Provider of MXDR services that blend advanced threat detection with expert human analysis to proactively identify, investigate and stop attacks before they cause harm

CHICAGO – April 25, 2025 – First Analysis, a leading venture capital investor, has made a new investment in Gradient Cyber, a leading provider of managed extended detection and response (MXDR) services for mid-market organizations. First Analysis led the Series A financing, which will support Gradient Cyber's continued growth and product development as it scales to meet increasing demand for 24/7 MXDR services.

Gradient Cyber’s proprietary XDR platform powers its continuous security operations through a global network of in-house cyber analysts. Unlike traditional security tools that operate in isolation, MXDR integrates detection and response across endpoints, networks, cloud, SaaS and business applications, eliminating security gaps and neutralizing threats before they spread. The Gradient Cyber platform leverages AI-driven telemetry analysis combined with human-led investigation and response, enabling near real-time threat detection and mitigation.

“This investment marks a pivotal moment in our growth trajectory,” said Gradient Cyber CEO James Hamilton. “Mid-sized companies often confront the same sophisticated cyber threats as large enterprises but with significantly fewer resources. With First Analysis as our strategic partner, we’re committed to delivering the market’s most effective, scalable and transparent MXDR services – built on real telemetry, real humans and real results.”

“We’re thrilled to partner with this experienced Gradient Cyber team as they continue to redefine cyber risk management for mid-sized enterprises,” said First Analysis Managing Director Howard Smith. “Gradient Cyber's commitment to the mid-market and a channel-first strategy provides a strong path to scale and was evident from our very first meeting.”

Howard Smith has joined the Gradient Cyber board.

About Gradient Cyber

Gradient Cyber is a fast-growing managed extended detection and response (MXDR) provider serving the U.S. mid-market – an underserved segment of over 300,000 organizations. The company’s proprietary XDR platform, data source flexibility, 24/7 security operations center, high-context situation reports (SitReps) and industry-leading cyber analyst to customer ratio combine to deliver excellent value for resource, expertise and budget-constrained organizations. With proven traction across 35+ market verticals, Gradient Cyber is well positioned to scale even as cybersecurity becomes increasingly complex and talent constrained. Learn more at www.gradientcyber.com.

About First Analysis

First Analysis is a leading venture capital investor focused on B2B technology businesses. We have one of the longest records in venture capital, having invested over $845 million across multiple highly diversified funds over four decades. First Analysis invests mainly in North America with a focus on our sectors of expertise, including cybersecurity, e-commerce optimization, enterprise productivity, future of work, go-to-market tech, healthcare IT, infrastructure tech, Internet of Things, learning tech, pharma IT and vertical SaaS. We help established companies become profitable leaders in large markets, funding growth plans and working closely with management in areas including strategy, recruitment, sales and marketing, and corporate development. Our flexible approach targets investing $3-10 million as lead investor or as a syndicate partner bringing valuable perspective. For more information, visit www.firstanalysis.com

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