Latest news with #Madrona
Geek Wire
30-07-2025
- Business
- Geek Wire
Seattle VCs: Startups must rethink defensibility in the fast-moving AI era
GeekWire's startup coverage documents the Pacific Northwest entrepreneurial scene. Sign up for our weekly startup newsletter , and check out the GeekWire funding tracker and venture capital directory . Greg Gottesman (left), managing director at Pioneer Square Labs, and Matt McIlwain, managing director at Madrona, speak at Seattle Venture Day on Tuesday at Queen Anne Beer Hall, as part of Seattle Tech Week. (GeekWire Photo / Taylor Soper) Building a startup in the AI era presents a paradox: early stage companies can scale rapidly — but they're also more vulnerable than ever. 'It's never been a more disruptive time. That's the good news,' said Matt McIlwain, managing director at Madrona. 'The bad news is, it's never been a less durable time.' McIlwain joined his former colleague Greg Gottesman, managing director at Pioneer Square Labs, on stage at Seattle Venture Day on Tuesday as the two longtime venture capitalists shared a clear message to founders: the AI era is rewriting the startup playbook, and sticking to old rules could leave even fast-growing companies behind. New moats In a world where large language models and open-source tools are widely accessible, defensibility looks different. McIlwain described a concept he calls 'reasoning flywheels' — a new type of moat where startups use data, engagement, and tailored workflows to build value. The pattern works like this: Start with publicly available data and models. Build a superior user experience, grow customer engagement, collect proprietary data, and use that data to refine the models. That, in turn, improves workflows and generates even more data. Gottesman noted that traditional defensibility based on ideas or basic IP is less reliable in this environment. 'You have to think beyond where we typically thought about ways to build a moat,' he said. That includes exploring new pricing structures, delivery models, and user experiences — not just product features. Unprecedented pace Pablo Casilimas, managing partner at OneSixOne Ventures, interviews Gottesman and McIlwain. The Seattle VCs drew comparisons to the dot-com era, when they began their investing careers. But AI, they said, is evolving at a breakneck speed that makes the internet revolution look slow. 'Even having done this for almost 30 years, I'm unfamiliar with this pace of change,' Gottesman said, adding: 'The level of change and advance, and your ability to sort of envision what that future might look like, is unlike anything I've ever seen.' McIlwain noted how models become obsolete rapidly, asking the crowd if anyone still uses GPT-2 — which was state-of-the-art not so long ago. 'The models, in and of themselves, depreciate — but intelligent applications and agentic workflows tend to have a flywheel effect,' he said. McIlwain noted the critical importance of customer feedback in navigating such rapid change. 'The customer is always smarter than the venture capitalists,' he said. 'Listen to your customers.' Gottesman encouraged founders to be 'intensely, insanely curious' and stressed the value of a team. 'Surround yourself with the most incredible people you can and try to fill holes for yourself,' he said. 'Don't just hire people that are exactly like yourself. Look for people that hopefully like you want to work with, but also that have different perspectives that bring in something new to your team.' Bullish on Seattle Both investors agreed that Seattle is well-positioned to lead the next wave of innovation, particularly in AI. 'I just feel like we have such incredible talent in the right areas — that infrastructure layer, as well as at the application layer around AI,' Gottesman said. 'I think that puts us in a really good position to create one of the next great iconic companies.' McIlwain said that if you believe the 'reasoning revolution' will happen faster than previous technological revolutions — 'how can we not, in the next 10 years, do incredible, transformative, daring things here in the greater Seattle ecosystem?' Related: Can Seattle own the AI era? We asked 20 investors and founders to weigh the city's startup potential
Yahoo
28-07-2025
- Business
- Yahoo
Dropzone AI Secures $37M Series B, Putting AI Security Analysts on the Front Lines of Cyber Battlefield
