Huntress, which offers an endpoint security service to IT resellers, raises $40M Series B led by JMI, bringing its total raised to $60M
Context & Ripple Effects
This round is one rung in a fast-climbing ladder: Huntress raised an $18M Series A led by ForgePoint Capital in early 2020 while expanding into new market segments and geographies, and this $40M JMI-led Series B roughly doubles its lifetime capital to $60M within about a year. The through-line is a channel-first go-to-market — an endpoint security service sold through IT resellers rather than directly to enterprises.
First-order effects
- JMI's lead gives Huntress fresh capital and an enterprise-software specialist investor at the exact moment the CEO says funds will go toward new products aimed at small businesses — deepening its hold on the reseller channel that distributes its endpoint service.
- Competitors in threat detection get a well-funded benchmark: months later Hunters raised a $30M Series B led by Bessemer for extended detection and response, part of the same wave of capital flowing into SMB- and mid-market-focused security platforms.
Second-order effects
- IT resellers gain leverage from having more funded vendors competing for their shelf space, pushing providers like Huntress to bundle services, improve margins for partners, or add product lines to stay sticky.
- Enterprise-oriented security vendors face pressure to build downmarket offerings or partner programs of their own, since Huntress's model shows SMB demand can be reached economically through resellers instead of direct sales teams.
Third-order effects
- The pattern holds through later rounds — a $60M Series C led by Sapphire Ventures in 2023 and then a $150M Series D at a $1.5B+ valuation in 2024 — pointing toward SMB security consolidating around channel-distributed managed platforms rather than point tools.
- If reseller-distributed managed security keeps outgrowing direct enterprise sales in this segment, procurement power shifts to the MSPs who choose which platform thousands of small-business endpoints run on.
The trend: Cybersecurity is splitting into a managed-platform layer sold through IT resellers to SMBs, with venture capital racing to fund the vendors that own those channel relationships.