How Huntress Hit $100M ARR by Revolutionizing SMB Cybersecurity Globally
Who is Kyle Hanslovan?
Kyle Hanslovan, the co-founder and CEO of Huntress, started his career as a hacker for the U.S. government, working with the NSA on cyber defense operations. Driven by a desire to protect underserved small and mid-sized businesses from cyber threats, he launched Huntress to provide affordable cybersecurity solutions, leveraging his military and cybersecurity expertise to address a significant market gap.
What problem does Huntress solve?
Huntress helps small and mid-sized businesses by providing affordable, enterprise-grade cybersecurity that protects them from hackers who target their digital vulnerabilities.
How did Kyle come up with the idea for Huntress?
Kyle Hanslovan, the co-founder of Huntress, drew inspiration from his background in military and cybersecurity, experiences that honed his skills in reacting to threats faced by national security. Upon entering the commercial sector, he noticed a significant gap: small and mid-sized businesses often had the same cybersecurity threats as larger enterprises but lacked the resources to protect themselves adequately. His keen observation was fueled by his desire to empower the "underdogs," as he had been one himself, which motivated him to create an accessible solution for these neglected markets.
In the initial stages, Kyle engaged in rigorous market research, talking to various business owners to validate his idea. He resisted focusing on the lucrative but crowded market of large enterprise clients, instead confirming his assumption that smaller companies were under attack and unprotected. He fine-tuned Huntress’s offerings based on continuous feedback from potential customers who were often grappling with the complexities of cybersecurity without specialist teams.
However, building for a misunderstood market came with challenges. Convincing investors and early customers required persistence and demonstrating tangible value in cybersecurity for smaller players. By focusing on specific threats and evolving the platform through real-world testing and interaction with the community, Kyle learned the importance of education and transparency. This strategy of guiding potential users through the cybersecurity landscape helped Huntress grow, proving that a focused mission could effectively democratize cybersecurity.
How did Kyle Hanslovan build the initial version of Huntress?
Huntress was built through a blend of careful product development and strategic iterations on cybersecurity needs for small and mid-sized businesses. Initially, the founders identified a gap in the security services available to companies that could not afford comprehensive solutions. They created a minimally viable product focusing on providing endpoint detection and response. The initial prototype was a basic installer that would flag security issues via email, with much of the analysis performed manually. This allowed them to validate their model and gain traction without the overhead of building out a complete tech stack from the start.
Using their backgrounds in cybersecurity and hacking, the team designed a product capable of detecting long-term persistent threats in business networks. Their iterative process took nearly a year to land the first paying customers, yet this slow build allowed them to craft a reliable solution finely tuned for their market's needs. They initially bootstrapped the project, performing security services on the side to finance their development until securing a $750,000 seed funding round years later. The build phase was arduous; challenges included bootstrapping through financial constraints and refining their MVP to consistently deliver promised security assurances to their users.
How did Kyle launch Huntress and get initial traction?
Huntress grew from zero customers with a minimal MVP involving manual processes and email alerts. It took nearly a year to get the first three customers, two of whom paid, while another stayed on a free trial for several years before paying. The early product was extremely minimal to build trust quickly, and growth was driven by education and organic demand rather than paid advertising.
What was the growth strategy for Huntress and how did they scale?
Partnerships
Huntress has significantly leveraged partnerships with managed service providers (MSPs) and the cybersecurity community to expand its reach. They focused on outsourcing IT departments and utilized these partnerships to effectively introduce their cybersecurity solutions to small and mid-sized businesses that may not have in-house security teams.
Why it worked: The partnership model allowed Huntress to effectively scale their sales efforts without a large direct sales force. By tapping into the existing MSP networks, they could reach a broad audience of potential customers who already have a trusted relationship with these service providers.
Educational Approach and Community Building
Huntress consistently led with education and community engagement rather than aggressive sales tactics. By providing valuable cybersecurity education, they built strong credibility and trust in their target market. This involved showing potential customers what hackers do and educating them on security threats.
Why it worked: This strategy resonated with customers because it emphasized trust and value rather than a direct sales pitch, creating organic demand for the product. By positioning themselves as educators, Huntress increased their credibility and became the go-to resource for cybersecurity knowledge, resulting in a more loyal customer base.
Demand Generation via Content and Trade Shows
Huntress identified the right watering holes, such as trade shows and peer groups, where potential customers gather, focusing on capturing demand through structured and informative presentations. They essentially combined demand capture (reaching those actively ready to buy) with demand generation (educating those who might not yet realize the need for cybersecurity services).
Why it worked: Engaging directly with potential customers in environments they trust allowed Huntress to solidify relationships and build a strong, positive reputation. By offering rich content and education at these events, they were able to build trust before introducing their product, reducing sales friction.
Customer Feedback and Iteration
The approach of continually asking for customer feedback and iterating based on this feedback allowed Huntress to improve its product offerings continuously. This loop not only kept them attuned to customer needs but also helped them refine their sales and marketing strategies over time.
Why it worked: By remaining open to feedback and willing to pivot based on customer input, Huntress could hone in on precisely what their market needed, ensuring their product offerings remained relevant and valuable. This iterative approach meant that Huntress could adapt quickly to changing market demands or security threats.
What's the pricing strategy for Huntress?
Huntress charges SMBs a subscription fee starting around $3 per endpoint per month, offering a scalable managed cybersecurity platform that includes endpoint detection and response, with pricing varying based on additional services and endpoint volume.
What were the biggest lessons learned from building Huntress?
- Lead with Education: Huntress grew its customer base by prioritizing education over direct sales, building trust and demand through valuable insights into cybersecurity threats.
- Find Your Market: Initially, Huntress struggled to identify its target market, but found success once it focused on outsourcing IT teams – a less crowded, high-demand segment.
- Stay Lean and Adaptable: Bootstrapping for years, Huntress learned to deliver value with minimal resources, refining products based on real-world use and feedback.
- Prioritize Team Dynamics: The company emphasized the importance of aligning equity, expectations, and roles from the start, learning from early missteps.
- Mission Focus Maintains Resilience: Despite initial setbacks and near acquisitions, Huntress's commitment to its mission helped it persevere and eventually reach significant scale.
What platform/tools does Huntress use?
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More about Huntress:
Who is the owner of Huntress?
Kyle Hanslovan is the founder of Huntress.
When did Kyle Hanslovan start Huntress?
2015
What is Kyle Hanslovan's net worth?
Kyle Hanslovan's business makes an average of $10M/month.
How much money has Kyle Hanslovan made from Huntress?
Kyle Hanslovan started the business in 2015, and currently makes an average of $120M/year.
