Summary

In this episode of the In/Organic Podcast, host Christian Hassold explains the “why” behind MasterCard's $2.6 billion acquisition of Recorded Future. Christian’s breakdown of the acquisition story explains Recorded Future’s role in cybersecurity, national security, and how the CIA venture arm, In-Q-Tel landed on their cap table. The discussion includes context on the origins of Recorded Future, its unusually limited capital requirements, and how Recorded Future has likely out performed many other companies that achieved near billion-dollar valuations over the past five years.

Takeaways

• MasterCard acquired Recorded Future for $2.65 billion.
• Recorded Future is a significant player in cybersecurity.
• The CIA's investment highlights the strategic importance of Recorded Future.
• Cybercrime poses a $9 trillion threat globally.
• Recorded Future provides intelligence for both businesses and governments.
• Recorded Future's growth rate was impressive at 25% CAGR.
• The deal represents a 7.8x revenue multiple, indicating strong market confidence.

Chapters

00:00 Introduction

02:43 Overview of Mastercard's Acquisition of Recorded Future

03:20 Analyzing Mastercard's Acquisition Strategy

03:56 Use Case: Credit Card & Fraud Transactions

07:31 Use Case: Protecting & Defending Assets

10:02 What Is Recorded Future?

12:33 In-Q-Tel and CIA's Involvement

18:22 What’s Next for Recorded Future?

18:58 Conclusion

Connect with Christian & In/organic Podcast

Christian's LinkedIn: https://www.linkedin.com/in/hassold/

In/organic on LinkedIn: https://www.linkedin.com/company/inorganic-podcast

In/organic on YouTube: https://www.youtube.com/@InorganicPodcast/featured

Episode References

https://www.mastercard.com/news/press/2024/september/mastercard-invests-in-continued-defense-of-global-digital-economy-with-acquisition-of-recorded-future/

https://b2b.mastercard.com/news-and-insights/blog/ecommerce-fraud-trends-and-statistics-merchants-need-to-know-in-2024/

https://www.theinformation.com/briefings/insight-sells-cyber-firm-to-mastercard-for-2-65-billion

https://www.statista.com/forecasts/1280009/cost-cybercrime-worldwide

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