Why General Catalyst Is Bullish on Security
VIDEO: Steve Herrod, managing partner at General Catalyst, discusses his current investments, and how to determine if a technology is a company or if it's just a feature.Over the last three years, Steve Herrod, managing partner at General Catalyst, has taken an equity position in a number of security startups, and looked at hundreds more possible candidates. When evaluating a potential investment, determining if a technology is actually enough to build a company or if it's actually just a feature is a key consideration for Herrod. In a video interview with eWEEK, Herrod discuses his investments in Anomali, Menlo Security and Illumio as well as his criteria for picking technology winners. Overall, Herrod sees isolation-type technologies as the next big wave of security innovation as organizations increasingly come to the realization that not all threats can be blocked at the perimeter. The basic idea with isolation is that when bad things do get through, by having isolation, the risks can be minimized. When it comes to picking investments, Herrod noted that understanding what makes a technology idea a company and not just a feature is a process he understands well. For starters is the revenue potential for the technology. That is—how big of a sales deal is possible?
"If you're not signing a deal with a big company that's over $100,000, you're probably not providing something that has a big enough impact to be a company in its own right," he said.