Stealthnet Ai
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StealthNet AI - Deal Memo
Date Reviewed: January 8, 2026 Stage: Pre-Seed / Seed Source: Pitch Deck
Summary
One-liner: Autonomous AI-powered red team platform deploying specialized agents for continuous security testing (pentesting, API testing, vishing, dark web monitoring) at a fraction of manual pentest costs.
Founders:
- Alex Thomas (Co-Founder) - Former Bishop Fox pentester, founded Red Sentry ($0 to $3M ARR), Cyber Operations degree from Dakota State
- Patrick Nevels (Co-Founder) - EIR at venture studio (CEO of portfolio company), PwC innovation lead, B2B sales background
Round:
- Raising: $2.5M on SAFEs
- Valuation caps: $8M → $10M → $12M (staggered)
- Use of funds: 50% Product/AI, 30% GTM, 20% Compliance/Ops
Key Metrics:
- $30K ARR with 10 paying customers
- $350K+ pipeline
- 3 of 10 customers on annual contracts (rare in cybersecurity)
- Live product across 4 domains (External, API, Dark Web, Vishing)
- Turkey partnership: $228K projected revenue over 12 months
- Hybrid pentest quotes: $55K in active quotes
Investment Thesis
1000x Opportunity?
POTENTIALLY YES - Strong market dynamics with right execution
Market size:
- TAM: $15B+ (Penetration Testing $2.45B + Vulnerability Scanning $12.5B + Social Engineering $1.2B)
- Market growing due to: compliance mandates (SOC 2, PCI, HIPAA), AI-generated code expanding attack surfaces 10x
Why this could be 1000x:
- Massive market disruption - Traditional pentests cost $40-100K, take 2-6 weeks, miss 76% of issues with automated scanners. 80% of companies can't access regular pentests.
- AI timing - Expanding attack surface from AI-generated code creates existential need for scalable security testing. Traditional manual model can't scale.
- Multi-agent platform play - Not a single point solution; building a "fleet" of agents that becomes a platform. Vision: fully orchestrated AI red team by Q2 2026.
- Distribution leverage - MSSP/MSP channel provides scalable distribution without direct enterprise sales costs.
Concern: At $8-12M cap and $2.5M raise, need to see path to $1B+ company for 1000x. Cybersecurity M&A is active (see Pentera at $1B+ valuation), but requires category leadership.
Kingmaker Fit?
MODERATE FIT
- CTO network: Security decisions often involve CTOs, CISOs. Some overlap but not direct ICP match (selling through MSSPs, not direct to enterprise CTOs initially).
- Technical credibility: AI/security background relevant for technical validation conversations.
- GTM help: Enterprise security sales experience could help Phase 3 (direct enterprise) strategy.
- Network value: Could potentially connect to enterprise security buyers, but MSSPs are the initial target.
Not the strongest kingmaker fit, but not zero either. The MSSP distribution strategy reduces dependency on direct intros.
Green Flags
- Proven founder (Alex) - Built Red Sentry from $0 to $3M ARR. Bishop Fox pedigree (elite pentesting firm). Knows the buyer, the product, and the sales motion.
- Live product with paying customers - 10 customers, $30K ARR, 4 agents operational. Not vaporware.
- Annual contracts in cybersecurity - 3 of 10 chose annual (rare for this market). Strong PMF signal.
- Technical founder with domain expertise - Cyber Operations degree, hands-on pentesting experience, built internal security tools. Knows the technical depth required.
- Smart GTM - Distribution-first through MSSPs/MSPs avoids brutal enterprise sales cycle. Let partners sell.
- Multi-agent platform vision - Fleet approach vs point solutions creates expansion potential and defensibility.
- First-mover in AI vishing - Novel capability, differentiated from pure scanning tools.
- Strong competitive positioning - Combines manual-level depth with AI cost/speed. Neither scanners nor manual pentests do this.
- Clear roadmap - Stage 1-4 progression to fully orchestrated red team is concrete and achievable.
- Hybrid service offering - $150/hr AI-augmented pentesting at $7,200 vs $40,000 for manual. Compelling economics.
Red Flags
- Small ARR - $30K ARR is very early. Need to see velocity to $100K+ quickly.
- Co-founder dynamics unclear - Alex has deep technical/sales background; Patrick is operator/sales. What's the division? Who's CEO?
- Crowded competitive landscape - Pentera ($100M+ raised), Horizon3.ai, XBOW, Terra Security. Well-funded competitors.
- AI moat question - How defensible are AI agents? Could well-funded competitors replicate quickly?
