He arrested a hacker, then spent 18 months clearing his own name. Now he’s a cybersecurity VC.

The cost of cybersecurity seed funding has more than doubled, making early-stage investments a significantly larger commitment.

Stephen Ward, co-founder of the two-year-old cybersecurity venture fund Brightmind Partners, has closed a $250 million debut fund with co-founder Gur Talpaz. Ward, a former Secret Service agent and CISO at TIAA and Home Depot, brings a pragmatic approach to venture capital, emphasizing selling portfolio companies on the way up rather than solely pursuing IPOs. Brightmind's first fund has already seen one exit: identity security startup SGNL, acquired by CrowdStrike for $740 million. Ward is now raising a second fund, though Talpaz and another colleague have departed to found their own firm, Cognition, which is also targeting a cybersecurity fund. This comes at a time when early-stage cybersecurity startups are attracting more funding than later-stage companies for the first time in over a decade, with average seed rounds significantly increasing.

Ward's direct approach to exits, driven by his background in law enforcement and corporate security, suggests a growing trend among VCs to prioritize quicker, more assured returns in the volatile cybersecurity market. This strategy could influence how founders structure their companies and their expectations for growth and eventual acquisition, potentially favoring deals that offer immediate value over long-term, high-risk IPO aspirations.

The significant increase in early-stage cybersecurity funding, coupled with Ward's focus on strategic exits, indicates a robust and maturing market for specialized security solutions. Investors appear to be betting heavily on innovation in this sector, anticipating consolidation and valuable acquisition targets, while founders may find it easier to secure substantial initial capital but will face pressure to demonstrate clear paths to profitable exits.