capital arm within the cybersecurity landscape, focusing on accelerating the growth of emerging cybersecurity and adjacent technology vendors. Its collaboration with Accel and a robust $100 million venture vehicle, Falcon Fund II, underscores its significant market presence and strategic investment approach. ### Unique Value Proposition The Falcon Fund stands out through its strategic investment model, which emphasizes ecosystem integration and platform synergy. Unlike traditional venture capital funds that primarily seek financial returns, the Falcon Fund aims to generate strategic value by enhancing the CrowdStrike ecosystem. This is achieved through investments in companies that offer differentiated capabilities directly beneficial to CrowdStrike customers, such as security, data, identity, and observability solutions. ### Competitive Advantages 1. **Size and Scope**: With Falcon Fund II being five times larger than its initial fund, the Falcon Fund has established itself as a major cross-stage investor, enabling it to support a broader range of companies and technologies globally. 2. **Strategic Focus**: The fund targets investments that align with the CrowdStrike Falcon platform, allowing for seamless integration and enhanced customer value. 3. **Co-Investment Model**: By acting as a strategic co-investor rather than a lead investor, the Falcon Fund efficiently leverages partnerships and industry relationships, maximizing its impact with minimal lead responsibilities. 4. **Ecosystem Leverage**: Portfolio companies benefit from access to the CrowdStrike Marketplace and integration resources, facilitating rapid go-to-market strategies and expanded access to CrowdStrike’s extensive customer base. 5. **Platform Synergy**: Investments in companies like Corelight, Cribl, JumpCloud, and Tines exemplify the fund’s focus on enhancing the Falcon platform’s capabilities and building a robust cybersecurity ecosystem. ### Challenges Despite its strengths, the Falcon Fund faces challenges such as maintaining its strategic focus amid a rapidly evolving cybersecurity landscape and ensuring that its investments continue to align with CrowdStrike’s long-term objectives. ### Competitive Matrix In conclusion, the CrowdStrike Falcon Fund's strategic investment approach and ecosystem-centric model uniquely position it as a leader in the cybersecurity venture capital landscape, offering both financial and strategic benefits to its portfolio companies.Contact and Next Steps
The CrowdStrike Falcon Fund is a venture capital initiative focused on investing in innovative security and IT companies. Entrepreneurs interested in engaging with the Falcon Fund can follow the steps below to initiate contact and explore potential investment opportunities.
Contact Information
- Fund Type: Venture Capital Firm
- Region: North America
- Country: United States
- Main Address: 150 Mathilda Place, Sunnyvale, CA 94086, United States
How to Initiate Engagement
- Submit an Application: Begin by submitting your company’s application through the official Falcon Fund I application page: Apply Here.
- Contact for Inquiries: For partnership or investment-related inquiries, email the alliances team at alliances_operations@crowdstrike.com.
Next Steps for Entrepreneurs
To enhance your engagement with the Falcon Fund, ensure your company aligns with the fund’s criteria:
- Present a differentiated solution in cybersecurity or adjacent IT markets.
- Demonstrate strong team expertise and address significant customer problems.
- Show clear market opportunity and have existing lead investor interest.
- Integrate with or leverage the Falcon Platform APIs and universal endpoint agent.
The Falcon Fund co-invests as a strategic partner and provides portfolio companies with access to CrowdStrike’s ecosystem, including integration, marketing, and go-to-market support.
