Arlington VC Pioneers New Wave with $32M Cybersecurity Fund

Summary

• Arlington-based Runtime Ventures has launched a $32 million debut fund. It backs pre-seed and seed-stage cybersecurity startups exclusively.
• Early bets. The firm had already made 11 investments from the fund.
• Operators turned investors. Co-founders David Endler and Michael Sutton have both built and run security companies.
• Significance for Arlington and beyond. The founders argue the Washington, D.C., area has the talent for security startups but too little early-stage capital.
• Hands-on support. The pitch to founders is experience as well as money.

A cybersecurity seed fund from Arlington

Runtime Ventures, a venture capital firm based in Arlington, Virginia, and Austin, Texas, announced a $32 million fund on April 2, 2025. It invests only in cybersecurity startups at the earliest stages.

Where the money is going

The firm had already made 11 investments from the fund, in seed-stage companies working on code analysis, fraud protection, threat detection and browser security.

“Having been in the trenches building cybersecurity startups, we know firsthand how tough those early years can be,” Endler said in the announcement. “Great ideas alone aren’t enough. Founders need the right team, resources and support to turn their companies into successful ventures.”

Who runs Runtime Ventures

Both partners come from the industry. Sutton was chief information security officer at Zscaler and founded StoneMill Ventures. Endler co-founded SpyCloud and Jumpshot.

Sutton told ARLnow that some of the best-known founders and operators in security had invested in the fund. “Some of the most successful cybersecurity founders and operators in the world have chosen to back us and they’re anxious to get involved,” he said.

Why the D.C. region

Sutton argues the Washington area should rank near the top for security founders, thanks to its talent pool and its proximity to the federal government. What it lacks, compared with Silicon Valley or Boston, is early-stage capital.

“That’s a gap that we really hope to be able to help fill, because there is no doubt in my mind that the DMV area should be at the top of the list for any tech founders, especially in cybersecurity,” he said.

Experience over cash

Endler says the firm’s value goes beyond money. Founders get partners who have already made the early mistakes.

“It’s not just about capital, it’s about having the right people in your corner who’ve scaled cybersecurity companies before,” he told ARLnow.

What it means for founders

A $32 million fund is small by venture standards, but at the seed stage it can back dozens of companies. For security founders in the D.C. area, it adds a local investor that knows the market and the buyers, including government buyers. For the region, it is a test of whether more early capital can turn its security talent into more startups.

John King, CISSP, PMP, CISM

John King currently works in the greater Los Angeles area as a ISSO (Information Systems Security Officer). John has a passion for learning and developing his cyber security skills through education, hands on work, and studying for IT certifications.