Cylance
Cylance Inc. is an American cybersecurity company specializing in artificial intelligence and machine learning-based endpoint protection solutions designed to predict and prevent malware and advanced threats without relying on traditional signature-based detection.[1][2]
Founded in 2012 by Stuart McClure and Ryan Permeh in Irvine, California, where it maintains its headquarters, Cylance pioneered preventive AI-driven security approaches that analyze executable code to block zero-day attacks and known malware variants preemptively.[1][3][4] The company achieved rapid growth, reaching unicorn status and serving enterprise clients with products like CylancePROTECT, which emphasized low resource usage and high efficacy in independent evaluations, though it drew scrutiny for disputes over testing methodologies and claims of superior performance.[5][6] In 2019, BlackBerry acquired Cylance for $1.4 billion to bolster its endpoint security offerings, but the unit underperformed, leading to its sale to Arctic Wolf in December 2024 for $160 million amid broader challenges in integrating and scaling the technology.[7][8] Cylance has been credited with validating its approach in high-profile incidents, such as post-Sony hack analyses, yet faced controversies including researcher-demonstrated bypasses of its AI models and a 2024 data breach via a third-party platform.[9][10][11]
Company Overview
Founding and Early Development
Cylance Inc. was founded in July 2012 by Stuart McClure and Ryan Permeh in Irvine, California.[12][2] McClure, who served as the company's CEO, brought extensive experience from prior roles, including co-founding Foundstone—a security consultancy acquired by McAfee for $86 million in 2004—and working as global CTO at McAfee and Intel Security.[13] Permeh, a co-founder with roots at McAfee, complemented this expertise in cybersecurity operations and research.[14] The company's inception stemmed from a recognition of limitations in traditional antivirus solutions, which relied on signature-based detection prone to evasion by novel threats.[15] Cylance pioneered a proactive, math-based approach using artificial intelligence and machine learning to predict and prevent malware execution at the endpoint level, analyzing file characteristics mathematically rather than reactively scanning for known patterns.[16][17] This innovation aimed to address recurring cyber attack successes due to industry inertia in detection methods.[15] In its early years, Cylance focused on developing its core product, CylancePROTECT, which emphasized prevention over detection.[18] By 2016, the technology had gained traction among early adopters, with professional services engagements demonstrating its efficacy against advanced threats.[19] The firm operated as a channel-oriented vendor from the outset, building partnerships to scale deployment without direct sales infrastructure.[20] This foundational strategy positioned Cylance for rapid growth, culminating in significant enterprise adoption by the late 2010s.[14]Leadership and Key Personnel
Cylance was co-founded in 2012 by Stuart McClure and Ryan Permeh, with McClure serving as the initial CEO and Permeh as chief scientist. McClure, who previously co-founded the security consultancy Foundstone (acquired by McAfee for $86 million in 2004), led the company's strategic direction toward AI-driven endpoint protection, emphasizing mathematical models for threat detection over traditional signature-based methods.[21][3] Under McClure's leadership, Cylance grew to over 900 employees and secured more than 3,000 enterprise customers before its acquisition by BlackBerry in November 2018 for $1.4 billion.[12] Following the BlackBerry acquisition, McClure departed in September 2019, after which Daniel Doimo was promoted from his role as executive vice president of worldwide sales to president of BlackBerry Cylance. This transition coincided with several other executive exits, including chief marketing officer Didi Dayton and senior vice presidents Tim Mackie and Louise Ray, who joined competing cybersecurity firms.[12][22] Permeh remained involved in technical leadership post-acquisition, contributing to product architecture as senior vice president and chief security architect at BlackBerry.[1] In December 2024, BlackBerry agreed to sell Cylance's endpoint security assets to Arctic Wolf for $160 million in cash plus shares, with the deal closing in February 2025; no specific leadership changes for the Cylance unit were publicly detailed, as the assets were integrated into Arctic Wolf's security operations platform.[23][24] Prior to these shifts, other key personnel included Brian Robins as CFO, appointed in August 2017, who oversaw financial operations during the company's rapid scaling.[25]Business History
Funding Rounds
Cylance raised a total of $297 million across five venture capital funding rounds from 2013 to 2018, prior to its acquisition by BlackBerry.[26] These rounds supported rapid expansion in artificial intelligence-based endpoint security, with investments from prominent firms including Blackstone, Khosla Ventures, and Insight Venture Partners. The Series A round closed on February 13, 2013, for $15 million, co-led by Khosla Ventures and Fairhaven Capital Partners to fund initial product development and market entry.[27][28] On February 20, 2014, Cylance secured $20 million in Series B funding, backed by Blackstone alongside returning investors Khosla Ventures and Fairhaven Capital, enabling team growth and technology scaling.[29][30] The Series C round, announced July 28, 2015, raised $42 million with participation from Blackstone and Capital One Ventures, bringing cumulative funding to $77 million and supporting international operations.[31][30] In Series D, completed June 8, 2016, the company obtained $100 million led by Blackstone Tactical Opportunities and Insight Venture Partners, which fueled global sales and R&D investments.[32][33] The final pre-acquisition round, Series E, raised $120 million on June 20, 2018, led by Blackstone Tactical Opportunities with additional undisclosed participants, valuing the company at approximately $1 billion and preparing for broader enterprise adoption.[34][35]| Round | Date | Amount | Key Investors |
|---|---|---|---|
| Series A | Feb 13, 2013 | $15M | Khosla Ventures, Fairhaven Capital |
| Series B | Feb 20, 2014 | $20M | Blackstone, Khosla Ventures, Fairhaven Capital |
| Series C | Jul 28, 2015 | $42M | Blackstone, Capital One Ventures |
| Series D | Jun 8, 2016 | $100M | Blackstone Tactical Opportunities, Insight Venture Partners |
| Series E | Jun 20, 2018 | $120M | Blackstone Tactical Opportunities |