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Option3 Launches Zero Trust Platform, Eyes IPO as It Targets Federal and National Security Sectors

Updated: Jan 4

In a decisive move to fortify national cybersecurity infrastructure, Option3 is combining technologies and expertise to focus on Zero Trust solutions to meet pressing security needs amid evolving cyberspace threats.

Cybersecurity private equity firm Option3 is unveiling a Zero Trust cybersecurity platform that is tailored primarily for the federal, national security, and critical infrastructure sectors. This new venture arises as a direct response to the Biden Administration’s 2021 Executive Order that mandates a paradigm shift in the federal government’s cybersecurity framework to a Zero Trust model.

Known for its cybersecurity investment specialization and its heritage in national security, Option3 has developed a platform to address the modern demands and challenges of cybersecurity. “The battlefield has evolved and so must our nation’s cyberspace capabilities to ‘defend forward’,” said Lisa Donnan, Option3’s Operating Partner, in a recent interview with TechEchelon. “This underlies the vital need for robust and proactive cybersecurity measures.”

Zero Trust, a critical component in contemporary cybersecurity strategies, addresses the blurred boundaries of companies in the post-COVID world, pushing for a revolutionary approach in place of conventional cyber models that are increasingly becoming ineffective. This platform aligns with the visionary recommendations of the Cyberspace Solarium Commission in 2020, to proactively observe, pursue, and counter adversarial operations.

Strategic Consolidation and Innovation

Option3 is constructing its advanced platform through strategic rollups, involving buyouts of several Zero Trust companies currently in its portfolio, along with the acquisition of a mid-market defense government contracting company. This approach combines deep cyber mission expertise and state-of-the-art technologies to meet exacting government requirements in Zero Trust.

In transactions totaling $100 million, Option3’s platform will launch with four companies, each bringing unique strengths from AI to Active Defense, together forging what is termed as “Military Grade Zero Trust,” a patented term implying the incorporation of Zero Trust at the manufacturing level.

Eyeing Future Prospects

Manish Thakur, Option3’s Managing Partner, is planning for an IPO in the upcoming 2-3 years as the company aims to hit $100 million in revenue and solid cash flow. He emphasized the platform’s design to generate cash flow from the onset, aligning with the market’s pivot away from funding indefinite losses and towards prioritizing predictability, long-term contracts, and high-growth innovation.

Reinforcing National Cybersecurity Infrastructure

Thakur and Donnan say the platform represents a crucial stride towards reinforcing the cybersecurity infrastructure of the federal and broader national security and critical infrastructure sectors. They are also confident the convergence of technologies and expertise embedded within Option3’s new platform will play a critical role for addressing the most pressing cybersecurity needs in the defense industrial base and private sector.

Advised by a technology board involving former CIOs from the CIA, DoD, and senior cyber executives from the private sector, the firm is poised to service a wide range of government customers ahead of the government’s shift toward Zero Trust.


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