Howard County-based RackTop Systems raises $15 million

Our Maple Lawn client RackTop Systems was featured in the Baltimore Business Journal:

Baltimore Business Journal  |  Ryan Sharrow

RackTop Systems, co-founded by CEO Eric Bednash (left) and chief technology officer Jonathan Halstuch, has raised $15 million.

RackTop Systems, a nine-year-old Howard County developer of secure systems used for storing data, has raised $15 million in funding.

The Series A financing round was led by Razor’s Edge Ventures and Grotech Ventures. Participants in the round included the Maryland Venture Fund, Blu Venture Investors and Gula Tech Adventures, an investment firm founded by former Tenable CEO Ron Gula and his wife Cyndi.

RackTop, headquartered in the Maple Lawn development in Fulton, plans to use the funds to boost sales and marketing efforts, as well as product development.

CEO Eric Bednash said the company has about 40 employees today, with about 30 based in Maryland. RackTop plans to continue hiring for sales and software development positions in conjunction with the fundraise. Bednash said he hopes to double the size of RackTop’s staff over the next two years.

Bednash declined to disclose RackTop’s revenue, but said the company grew by about two and a half times last year. He hopes to see similar growth this year. He said the infusion of new capital will help propel RackTop down its “aggressive growth path.”

The company’s flagship product, BrickStor, is a data storage and management platform that protects sensitive data from cyber attacks. RackTop’s technology manages more than 50 petabytes of customer data across the public sector, media and entertainment, financial services and health care industries. A petabyte is 1 million gigabytes.

Bednash said RackTop’s key customers operate in the federal intelligence, media and advertising and life science spaces. All those industries face similar challenges in having to manage large amounts of critical, often never-deleted data. RackTop’s technology aims to assist companies in securing that data in a compliant way, as regulations around data privacy and management continue to tighten worldwide.

The network-attached storage market is expected to reach $45.21 billion by 2023, according to MarketsandMarkets, growing at a compound annual rate of 20.1 percent.

Racktop was co-founded in 2010 by Bednash and Jonathan Halstuch, who is chief technology officer.