SDCH
Industry:
Software

DESCRIPTION

SideChannel is a small cybersecurity company focused on mid-market and emerging businesses. The company has two core offerings: vCISO services and Enclave, a proprietary zero trust network security platform. The vCISO business embeds outsourced, fractional security executives into client organizations to manage cybersecurity risk, compliance, and policy. These engagements run as fixed monthly subscriptions, typically 12+ months, and have historically been SideChannel's primary revenue source. Enclave is a software platform that combines microsegmentation, asset discovery, vulnerability management, and firewall management into a single solution, sold on a per-agent, per-month subscription basis. SideChannel sells directly and through channel partners — MSPs, MSSPs, and VARs — and the vCISO relationship typically serves as the entry point that leads to Enclave deployments. Management's stated goal is to invert the revenue mix over time, making Enclave the primary driver. Enclave carries higher margins than the services business, and its per-agent pricing creates a natural upsell as clients add devices or modules. SideChannel is also pursuing U.S. federal and DoD customers for Enclave, currently through subcontracting partners, and holds GSA and NASA SEWP contract vehicles. The company carries no debt and has been cash flow positive from operations.

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