Stephen Ward, a former Secret Service agent turned venture capitalist, is raising a second cybersecurity fund through his New York-based firm Brightmind Partners, targeting roughly the same size as his first fund, which included an investment in SGNL, an identity security startup CrowdStrike agreed to buy for $740 million.
Ward is targeting roughly the same size for the second fund as his debut fund, which closed late last year. He is now the firm's sole general partner after co-founder Gur Talpaz left in April along with another early colleague.
The first fund made 14 investments, with one exit so far: SGNL, an identity security startup that CrowdStrike agreed to buy in January for $740 million, 11 months after Brightmind led its Series A.
Before co-founding Brightmind in 2024, Ward spent nine years in the Secret Service, moving from investigations to cyber after the September 11 attacks. He arrested a hacker who had carried out the largest credit card data theft of that era, then turned him into an informant. After the hacker was caught hacking again, he told the agency Ward was involved as a diversionary tactic; Ward ultimately spent roughly 18 months clearing his name. Audible bought the rights to the story and turned it into an eight-episode podcast called “Operation Firewall.”
After the Secret Service, Ward spent six years as CISO at TIAA and two years at Home Depot, then spent three years as a venture capitalist at Insight Partners before co-founding Brightmind.
Ward said his unemotional approach to exits - summed up in his view that founders should "sell on the way up" - is rooted in his career experience. He said the best sales in cybersecurity come between a startup's third and seventh years, and that his team tracks every security acquisition and what buyers are building versus buying.
Brightmind’s second fund will not be entirely focused on cybersecurity, with about 20 per cent going to AI infrastructure deals. Roughly 40 per cent of the first fund’s startups are based in Tel Aviv, and Ward expects a meaningful number of teams to come from Israel.
Early-stage cybersecurity startups are out-raising later-stage rivals for the first time in more than a decade, according to PitchBook, which counted $4.7 billion in seed-through-Series B deals through September, already ahead of the 2025 total despite fewer deals.
Ward said he looks for startups that could displace established companies he considers vulnerable, name-checking 27-year-old Qualys and 24-year-old Tenable. For real-time protection, he favours cyber-specific models that run locally on customers’ own systems. He does not expect Anthropic or OpenAI to take over security, saying they will do “just enough.”
"I've just always looked at people and been like, 'Okay, you know more than me today, but tomorrow, it's going to be a little less, and the day after that, it's going to be less, and eventually, I'm going to catch you and surpass you, and I'm going to know more than you,'" Ward said. "That's how competitive I am."
Analysis
Why This Matters
- Ward's fund targets a cybersecurity market where early-stage startups are outraising later-stage rivals, signalling investor appetite for new security technology.
- His approach of selling companies early rather than waiting for IPOs may influence other cybersecurity VCs.
- The departure of his co-founder and his sole GP status could raise questions about firm stability.
Background
Stephen Ward spent four years in the Coast Guard, then studied criminal justice at Seton Hall before joining the Secret Service in the late 1990s. He worked on financial crimes and cyber investigations after 9/11, famously flipping a hacker who later betrayed him. After leaving the Secret Service, he held CISO roles at J.P. Morgan, TIAA and Home Depot. He joined Insight Partners in 2021 and co-founded Brightmind Partners in 2024 with Gur Talpaz, a former CrowdStrike executive.
What to Watch
- Whether Brightmind closes the fund near its $250 million target given the departure of Talpaz and the current fundraising environment.
- The performance of the first fund's remaining 13 investments, which could determine Ward's ability to raise subsequent funds.
- Israeli cybersecurity startup deal flow: Ward expects about 40 per cent of the new fund's investments to come from Israel.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedWard is targeting roughly $250 million for his second cybersecurity fund.TechCrunch: “Now, Ward is raising a second fund, targeting roughly the same size as the first one. ... a whopping $250 million fund”
- SupportedCrowdStrike agreed to buy SGNL for $740 million.TechCrunch: “SGNL, the identity security startup CrowdStrike agreed in January to buy for $740 million”
- SupportedWard is raising the second fund through Brightmind Partners, and is now its sole general partner after Gur Talpaz left in April.TechCrunch: “This time, though, he’ll be doing it without Talpaz, who left in April along with another early colleague, leaving Ward as the firm’s sole general partner.”
- SupportedBrightmind’s first fund made 14 investments and had one exit, SGNL.TechCrunch: “Brightmind’s first fund has made 14 investments to date, with one exit: that SNGL sale.”
- SupportedBrightmind led SGNL’s Series A 11 months before CrowdStrike agreed to buy it.TechCrunch: “SGNL, the identity security startup CrowdStrike agreed in January to buy for $740 million, 11 months after Brightmind led its Series A”
- SupportedWard said founders should “sell on the way up.”TechCrunch: ““You have to sell on the way up,” he says.”
- Partly supportedAfter the Secret Service, Ward spent six years at TIAA, two years at Home Depot, and then three years at Insight Partners.TechCrunch: “His first private-sector job at J.P. Morgan, where he was recruited in 2007 to build a cybersecurity unit, was the hardest transition of his career”
- SupportedWard spent nine years in the Secret Service and moved from investigations to cyber after the September 11 attacks.TechCrunch: “nine years in the Secret Service”
- SupportedWard said the best cybersecurity company sales come between a startup’s third and seventh years.TechCrunch: “In cybersecurity, he says, the best sales come between a startup’s third and seventh years.”
- SupportedBrightmind’s second fund will put about 20 per cent into AI infrastructure deals.TechCrunch: “Ward says Brightmind’s second fund won’t be entirely cybersecurity, focusing about 20% on AI infrastructure deals.”
- SupportedAbout 40 per cent of Brightmind’s first-fund startups are based in Tel Aviv.TechCrunch: “(Roughly 40% of the debut fund’s startups are based in Tel Aviv.)”
- SupportedWard said, “I’ve just always looked at people and been like, ‘Okay, you know more than me today, but tomorrow, it’s going to be a little less, and the day after that, it’s going to be less, and eventually, I’m going to catch you and surpass you, and I’m going to know more than you.’ That’s how competitive I am.”TechCrunch: “I’ve just always looked at people and been like, ‘Okay, you know more than me today, but tomorrow, it’s going to be a little less, and the day after that, it’s going to be less, and eventually, I’m going to catch you and surpass you, and I’m going to know more than you.’ That’s how competitive I am.”