New funding fuels the development of autonomous AI SOC agents, set to turn the tide on the losing cybersecurity battle SEATTLE, July 28, 2025--(BUSINESS WIRE)--Dropzone AI, the leading provider of AI SOC analysts, has raised $37 million in Series B funding, led by Theory Ventures and joined by Madrona, Decibel Ventures, Pioneer Square Labs, and IQT. This infusion of funding validates Dropzone AI's unique solution as it leads the market for AI SOC agents, delivering measurable and transformative security outcomes for clients like UiPath, Zapier, Pipe, Assala Energy, and over 100 other enterprises. Their AI-native approach equips security teams with a superior defense - reducing security risks, operational costs, and analyst burnout - uniquely addressing the limitations of legacy cybersecurity solutions. "Dropzone AI's ability to autonomously triage and investigate security alerts with human-level reasoning is a game-changer in a market that's overwhelmed by alert fatigue and attack frequency," said Vivek Ramaswami, Partner at Madrona Ventures. "At Madrona we look for founders who are passionate about advancing their sector and have the technical ability to do so; Edward exemplifies this pairing of vision and acumen. We're proud to support him and the Dropzone team in building what modern security teams need to stay ahead." According to the 2024 ISC2 Cybersecurity Workforce Study, 67% of respondents face staffing shortages, worsened by layoffs and budget cuts, making it more difficult to secure their organizations and driving interest in AI SOC solutions as leaders recognize the need for fundamental change. Recent Gartner® research1 predicts that, "multiagent AI in threat detection and incident response will rise from 5% to 70% of AI implementations to primarily augment — not replace — staff." Additionally, we were recently named a Sample Vendor for AI SOC Agents within the 2025 Gartner® Hype Cycle ™ for Security Operations2. Dropzone AI is at the forefront of this transformative shift in cybersecurity strategies and investments, set to fundamentally redefine cybersecurity operations. "Dropzone AI SOC analyst's performance is exceptional, delivering detailed, high-fidelity alerts within minutes," said Andrew Marsh, Director of Information Security at Indiana Farm Bureau Insurance. "This transparent, rapid processing and accuracy significantly elevates threat response capabilities." Dropzone AI autonomously investigates security alerts, replicating the techniques of elite analysts and allowing SOCs to achieve coverage and speed that was not previously possible. CBTS, a North American IT services provider, uses Dropzone AI to enhance the efficiency and quality of its managed detection and response service. By offloading 30–50% of alert volume, the platform has significantly reduced repetitive work, allowing the team to focus more on threat hunting, customer onboarding, and improving coverage. "Today's funding fortifies our market lead," said Edward Wu, Founder and CEO of Dropzone AI. "We're driving a generational shift in cybersecurity from manpower-bound, alert-chasing SOC teams to SOC teams backed by an army of autonomous AI agents that get to focus on what truly matters. This change is not optional; it's essential. We exist to level the playing field for cyber defenders, and we can field these next-generation capabilities right now. We know who we're working for. We'll ensure they always outmatch the attackers." The capital will be deployed across three strategic pillars. First, Dropzone AI will amplify its global footprint to meet surging demands by growing sales, marketing, and customer-success teams, so more security teams can better protect and enable their businesses without large increases in headcount or budget. Second, the company will fast-track the creation of additional specialized, autonomous AI agents for manual security tasks. Finally, it will deepen and extend its roster of ecosystem partnerships and technical integrations, ensuring its solutions can work with security teams of all sizes, tool stacks, and maturity to boost operational efficiency, sharpen threat detection, and drive stronger ROI. "As the AI SOC market has begun to mature, Dropzone has pulled ahead of the pack," said Tomasz Tunguz, General Partner at Theory. "Their AI SOC analysts have been validated by some of the world's largest enterprises and MSSPs, and are in production across dozens of businesses – along with recognition from analyst firms like Gartner and Forrester. Dropzone's sales have taken off as they've established their position as a trusted