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 in B2B technology, with over 40 years of experience and over $880 million invested. Our investment strategy is grounded in insights from our research and transaction advisory work, which enable us to identify compelling opportunities and support companies as they grow. We invest primarily in North America across sectors where our research provides a differentiated perspective, including cybersecurity, e-commerce optimization, enterprise productivity, future of work, go-to-market technology, healthcare IT, infrastructure technology, Internet of Things, learning technology, pharma IT, supply chain and vertical SaaS. We target entrepreneur-driven, capital-efficient companies with proven business models and demonstrable customer successes. We partner with our portfolio companies to build to successful exits, investing $3 to $10 million, either as a lead investor or as a syndicate partner bringing valuable insights and expertise. For more information, visit www.firstanalysis.com.
For more information, please contact:
Howard Smith
Managing Director
312-258-7117
hsmith@firstanalysis.com
Media contact:
David Leshuk
Managing Director
312-258-7131
dleshuk@firstanalysis.com