- Turkey partnership risk - $228K projection over 12 months from single partner is concentrated. Need to see diversification.
- No disclosed prior raise - Is this first institutional capital? What's the cap table look like?
- Enterprise sales required eventually - MSSP channel is smart for now, but Fortune 500 direct sales is different motion.
- Compliance uncertainty - Autonomous pentesting raises questions about liability, authorization boundaries.
Competitive Analysis
| Company | Funding | Approach | Differentiation |
|---|---|---|---|
| Pentera | $100M+ | Automated BAS | Established, enterprise-focused |
| Horizon3.ai | $60M+ | NodeZero autonomous pentesting | Strong team, AI-driven |
| XBOW | Unknown | AI security testing | Emerging |
| Terra Security | Unknown | AI pentesting | Emerging |
| StealthNet AI | Raising $2.5M | Multi-agent fleet + vishing | Unique vishing capability, MSSP distribution |
StealthNet's edge:
- First-mover in AI vishing (social engineering simulation)
- Fleet approach (multiple specialized agents) vs single capability
- MSSP distribution model vs enterprise-only
- Hybrid human+AI service offering
Risk: Well-funded competitors could add vishing, expand agent coverage. Need to build defensible moat through data/learning or distribution lock-in.
Key Questions
Team
- What's the CEO/leadership structure between Alex and Patrick?
- How did the founders meet? How long working together?
- What happened with Red Sentry? Did Alex exit? Still involved?
- Vision test: Do they pass the George/Alex test? Is conviction tangible?
Market
- What's the sales cycle with MSSPs vs direct enterprise?
- How do Pentera/Horizon3 customers perceive StealthNet?
- What's customer expansion rate? (30% of customers expanding is mentioned)
- Turkey partnership - how firm is the $228K projection?
Product
- How defensible are the AI agents? What prevents replication?
- What's the data flywheel? Does usage improve the models?
- Compliance/liability - how do you handle authorization for autonomous pentesting?
- False positive/negative rates vs manual pentests?
Financials
- What's the current burn rate and runway?
- What milestones will $2.5M achieve?
- Path to $500K ARR? What's the timeline?
- Any prior funding? What's cap table look like?
Decision
PROCEED TO TIER 2 - Schedule founder call
Rationale
This passes the initial filter with caveats:
1000x case:
- $15B+ TAM with secular tailwinds (compliance, AI attack surface expansion)
- Proven founder who's built and scaled in this exact space ($0 to $3M ARR)
- Platform vision (multi-agent fleet) that could become category leader
- Strong timing: AI-generated code creating security testing crisis
However, need to verify:
- Path to category leadership vs being acquired early at modest multiple
- Defensibility of AI agents against well-funded competitors
- Founder conviction and ambition level (1000x mindset?)
Kingmaker case:
- Moderate fit through enterprise security connections
- Less critical given MSSP distribution strategy
- Could add value in Phase 3 (direct enterprise)
Key concerns to resolve:
- Competitive moat against Pentera, Horizon3
- Alex's exit from Red Sentry - clean? Conflict?
- Revenue velocity - need to see $30K → $100K+ path
- Founder conviction / vision test
Next Steps
- Schedule founder call with Alex and Patrick
- Vision test - assess conviction, obsession level, 1000x ambition
- Understand Red Sentry story - what happened, any conflicts
- Deep dive on competitive differentiation and moat
- Customer reference calls (MSSP partners)
- Understand cap table and prior funding
Appendix
Market Size
| Segment | Size |
|---|---|
| Penetration Testing | $2.45B |
| Vulnerability Scanning | $12.5B |
| Social Engineering Simulation | $1.2B |
| Total TAM | $15B+ |
Traction Timeline
| Metric | Value |
|---|---|
| Paying Customers | 10 |
| ARR | $30K |
| Pipeline | $350K+ |
| Annual Contracts | 3 of 10 |
| Turkey Partnership (projected) | $228K over 12 months |
| Active Hybrid Quotes | $55K |
Product Roadmap
| Stage | Timeline | Capabilities |
|---|---|---|
| Stage 1 | Now | External, API, Dark Web, Vishing agents |
| Stage 2 | Q4 2025 | Internal, Cloud, Phishing/SMishing agents |
| Stage 3 | Q1 2026 | Mobile, SMS phishing, AI/LLM vulnerability testing |
