{"id":19581,"date":"2024-04-25T12:54:08","date_gmt":"2024-04-25T16:54:08","guid":{"rendered":"https:\/\/www.insightpartners.com\/?p=19581"},"modified":"2024-04-25T13:03:33","modified_gmt":"2024-04-25T17:03:33","slug":"ceo-amitai-ratzons-results-oriented-attitude-is-forging-penteras-cybersecurity-success","status":"publish","type":"post","link":"https:\/\/www.insightpartners.com\/ideas\/ceo-amitai-ratzons-results-oriented-attitude-is-forging-penteras-cybersecurity-success\/","title":{"rendered":"CEO Amitai Ratzon\u2019s results-oriented attitude is forging Pentera\u2019s cybersecurity success"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Before Amitai Ratzon became CEO of Pentera, he was a VP of sales in the world of fintech ScaleUps. \u201cI get [things] done,\u201d he says, simply. \u201cIn every sales role I\u2019ve had, my team has outperformed expectations. My bible is: lead from the front, don\u2019t follow textbooks, and uphold operating discipline.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cPrior to Pentera, I\u2019d never worked in cybersecurity. CEOs in this industry typically come from an elite tech background,\u201d he continues, \u201cbut ours is not your typical founding team story.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Founding Pentera in 2015 \u2014 formerly Pcysys \u2014 Arik Liberzon created the logic and wrote the code, and Arik Faingold began hunting for a CEO to take the startup forward. Ratzon was Faingold\u2019s first choice, and in September 2017, he met Liberzon for lunch.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt was a blind date in an Asian fusion restaurant,\u201d Ratzon recalls. \u201cWe were a pair of 40-year-old hopeless optimists imagining how we would build a business like no other.\u201d\u00a0<\/span><\/p>\n<h2>\u201cA match made in heaven\u201d<\/h2>\n<p><span style=\"font-weight: 400;\">The two men soon realized that while, on paper, they were very similar \u2014 born one month apart, family men with military backgrounds \u2014 their skills were different yet complementary. Liberzon had the technological know-how, and Ratzon had the sales and go-to-market pedigree.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cArik didn\u2019t want to be CEO, and I didn\u2019t want to be him,\u201d Ratzon says. \u201cWe were a match made in heaven.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The pair assembled a leadership team, cherry-picking talent from their extended networks, like Aviv Cohen for CMO and Ran Tamir for CPO. \u201cArik knew who we needed from the tech space, and I knew the best from the marketing and sales domains,\u201d Ratzon explains.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pentera has pioneered a new approach to detecting and responding to cyber threats. Unlike many companies that simulate a hack, Pentera launches a real attack \u2014 albeit a benign one \u2014 mimicking real hackers, in order to test the security controls of an organization\u2019s entire infrastructure and exploit weaknesses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe get straight to the crown jewels,\u201d explains Ratzon.<\/span><\/p>\n<blockquote><p><em><span style=\"font-weight: 400;\">While most cyber companies offer week- or month-long trials for prospective customers to evaluate their software and see its value, Pentera requires just six hours. \u201cThat\u2019s all it takes,\u201d he says.<\/span><\/em><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">While most cyber companies offer week- or month-long trials for prospective customers to evaluate their software and see its value, Pentera requires just six hours. \u201cThat\u2019s all it takes,\u201d he says.<\/span><\/p>\n<h2>Leaning into team experience<\/h2>\n<p><span style=\"font-weight: 400;\">Pentera is used by 1,000 customers as of April, from multinational retailers to global banks and hedge funds to national infrastructure organizations. With a 350-person team, Pentera now has a presence in 20 countries.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you ask Ratzon how he and the team have made Pentera such a success, prepare for a multi-faceted answer. There\u2019s a lot of secret sauce here. The senior leaders are all over 40, and Ratzon credits this maturity for Pentera\u2019s supercharged growth.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe all have families, which means there\u2019s less ego.\u201d Back in 2018, the top brass sat down to discuss what kind of culture they wanted to build at Pentera. \u201cWe have all been burned before, and we decided to leave all the bad outside Pentera, bringing only the good,\u201d Ratzon explains.<\/span><\/p>\n<h2>\u201cWe never make excuses; we find solutions\u201d<\/h2>\n<p><span style=\"font-weight: 400;\">Discipline and teamwork are strong values at play within Pentera.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe never make excuses; we find solutions,\u201d says Ratzon. \u201cWe lead from the front and level with our people about the challenges we face. We also focus on internal training and promotions from within.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Staff are allocated stock options in Pentera when they join. \u201cYou get more as you continue to meet our expectations in the company,\u201d Ratzon says. \u201cWe really invest in our people.