Brightmind Co-Founder Stephen Ward Raises Second Cybersecurity Fund

Stephen Ward, co-founder of Brightmind Partners, a two-year-old cybersecurity fund in New York, is taking a pragmatic approach to investing, according to TechCrunch. Ward says that every portfolio company is not necessarily headed for an IPO, and that selling on the way up is often the best strategy. This approach has proven successful, with Brightmind's debut fund closing at $250 million late last year.

Ward's background is unique, with a stint in the Coast Guard, nine years in the Secret Service, and CISO jobs at TIAA and Home Depot, TechCrunch reported. His experience in the Secret Service included investigating financial crimes and cybersecurity, which ultimately led him to become a venture capitalist. Ward's firm has made investments in several cybersecurity startups, including SGNL, which was acquired by CrowdStrike for $740 million.

Ward's career has not been without challenges, however. After arresting a hacker, he spent 18 months clearing his name when the hacker falsely accused him of being involved in the crime. This experience has given Ward a unique perspective on the importance of due diligence and careful investing. Despite this, Ward has gone on to have a successful corporate career, with jobs at J.P. Morgan, TIAA, and Home Depot.

In 2021, Ward left his job at Home Depot without a new position lined up, but he was soon approached by venture capitalist Jeff Horing, who offered him a job at Insight Partners. Ward worked on several successful investments at Insight, including Wiz, which was acquired by Google for $32 billion. However, Ward has said that he does not regret not taking a job at Wiz, which would have made him a significant amount of money.

Ward started Brightmind in 2024 with co-founder Gur Talpaz, but the partnership ended in the spring, according to TechCrunch. Talpaz has since co-founded a new venture firm, Cognition, which is targeting a $170 million first fund to back cybersecurity startups. Despite the split, Ward remains confident in his ability to raise a second fund and continue making successful investments in the cybersecurity space.

Brightmind's first fund has made 14 investments to date, with one notable exit being the sale of SGNL to CrowdStrike for $740 million. Some investors have questioned why Brightmind did not hold onto the investment for longer, but Ward says that he is confident in his ability to warn founders when they are at risk of overvaluing their companies. In the cybersecurity space, Ward believes that the best sales come between a startup's third and seventh years, and that understanding how the pieces fit together is key to making successful investments.

Ward is now raising a second fund, targeting roughly the same size as the first one, according to TechCrunch. This time, however, he will be doing it without Talpaz, who left the firm in April. Despite the challenges, Ward remains optimistic about the future of cybersecurity investing and is betting on himself to continue making successful investments.