category leader; we were excited to double down in the Series B to further accelerate their efforts and shape what's next in AI-native security platforms." To learn more about Dropzone AI or to book a demo, please visit: About Dropzone AI Dropzone AI weaponizes LLMs for cyber defenders, equipping them with armies of AI agents so that they can overmatch attackers. With Dropzone autonomously handling routine Tier 1 alert triage, organizations can spend less time on reactive security and more time on proactive security. The Dropzone AI SOC Analyst replicates the techniques of elite analysts and is trusted by more than 100 organizations, including Mysten Labs, Pipe, UiPath, and Zapier. Learn more by visiting ______________________________ 1 Gartner, "Emerging Tech: Techscape for Detection and Response Startups," Bhatia, Esha, and Apeksha Kaushik. , March 19, 2025. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. 2 Gartner, "Hype Cycle for Security Operations, 2025," Nunez, Jonathan, and Darren Livingstone, June 23, 2025. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. View source version on Contacts Media ContactTori OdomLaunchTech Communications+1-443-752-5466todom@
Business Wire
28-07-2025
- Business
- Business Wire
Dropzone AI Secures $37M Series B, Putting AI Security Analysts on the Front Lines of Cyber Battlefield
SEATTLE--(BUSINESS WIRE)--Dropzone AI, the leading provider of AI SOC analysts, has raised $37 million in Series B funding, led by Theory Ventures and joined by Madrona, Decibel Ventures, Pioneer Square Labs, and IQT. This infusion of funding validates Dropzone AI's unique solution as it leads the market for AI SOC agents, delivering measurable and transformative security outcomes for clients like UiPath, Zapier, Pipe, Assala Energy, and over 100 other enterprises. Their AI-native approach equips security teams with a superior defense - reducing security risks, operational costs, and analyst burnout - uniquely addressing the limitations of legacy cybersecurity solutions. 'Dropzone AI's ability to autonomously triage and investigate security alerts with human-level reasoning is a game-changer in a market that's overwhelmed by alert fatigue and attack frequency," said Vivek Ramaswami, Partner at Madrona Ventures. "At Madrona we look for founders who are passionate about advancing their sector and have the technical ability to do so; Edward exemplifies this pairing of vision and acumen. We're proud to support him and the Dropzone team in building what modern security teams need to stay ahead." According to the 2024 ISC2 Cybersecurity Workforce Study, 67% of respondents face staffing shortages, worsened by layoffs and budget cuts, making it more difficult to secure their organizations and driving interest in AI SOC solutions as leaders recognize the need for fundamental change. Recent Gartner® research1 predicts that, 'multiagent AI in threat detection and incident response will rise from 5% to 70% of AI implementations to primarily augment — not replace — staff.' Additionally, we were recently named a Sample Vendor for AI SOC Agents within the 2025 Gartner® Hype Cycle ™ for Security Operations2. Dropzone AI is at the forefront of this transformative shift in cybersecurity strategies and investments, set to fundamentally redefine cybersecurity operations. 'Dropzone AI SOC analyst's performance is exceptional, delivering detailed, high-fidelity alerts within minutes,' said Andrew Marsh, Director of Information Security at Indiana Farm Bureau Insurance. 'This transparent, rapid processing and accuracy significantly elevates threat response capabilities.' Dropzone AI autonomously investigates security alerts, replicating the techniques of elite analysts and allowing SOCs to achieve coverage and speed that was not previously possible. CBTS, a North American IT services provider, uses Dropzone AI to enhance the efficiency and quality of its managed detection and response service. By offloading 30–50% of alert volume, the platform has significantly reduced repetitive work, allowing the team to focus more on threat hunting, customer onboarding, and improving coverage. 'Today's funding fortifies our market lead,' said Edward Wu, Founder and CEO of Dropzone AI. 