By Sandra I. Erwin
August 2015
It is one of the unwritten rules of venture-funded technology companies that they should stay as far away from government contracts as they possibly can.
Unless they are cybersecurity contracts.
In the cyber business, in fact, the federal government can be the ticket to prosperity. Not so much for the amount of money it spends, but because government networks are ground zero for the cyber wars that are being fought on a daily basis and will continue to be waged for years to come.
“No other customer has tougher problems,” says former U.S. Marine turned venture capitalist Nathaniel C. Fick.
“For an early stage cyber company, having government customers is great,” he says. “Nobody is better than the Defense Department and the intelligence community.”
Fick has drawn such conclusions after three years of running Endgame Inc., a 150-employee software company funded by Bessemer Venture Partners, where he remains an operating partner. The firm has bankrolled hundreds of the most successful companies in the United States.