Why We Continue to Invest in Todyl

Today, Todyl announced its $50 million Series B financing, led by Base10 Partners, with participation from Anthos Capital, TechOperators, and StoneMill Ventures. We are proud to have partnered with Todyl from the beginning — leading their Seed round — and to have continued our support through the Series A and now into the Series B.

At TechOperators, we seek to invest in operator-led teams addressing fundamental challenges in cybersecurity with architectural innovations capable of scaling across diverse markets. From our earliest conversations, it was clear that Todyl was building something different: an enterprise-grade security platform designed for the operational realities of Managed Service Providers (MSPs) and midmarket businesses — a segment consistently underserved by legacy vendors.

This milestone represents meaningful validation of that vision.

Addressing a Critical Gap

Small and midsize businesses face cybersecurity threats that rival those targeting the world's largest enterprises. Yet the resources available to them — in staffing, tooling, and operational capacity — are markedly less. Managed Service Providers have emerged as the frontline defenders for this segment, yet their task has often been complicated by the need to stitch together fragmented and often incompatible solutions.

Traditional enterprise tools, built for single-tenant environments and resource-rich security teams, were ill-suited for the complex, multi-tenant operating model of the MSP. Todyl recognized this gap and approached it directly, architecting a platform from the outset that could deliver comprehensive security outcomes without overwhelming operational complexity.

The result is a platform that meets the needs of both the MSPs securing hundreds of customer environments and the businesses depending on them.

A Platform Designed for Operational Reality

Todyl’s platform architecture embodies a series of critical design decisions:

• Unified Platform: Combining SASE, Endpoint Security (EDR/NGAV), SIEM, MXDR, SOAR, and GRC into a cloud-native, modular solution.

• Single Agent Deployment: Simplifying operations by reducing the footprint required across diverse environments.

• Incremental Adoption: Enabling customers to deploy capabilities as needed, without disrupting existing operations.

• Operational Efficiency: Streamlining management to reduce the staffing burden on already overstretched IT and security teams.

Todyl was not an attempt to force-fit an enterprise-grade platform onto the midmarket. It was a deliberate build for a different set of operating conditions — reflecting an understanding that simplicity, integration, and speed to value are non-negotiable in this segment.

Why We Continue to Invest

Our conviction in Todyl has only strengthened over time. From Seed stage to Series B, the company's commitment to technical excellence, customer-centric innovation, and disciplined execution has remained consistent.

John Nellen, Todyl’s Founder and CEO, has demonstrated exceptional founder-market fit. His clarity of vision — to empower MSPs and midmarket businesses with tools that rival those used by the largest enterprises — has not wavered. Under his leadership, Todyl has expanded its platform capabilities, broadened its market presence, and maintained a relentless focus on product quality.

The strategic urgency is growing. Regulatory pressures, cyber insurance requirements, and increasing threat sophistication are converging to drive security expectations higher for businesses of all sizes. Todyl is uniquely positioned to meet this demand by delivering an integrated security platform that scales operationally as well as technically.

We view Todyl’s progress not as a product of market tailwinds alone, but as the result of deliberate, disciplined company-building.

Looking Ahead

The midmarket is no longer an overlooked segment in cybersecurity — it is an essential one. Attackers recognize the vulnerabilities inherent in smaller organizations, and customers increasingly expect resilient security outcomes regardless of company size.

In this context, Todyl’s mission to deliver enterprise-grade security, accessible and manageable for midmarket businesses, is both timely and necessary.

We are proud to have been early partners to John and the Todyl team, and we remain excited to support their continued growth. As the cybersecurity landscape evolves, we believe Todyl’s platform — built on clarity, operational empathy, and technical excellence — will become indispensable to the MSPs and businesses that form the backbone of the digital economy.