'We're driving a generational shift in cybersecurity from manpower-bound, alert-chasing SOC teams to SOC teams backed by an army of autonomous AI agents that get to focus on what truly matters. This change is not optional; it's essential. We exist to level the playing field for cyber defenders, and we can field these next-generation capabilities right now. We know who we're working for. We'll ensure they always outmatch the attackers.' The capital will be deployed across three strategic pillars. First, Dropzone AI will amplify its global footprint to meet surging demands by growing sales, marketing, and customer-success teams, so more security teams can better protect and enable their businesses without large increases in headcount or budget. Second, the company will fast-track the creation of additional specialized, autonomous AI agents for manual security tasks. Finally, it will deepen and extend its roster of ecosystem partnerships and technical integrations, ensuring its solutions can work with security teams of all sizes, tool stacks, and maturity to boost operational efficiency, sharpen threat detection, and drive stronger ROI. "As the AI SOC market has begun to mature, Dropzone has pulled ahead of the pack," said Tomasz Tunguz, General Partner at Theory. "Their AI SOC analysts have been validated by some of the world's largest enterprises and MSSPs, and are in production across dozens of businesses – along with recognition from analyst firms like Gartner and Forrester. Dropzone's sales have taken off as they've established their position as a trusted category leader; we were excited to double down in the Series B to further accelerate their efforts and shape what's next in AI-native security platforms." To learn more about Dropzone AI or to book a demo, please visit: About Dropzone AI Dropzone AI weaponizes LLMs for cyber defenders, equipping them with armies of AI agents so that they can overmatch attackers. With Dropzone autonomously handling routine Tier 1 alert triage, organizations can spend less time on reactive security and more time on proactive security. The Dropzone AI SOC Analyst replicates the techniques of elite analysts and is trusted by more than 100 organizations, including Mysten Labs, Pipe, UiPath, and Zapier. Learn more by visiting ______________________________ 1 Gartner, 'Emerging Tech: Techscape for Detection and Response Startups,' Bhatia, Esha, and Apeksha Kaushik. , March 19, 2025. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. 2 Gartner, 'Hype Cycle for Security Operations, 2025,' Nunez, Jonathan, and Darren Livingstone, June 23, 2025. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Expand
Geek Wire
21-07-2025
- Business
- Geek Wire
Madrona's Matt McIlwain called it: A year later, Microsoft and Amazon are outpacing Apple
Speaking on CNBC this afternoon, Madrona's Matt McIlwain noted that he had been on the business news network a year ago with a contrarian call: bullish on Microsoft and Amazon, skeptical on Apple. For anyone who might have been tempted to see some hometown bias in his past perspective, the 12-month scorecard validates his thesis. Amazon is up 25%, Microsoft up 15%, and Apple is down 5%. The Seattle-based venture capitalist acknowledged being 'a little bit wrong in the short term' but maintained that the performance dispersion between these tech giants will continue. Fueling the gains is the fact that Microsoft and Amazon seem to have persuaded the market about the promise of their long-term bets on artificial intelligence, while Apple has struggled on that front. McIlwain views Apple as facing ongoing challenges, while Google presents the most uncertainty — trading at roughly 20x price-to-earnings compared to 30x for its peers, making it 'the trickiest one to guess.' His broader point: the days of Big Tech moving in lockstep are over. The growing dispersion in performance reflects fundamental differences in their businesses and prospects. The Seattle-based venture capitalist's latest comments come in advance of tech earnings season. Google parent Alphabet reports its results on Wednesday, with Microsoft, Amazon and Apple earnings set for next week. McIlwain also weighed in on the reopening IPO window, highlighting Figma as an ideal candidate to test the market. He expressed cautious optimism about the surge in crypto-related filings following Circle's impressive gain since its June debut. Watch the full segment above from CNBC's 'Closing Bell Overtime.'
CNBC
21-07-2025
- Business
- CNBC
Up market for crypto IPOs with more certainty around regulatory environment, says Madrona's McIlwain
Matt McIlwain, Madrona managing director, joins 'Closing Bell Overtime' to talk the current state of the IPO market for tech and crypto companies.
