Publications
Publications
- March 2024 (Revised August 2024)
- HBS Case Collection
Darktrace: Scaling Cybersecurity and AI (A)
By: Jeffrey F. Rayport and Alexis Lefort
Abstract
In 2023, Darktrace CEO Poppy Gustafsson was contemplating her growth strategy at a leading U.K.-based cybersecurity venture, launched in 2013 by a group of anti-terror cyber specialists, University of Cambridge mathematicians, and artificial intelligence (AI) experts. Darktrace was also one of the few technology companies built around AI from the start prior to Generative AI, and it offered AI-powered solutions to protect customers from a variety of complex online threats. Two years earlier, Darktrace had gone public on the London Stock Exchange with a market capitalization of $2.4 billion. In the wake of the IPO, in 2022, both the chief marketing officer and chief revenue officer had approached Gustafsson to tell her they wanted to step down from their roles. They were cofounders, and Gustafsson had worked with them from the start. Gustafsson and her team were weighing the decision of whether to bring on external hires or to promote from within for the CRO and CMO roles. The goal was to scale Darktrace from $500 million in revenues to $1 billion. The decision to recruit externally had significant investment implications, given fears of recession, high inflation, and layoffs faced by many companies in the second half of 2022. Recruiting talent from the outside would change the organization’s hiring model, compensation structure, and incentives. But there were other concerns. Would newly recruited talent from the outside mesh with the culture and organization that Gustafsson and her cofounders had built at the company’s U.K. headquarters? She knew she would have to manage sensitivities on both sides. What was the best way to ensure a smooth transition, and what qualities should she be looking for in the two new C-level executives? Was this a necessary step to realize her ambitions for growth?
Keywords
Technology; Talent; Scaling; Entrepreneurship; Cybersecurity; Leadership; Business Growth and Maturation; Recruitment; Resignation and Termination; AI and Machine Learning; Growth and Development Strategy; Organizational Culture; Going Public; Technology Industry; United Kingdom; Europe; United States
Citation
Rayport, Jeffrey F., and Alexis Lefort. "Darktrace: Scaling Cybersecurity and AI (A)." Harvard Business School Case 824-092, March 2024. (Revised August 2024.)