| Stage 4 | Q2 2026 | Fully orchestrated multi-agent red team |
Team
| Name | Role | Background |
|---|---|---|
| Alex Thomas | Co-Founder | Bishop Fox pentester, Red Sentry founder ($0-$3M ARR), Cyber Ops degree |
| Patrick Nevels | Co-Founder | EIR (CEO), PwC innovation lead, B2B sales, MIS degree |
Customers
High Point Networks, OrbitalFire, PhishFirewall, ITWay, Green Qube, Vizius Group
Documents
attachments/StealthNet AI Pitch Deck.pdf- Pitch Deck
Research Update — January 15, 2026
Web Research Findings
Company Profile:
- Crunchbase: Pre-Seed stage, Atlanta, Georgia
- Company Website: AI agents for offensive security
- Active blog with posts through January 2026
Key Claims (from website):
- 70% of breaches exploit vulnerabilities that proper pentesting could identify
- Global shortage of 3.4M cybersecurity professionals
- Platform claims: 90% cost reduction, 35% improvement in breach prevention
- Compliance-ready reports in minutes vs days
Founder Activity:
- Patrick Nevels LinkedIn: Active promoting vishing protection and agentic AI for offensive security
- Alex Thomas LinkedIn: Writing blog posts about AI agent fleet for pentesting
- Alex described as "Bishop Fox veteran and successful startup founder"
Positioning:
- "Pioneering autonomous AI-powered penetration testing"
- "Making enterprise-grade security accessible to organizations of all sizes"
- Seeking pre-seed funding to "democratize pentesting"
Next Action
- Search Steven's email for prior communication with alex@stealthnet.ai
- Reschedule founder call (Steven canceled Dec 23)
StealthNet AI - Contacts
Founders
| Name | Role | Phone | Calendar | ||
|---|---|---|---|---|---|
| Alex Thomas | Co-Founder | alex@stealthnet.ai | — | Calendly | |
| Patrick Nevels | Co-Founder | — | — | — |
Related Contacts
| Name | Role | Notes |
|---|---|---|
| — | — | — |
Relationship Timeline
| Date | Type | Summary |
|---|---|---|
| Dec 12, 2025 | Meeting booked | Steven booked 30-min call with Alex |
| Dec 23, 2025 | Steven canceled (sick), asked for deck | |
| Dec 23, 2025 | Alex sent deck, Calendly, confirmed raising, 2 clients want to invest | |
| Jan 8, 2026 | Deck review | Completed Tier 1 DD — proceed to Tier 2 |
Last Touchpoint
Date: December 23, 2025 Status: Ball in Steven's court — Alex responded, awaiting reply Next Action: Book call via Calendly, send follow-up email
StealthNet AI - Notes
Running log of communications, meetings, and Q&As. New entries at top.
December 23, 2025
Type: Email Thread Summary: Gmail conversation with founder Alex Thomas
From Steven (Dec 23, 2025):
- Had scheduled meeting with Alex, but canceled due to being sick from Taiwan
- Asked: 1) Are you actively fundraising? 2) Can I have your investor deck and booking link?
From Alex Thomas (Dec 23, 2025):
- Confirmed they are actively fundraising
- Mentioned 2 existing clients want to write angel checks
- Provided deck and scheduling link
Key Takeaways:
- Active fundraise confirmed
- Strong signal: existing customers want to invest (PMF indicator)
- Deck provided (reviewed in Jan 8 analysis below)
Contact Info:
- Email: alex@stealthnet.ai
Next Step: Reschedule founder call, prepare vision test questions, ask about Red Sentry story
January 8, 2026
Type: Initial Review Summary: Reviewed pitch deck and completed Tier 1 due diligence.
Key Observations:
- $30K ARR with 10 paying customers
- Live product across 4 domains (External, API, Dark Web, Vishing)
- Founder Alex Thomas has strong background (Bishop Fox, Red Sentry $0→$3M ARR)
- Raising $2.5M on SAFEs at $8-12M caps
- Distribution-first GTM through MSSPs is smart
- Turkey partnership projects $228K over 12 months
Impressions:
- Strong technical founder with proven execution
- Product is live and selling (not vaporware)
- Annual contracts in cybersecurity = strong PMF signal
- Multi-agent platform vision is compelling
- Need to assess founder conviction / 1000x ambition
Decision: PROCEED TO TIER 2 - Schedule founder call
Follow-ups:
- Schedule call with Alex Thomas and Patrick Nevels
- Vision test - assess conviction and obsession level
- Understand Red Sentry story and any conflicts
- Customer reference calls (MSSP partners)
- Deep dive on competitive moat vs Pentera/Horizon3