SideChannel, Inc. Company Profile

Background

Overview

SideChannel, Inc. is a cybersecurity firm specializing in providing comprehensive security solutions tailored for mid-market and emerging companies. The company offers a range of services, including virtual Chief Information Security Officer (vCISO) services, risk assessments, compliance support, and proprietary software platforms designed to enhance organizational security. Founded in 2017, SideChannel has established itself as a key player in the cybersecurity industry, focusing on making robust security measures accessible to businesses of various sizes.

Mission and Vision

SideChannel's mission is to simplify cybersecurity for organizations by providing expert guidance and innovative solutions that protect critical assets and data. The company's vision is to empower businesses to operate securely in an increasingly digital landscape, ensuring that cybersecurity becomes an integral and manageable part of their operations.

Primary Area of Focus

The company's primary focus is on delivering tailored cybersecurity services and technologies that address the unique challenges faced by mid-market and emerging companies. This includes offering strategic security leadership through vCISO services, implementing risk management frameworks, and providing advanced security technologies to safeguard organizational infrastructure.

Industry Significance

In an era where cyber threats are becoming more sophisticated and prevalent, SideChannel plays a crucial role in bridging the security gap for mid-market companies. By offering accessible and effective cybersecurity solutions, the company contributes to the overall resilience of the business sector against cyber threats.

Key Strategic Focus

Core Objectives

• Enhancing Cybersecurity Accessibility: Making high-quality cybersecurity services and technologies accessible to mid-market and emerging companies.

• Expanding Service Offerings: Continuously developing and introducing new services and products to meet the evolving security needs of clients.

• Strengthening Market Presence: Building a robust presence in key sectors, including defense and government, to establish credibility and trust.

Specific Areas of Specialization

• Virtual CISO Services: Providing experienced security leadership to organizations lacking in-house expertise.

• Risk Assessments and Compliance Support: Offering comprehensive evaluations and guidance to ensure organizations meet industry standards and regulations.

• Proprietary Software Solutions: Developing and deploying software platforms like Enclave to enhance network security and risk management.

Key Technologies Utilized

• Enclave Platform: A zero-trust network microsegmentation solution designed to simplify network segmentation and enhance security for small and mid-sized businesses.

• Insider Threat Program: A program launched to help organizations detect, contain, and respond to risks posed by internal users, employees, or partners.

Primary Markets Targeted

• Mid-Market and Emerging Companies: Focusing on businesses that require robust cybersecurity solutions but may lack the resources to build extensive in-house teams.

• Regulated Sectors: Targeting industries such as healthcare, energy, and government, where compliance and security are paramount.

Financials and Funding

Funding History

SideChannel has undergone strategic developments to enhance its financial position and service offerings.

• Acquisition by Cipherloc Corporation: In July 2022, Cipherloc Corporation acquired SideChannel, integrating its vCISO services into Cipherloc's portfolio. This acquisition aimed to combine Cipherloc's encryption technology with SideChannel's cybersecurity expertise to offer comprehensive solutions to the middle market.

Recent Financial Performance

• Fiscal Year 2024: SideChannel reported revenues of $7.4 million, marking a 12.8% increase from the previous year. The net loss was reduced to $785,000 from $7.0 million in the prior year, indicating improved financial health.

• Third Quarter Fiscal Year 2025: The company reported revenue of $1.78 million, a 3.8% decline compared to the same period in the previous year. Gross margin decreased to 47.0%, and the net loss widened to $261,000.

Utilization of Capital

The capital from the acquisition and subsequent funding has been utilized to:

• Expand Service Offerings: Develop and launch new programs like the Insider Threat program to address emerging security challenges.

• Enhance Technological Capabilities: Invest in the development and deployment of proprietary software solutions such as Enclave.

• Strengthen Market Position: Increase marketing efforts and establish a presence in key sectors, including defense and government.

Pipeline Development

Key Pipeline Candidates

• Enclave Platform: A zero-trust network microsegmentation solution designed to simplify network segmentation and enhance security for small and mid-sized businesses.

• Insider Threat Program: A program launched to help organizations detect, contain, and respond to risks posed by internal users, employees, or partners.

Stages of Development

• Enclave Platform: Launched in September 2022, Enclave is in the growth phase, with ongoing enhancements and adoption by various clients, including two Department of Defense agencies.

• Insider Threat Program: Introduced at DEFCON 33 in August 2025, the program is in the early adoption stage, with initial client interest and integration with the Enclave platform.

Target Conditions

• Enclave Platform: Aims to address network security challenges, particularly in implementing zero-trust architectures and microsegmentation for small and mid-sized businesses.

• Insider Threat Program: Focuses on mitigating risks from internal threats, including those posed by employees, contractors, and third parties.

Anticipated Milestones

• Enclave Platform: Continued adoption by mid-market companies and expansion into additional sectors, including defense and government.

• Insider Threat Program: Integration with existing client infrastructures and expansion of service offerings to address a broader range of internal security threats.

Technological Platform and Innovation

Proprietary Technologies

• Enclave Platform: A zero-trust network microsegmentation solution designed to simplify network segmentation and enhance security for small and mid-sized businesses.

• Insider Threat Program: A program launched to help organizations detect, contain, and respond to risks posed by internal users, employees, or partners.

Significant Scientific Methods

• Zero-Trust Architecture: Enclave utilizes a zero-trust model to ensure that all network traffic is authenticated and authorized, reducing the risk of unauthorized access.

• Microsegmentation: The Enclave platform employs microsegmentation to create secure zones within a network, limiting lateral movement of potential threats.

AI-Driven Capabilities

• Threat Detection and Response: The Insider Threat program integrates advanced analytics to identify and mitigate internal security risks, enhancing organizational resilience.

Leadership Team

Executive Profiles

• Brian Haugli – President and Chief Executive Officer

Brian Haugli serves as the President and CEO of SideChannel. He has extensive experience in cybersecurity, having founded RealCISO, a cybersecurity risk assessment SaaS platform, and served as an Adjunct Professor at Boston College.

• David Chasteen – Executive Vice President

David Chasteen is the Executive Vice President of SideChannel. He has a background in cybersecurity, having served as the former CISO of GoFundMe and the San Francisco Police Department.

Key Contributions

• Brian Haugli: Led the strategic direction of SideChannel, overseeing the development and launch of key initiatives such as the Enclave platform and the Insider Threat program.

• David Chasteen: Played a pivotal role in the development of the Enclave platform, leveraging his expertise to create a solution tailored for small and mid-sized businesses.

Leadership Changes

Recent Appointments

• Appointment of Independent Directors: Following the acquisition by Cipherloc Corporation, SideChannel expanded its board to include independent directors with expertise in finance, software, and information security to support the company's growth and strategic initiatives.

Competitor Profile

Market Insights and Dynamics

The cybersecurity market is experiencing significant growth, with the global market size expected to increase from $173.5 billion in 2022 to $266.2 billion by 2027, expanding at a compound annual growth rate (CAGR) of 8.9%. This growth is driven by the rise in cyberattacks targeting enterprises, the need for compliance with regulatory requirements, and the increasing adoption of digital technologies across industries.