Spring Mountain Capital has sold its stake in Warren, New Jersey-based Prevalent Inc, a provider of third-party risk management and cyber threat intelligence. The buyer is Insight Venture Partners, an existing backer of Prevalent. No financial terms were disclosed.
NEW YORK, Nov. 28, 2016 /PRNewswire/ — Spring Mountain Capital is pleased to announce the sale of its interest in Prevalent, Inc., a leader in third-party risk management and vendor threat intelligence, to Insight Venture Partners.
Prevalent provides third-party risk management and continuous threat intelligence monitoring solutions that companies use to monitor and assess the IT risks posed by their vendors and third parties. Prevalent’s software solutions allow companies to more efficiently manage the vendor assessment process and gain more objective, contextualized, and real-time information on their vendors.
Spring Mountain Capital led Prevalent’s Series B financing in January 2016, with participation from existing investor Fulcrum Equity. “We seek to invest in leaders within innovative technology sectors,” said John L. (“Launny”) Steffens, founder of Spring Mountain Capital. “As the first company to deliver a robust vendor assessment automation platform, we believe that Prevalent is a prime example of such a partnership.”
“We are pleased to announce the successful sale of our interest in Prevalent in less than 10 months,” said Jamie Weston, Managing Director of Spring Mountain Capital and Prevalent board member. “Our initial investment in Prevalent was predicated on the anticipated growth in the sector, the uniqueness of the product offering and the traction of the business. However, we primarily invested based on the talent and vision of Jonathan Dambrot and Norman Menz. Upon investing we could not have asked for a more productive and collaborative partnership. We are confident they will continue to build Prevalent into the de facto leader in vendor risk management.”
Since the Series B financing, Prevalent launched the Legal Vendor Network, a membership-based program designed for law firms to assess and monitor third-party vendors through a centralized data repository. Prevalent furthered its strategy to develop vertical vendor networks that dramatically reduce the overhead associated with third-party risk mitigation with the launch of its Higher Education vendor risk network in June. Prevalent also released its VendorThreatIQ™ product, which introduced two new risk scores that provide unprecedented insight into vendors’ ability to protect their data in today’s threat environment.
“We are thankful for the support, guidance and close partnership of the Spring Mountain Team,” said Jonathan Dambrot, CEO of Prevalent. “Our relationship has allowed Prevalent to establish itself as the leader in third-party risk management and we look to continue to build upon our success.”
About Spring Mountain Capital
Founded in 2001 and located in New York City, Spring Mountain Capital, LP (“SMC”) is a private investment management firm that focuses on alternative asset investing. SMC’s Private Equity Group provides expansion stage capital to lower middle market companies that are capitalizing on breakthrough innovations, paradigm shifts, or fundamental market or behavioral changes. The Private Equity Group at SMC focuses on two sectors of the U.S. economy with the most change and highest growth potential: technology-enabled and healthcare businesses. Within these high growth areas, it seeks to make value investments by capitalizing on market dislocations, information asymmetry, illiquidity, and complexity. For further information, please visit www.springmountaincapital.com.
Prevalent is the leader in third-party risk management and cyber threat intelligence, helping global organizations manage and monitor the security threats and risks associated with third and fourth-party vendors. With the release of Prevalent Synapse™, organizations now have a purpose-built, unified platform that reduces both risk and cost in a shared assessment model, leveraging standardized content, automation, and threat intelligence.