Micro Step Online Obtained 800 Million Yuan Investment Products In Half A Year

With the digital transformation of all walks of life, the value of enterprise digital assets has been greatly improved, and the demand for network security services is becoming more and more urgent. As a result, the network security market is growing rapidly, and the threat intelligence market, one of its subdivisions, is also gradually rising.

As the head start-up company threatening the intelligence market, micro step online has been gaining the favor of investment institutions recently. In March 2021, micro step online announced the completion of the e round of RMB 500 million financing. This round of financing is led by CPE Yuanfeng (CITIC Industrial Fund), and the old shareholder Yunhui capital continues to invest.

Half a year ago, in September 2020, micro step online had just completed about 300 million yuan of round D financing. Several state-owned investment institutions such as CICC capital, CITIC Securities and Yunhui capital were its investors at that time.

"After these two rounds of financing, whether in terms of total financing or company valuation, we are among the top unlisted network security enterprises in China." Said Xue Feng, founder and CEO of Weibo online.

He said the financing funds will be mainly used for product research and development and marketing. The company does not rule out that it will expand the technical product layout of the team through M & A. In the past, many people thought that Weibo online was a network security manufacturer with market segmentation. At present, micro step online is expanding to threat detection and response products based on Threat Intelligence product line, and continues to provide users with high-frequency services.

Product matrix provides services from line to surface

Weibo online was founded in July 2015. Xue Feng, the company's founder, previously served as chief information security officer of Amazon (China) and Internet security strategy director of Microsoft. Other members of the team came from bat, meituan and other companies. At present, the company has nearly 300 people.

Micro step online has been focusing on the field of threat detection for a long time, and has developed a "cloud + traffic + endpoint" omni-directional threat detection response product matrix based on traffic and terminal, helping enterprises to establish a comprehensive threat monitoring system. The enterprise customers it is serving come from energy, finance, intelligent manufacturing, Internet and other industries, including state grid, PetroChina, ICBC, China Merchants Bank, oppo, Didi, Jingdong, CITIC Group, National Information Center, etc.

"We serve about 2000 companies, more than 300 of which are paying customers. Paying customers include eight of the country's top 10 banks, 18 of the top 20 securities companies, and all the head Internet companies and head smartphone manufacturers. " Xue Feng said.

Although many Internet companies like to develop their own products and have their own network security team, micro step online products still show unique value. The reason is that it is relatively easy for Internet companies to build a team for pure software network security products. But if it is a product based on data analysis that needs to be accumulated and model polished for a long time, Internet companies may need to invest tens of millions or hundreds of millions in self-study. If they choose to use micro step online products, they only need to pay a few million each year. So even Internet companies with strong resources tend to use micro step online products.

"Moreover, these enterprise customers often choose micro step online for more than one year. We have a high product renewal rate." Xue added. The annual renewal rate of the company reaches 95%, which reflects the stickiness of the products and the service ability of the company. As far as the industry as a whole is concerned, the renewal rate of a large number of SaaS enterprises ranges from 50% to 80%, and more than 80% of them are already at a high level. In the world, the best SaaS companies have a renewal rate of 97% - 98%.

In addition, it is worth noting that micro step online is constantly expanding its product line, such as TDP based on traffic detection and response, oneedr based on terminal detection and response, onedns, etc. It is understood that in the network security industry, some manufacturers provide a line of services, some manufacturers provide a comprehensive service, and some manufacturers provide comprehensive three-dimensional services. At present, micro step online is not a three-dimensional manufacturer, but it has been able to provide enterprise customers with a certain degree of focus from line to surface services.

Xue Feng said that the expansion from line to surface requires the company to have two capabilities. First, it should be deep enough in the original business line to form an absolute leading edge in the subdivision field. Second, the company's business is scalable and can expand from line to area. For example, apple made IOS and the iPhone, and then launched the iPad. This seems to be two products, but the kernel of the operating system is the same, indicating that its software is scalable.

"We have developed from line to surface and formed our own product matrix, which can help customers establish a comprehensive threat monitoring system." Xue Feng said. The company will not provide a variety of security products like the comprehensive security manufacturers. But it will focus on Threat Intelligence and further improve its products and services.

Introducing capital brings long-term value

Behind the six-year growth of micro step online, it is also inseparable from the support of investment institutions. According to the reporter's understanding, micro step online has completed six rounds of financing, and early investors also include Aurora Borealis, cloud angel fund, Hillhead capital, etc.

Xue Feng said that several institutions will do a thorough job in the early stage of the due diligence, and some even interviewed 10 or 20 customers of micro step online to understand the reasons why they use micro step online products. They also look for companies that don't use micro step online products to find out why they don't use the company's products.

After investment, many institutions have brought long-term value to the development of micro step online. For example, Hillhead capital, the leading investor of round B and round C financing, is also the largest external shareholder of micro step online. Hillhouse capital has provided help for micro step online in terms of talent recruitment and business resource docking. CICC capital, the investor of round D of the company, has strong investment and research ability, and both sides often exchange views on some thoughts on the network security industry.

In the past, micro step online conducted a new round of financing every year or so, but from the D round of financing in September last year to the latest round of e financing, micro step online only took less than half a year.

"CPE's professionalism, patience and understanding of the enterprise service market have generated a lot of resonance between the two sides, which is also the main reason why we choose to accept their investment." Xue Feng said.

For this round of investment, Zhang Yinghao, managing director of CPE, said that based on its leading threat intelligence capability, Weibo online has built a comprehensive threat detection and response product system, and realized a subscription business model in the field of network security. From the perspective of technology, products and business model, they are highly scarce, and are excellent network security enterprises in China. CPE will help micro step online complete a more comprehensive product, technology and market layout, and become a new generation of network security giant.

After the acceleration of financing, does micro step online go further? Xue Feng said that in the past two years, micro online did not have a clear listing schedule. "We are a company less than six years old, and we are still relatively young in 2B enterprise. We hope to spend more years on cultural construction and organizational capacity improvement of the company, so that the company can go more stable in the future. " Xue Feng said.

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