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, staff attrition is extremely low, with many team members building long-term careers at the fast-growth company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ratzon may be the CEO but he is in constant contact with frontline sales. \u201cI\u2019ve been traveling for the last two months,\u201d he says. \u201cI\u2019ve gone from Spain to Houston, Brazil to the U.K.\u201d Spending time with the sales team as they work on increasing Pentera\u2019s international footprint has been invaluable, he reveals. \u201cI\u2019m in the field with our people. I hear direct feedback on our product. I know about any blind spots before they become an issue.\u201d<\/span><\/p>\n<hr \/>\n<p><b>Scale up your career<\/b><span style=\"font-weight: 400;\">: See all open roles at <\/span><a href=\"https:\/\/jobs.insightpartners.com\/jobs\/pentera\"><span style=\"font-weight: 400;\">Pentera on the Insight Partners job board.<\/span><\/a><\/p>\n<hr \/>\n<h2>The investor POV<\/h2>\n<blockquote><p><i><span style=\"font-weight: 400;\">\u201cThese guys have never missed a forecast, hitting each goal, quarter on quarter, like clockwork.\u201d<\/span><\/i><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-14687 size-large\" src=\"https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Thomas-Krane-Managing-Director-Insight-Partners-1-1024x576.png\" alt=\"Thomas Krane Managing Director, Insight Partners\" width=\"1024\" height=\"576\" srcset=\"https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Thomas-Krane-Managing-Director-Insight-Partners-1-1024x576.png 1024w, https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Thomas-Krane-Managing-Director-Insight-Partners-1-300x169.png 300w, https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Thomas-Krane-Managing-Director-Insight-Partners-1-768x432.png 768w, https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Thomas-Krane-Managing-Director-Insight-Partners-1-1536x864.png 1536w, https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Thomas-Krane-Managing-Director-Insight-Partners-1.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Managing Director <a href=\"https:\/\/www.insightpartners.com\/team\/thomas-krane\/\">Thomas Krane<\/a>, who now sits on Pentera\u2019s board, first started chatting with the founders in 2018. He explains that there are a lot of \u201csmoke and mirrors\u201d in the cyber industry. It takes time to work out whose technology is unique.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cYou see lots of companies all making similar claims,\u201d he says. \u201cWe kept in touch for two years, building a relationship and pulling back the curtain on their product.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In early 2020, Krane flew to Israel to talk to the team about supporting their future growth. His previous cyber investments include the likes of Tenable and Darktrace. \u201cHe was only 30 when we met, which may seem young, but had so much experience running deals,\u201d Ratzon says. \u201cHe knew that what we needed was to put the Pentera train on the right rails.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt was my dream to have Insight as an investor,&#8221; Ratzon adds. &#8220;It&#8217;s not only like I&#8217;m admitted to Harvard. It&#8217;s that I&#8217;m the only student admitted to Harvard in my class.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAmitai and Arik are a powerful combination, and we liked the unique way they had joined forces,\u201d Krane says. \u201cToo many cyber companies come to market with amazing technology but a major deficiency when it comes to the go-to-market side of the equation.\u201d<\/span><\/p>\n<h2>A journey of continuous adaptation<\/h2>\n<p><span style=\"font-weight: 400;\">Insight invested in <\/span><a href=\"https:\/\/www.insightpartners.com\/ideas\/pcysys-announces-25-million-series-b-funding-round-led-by-insight-partners\/\"><span style=\"font-weight: 400;\">Pentera\u2019s Series B in 2020<\/span><\/a><span style=\"font-weight: 400;\">, the deal closing in the summer, a few months into the pandemic. Krane praises Ratzon\u2019s ability to flex and adapt his plans as circumstances change.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cLots of CEOs were telling us, \u2018We can\u2019t talk. Everything\u2019s on hold because of COVID\u2019,\u201d says Krane. \u201cAt Pentera, they said, \u2018We\u2019re still going for it. Our projections haven\u2019t changed.\u2019 They reconfigured their product, so they didn\u2019t have to be on premises to install.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The global tech industry was shaken by macro corrections in 2021 and 2022, but Pentera has emerged unscathed. \u201cThey are in the minority of companies that weren\u2019t forced to do a reduction in workforce,\u201d Krane says. \u201cPentera\u2019s operating discipline and culture have proven to be great differentiators in times of macro challenges.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Insight encouraged Pentera to consider new revenue streams and upselling opportunities. \u201cWe were a one-trick pony,\u201d admits Ratzon. \u201cNow we have six products.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company\u2019s approach to international expansion hasn\u2019t followed a typical tech playbook. \u201cMost companies I know, once they\u2019ve raised a Series A, just focus on the U.S.,\u201d explains Ratzon.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThey relocate to Silicon Valley or Boston or New York, but Pentera never followed that template. For us, Germany, Sweden, and the UAE have been just as attractive as the U.S. That\u2019s been our secret weapon. When Japan is having a bad quarter, Spain is doing great. Insight trusted us to follow our own path.\u201d<\/span><\/p>\n<h2>The power of a supportive investor<\/h2>\n<p><span style=\"font-weight: 400;\">Insight helped Pentera solve three key challenges. The first was all about the brand. \u201cPentera was called Pcysys, and no one could pronounce it,\u201d says Krane. \u201cWe helped them catalyze under the Pentera brand.\u201d <a href=\"https:\/\/www.insightpartners.com\/team\/gary-survis\/\">Gary Survis<\/a>, operating partner in Onsite&#8217;s Marketing Center of Excellence (COE), further explains Pentera&#8217;s brand journey: &#8220;Many of our portfolio companies ask if it is too early to invest in a brand.<\/span> The answer is it is never too early, and Pentera has embraced the importance of creating a brand in the noisy cybersecurity space from the onset.&#8221;<\/p>\n<blockquote><p><em><span style=\"font-weight: 400;\">&#8220;Many of our portfolio companies ask if it is too early to invest in a brand.<\/span>\u00a0 The answer is it is never too early, and Pentera has embraced the importance of creating a brand in the noisy cybersecurity space from the onset.&#8221;<\/em><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">The second challenge was to rationalize the capitalization table. \u201cThere were some tensions that needed to be managed,\u201d Ratzon says. \u201cInsight helped us to create an amazing cap table, only best of breed.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Insight also supported the evolution of the leadership team. \u201cBringing in an outside CEO is common in the U.S. but not seen so often in Israel,\u201d Krane explains. \u201cWe brought our experience of how to understand the role of the hired CEO relative to the board. We helped support that dynamic.\u201d<\/span><\/p>\n<p><a href=\"https:\/\/www.insightpartners.com\/ideas\/pentera-announces-150m-series-c-at-1-billion-valuation-to-disrupt-legacy-vulnerability-management-market\/\"><span style=\"font-weight: 400;\">Insight then participated in the Series C two years later<\/span><\/a><span style=\"font-weight: 400;\">. \u201cWe have been hugely impressed with the pace of innovation at Pentera,\u201d Krane says. \u201cThey have evolved from a single product to a truly end-to-end platform.\u201d The business should be closing in on $100M in sales by the end of this year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The global cybersecurity industry was valued at nearly $222B in 2022 by Next Move Strategy Consulting. <\/span><a href=\"https:\/\/www.nextmsc.com\/report\/cyber-security-market\"><span style=\"font-weight: 400;\">It is forecast to exceed $657B in value by 2030<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">Pentera, focused on Automated Security Validation, aims to dominate this space. \u201cI\u2019m as competitive as it gets,\u201d Ratzon says.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThese guys have never missed a forecast, hitting each goal, quarter on quarter, like clockwork,\u201d Krane says. \u201cBased on that track record, there\u2019s no reason Pentera couldn\u2019t become a leading public cybersecurity company.&#8221;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before Amitai Ratzon became CEO of Pentera, he was a VP of sales in the world of fintech ScaleUps. \u201cI get [things] done,\u201d he says, simply. \u201cIn every sales role I\u2019ve had, my team has outperformed expectations. My bible is: lead from the front, don\u2019t follow textbooks, and uphold operating discipline.\u201d \u201cPrior to Pentera, I\u2019d [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":19921,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[132],"tags":[],"class_list":["post-19581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-software-leaders","topic-stories","domain-cybersecurity"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.1 (Yoast SEO v23.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CEO Amitai Ratzon\u2019s results-oriented attitude is forging Pentera\u2019s cybersecurity success | Insight Partners<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.insightpartners.com\/ideas\/ceo-amitai-ratzons-results-oriented-attitude-is-forging-penteras-cybersecurity-success\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CEO Amitai Ratzon\u2019s results-oriented attitude is forging Pentera\u2019s cybersecurity success\" \/>\n<meta property=\"og:description\" content=\"Before Amitai Ratzon became CEO of Pentera, he was a VP of sales in the world of fintech ScaleUps. \u201cI get [things] done,\u201d he says, simply. \u201cIn every sales role I\u2019ve had, my team has outperformed expectations. 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