One and welcome everybody to another smart money Circle
update. I'm Adam sarhan with me.
Today is David jamat, who's the founder CEO of Cerberus?
Sentinel, ticker symbol is CI. S 0 website is Cerberus.
Sentinel.com David, welcome to the show.
Thank you for having me. Adam.
I appreciate it. So David can I?
We always like to begin. Can you tell us a little about
your journey to get you to the point where you are today?
I'd love to it's interesting Journey.
So I started my first company when I was 23.
It was called arpanet which most people don't know, became the
internet and I was one of six backbone companies, that
succeeded even though I probably shouldn't have but I had great
mentors around me. So this is my seventh
organization that I've started along the way I've helped during
my time of exit of Of my companies or selling them.
I've helped others with other companies or help create
companies with folks, but this company itself was In the making
all from 23 to the experience I have today.
And again, the reason success is you get really smart people
around you. And if you're the smartest
person in the room, you're in the wrong room, I believe in
that 100%. And the success is comes from,
having really smart people around me and having a dream,
and that dream becomes reality when everybody jumps on board.
Otherwise, it's just a danger, even you go on with your life.
So, It's all about execution and people believing in what you're
doing. This company was started that I
had just exited my last company decided to retire, but I had a
lot of customers start calling me.
They've been my previous customers over the last 20 plus
years. I'm saying 20, but so large
Fortune, 500 companies. They know I'm a geek and I
started companies. And so, I said, Look, I'm not
working, but your friend of mine, I'll go out to dinner with
you CEO of host hotels, right? He belongs to the golf course
here and I'm like, hey take me golfing little dinner and
tomorrow, I'll help you with your whatever you need.
Well came pretty quickly that cyber Six years ago was kind of
unfamiliar, right? So people one thing I know about
CEOs or cos a lot of them don't like to go into position without
knowing. And so, this happened four or
five times and I'm one guy and these companies are Fortune 500
with offices everywhere in the world.
So I had to start calling friends of mine.
I would call, for example, compliance have a compliance
officer. I need your help with AAA,
right? That's one of those lines.
General Dynamics. I mean those are large entities
hotels. So, by the way, I need a gap
analysis. I call another friend of mine
that have a company and then these guys are PCI DSS Three
Financial Services to. I need some compliance folks, to
help me with that, as well as do a gap analysis of their company,
I can't do all the work alone. So I started getting six or
seven companies farming out to my friends and then What are you
getting out of this? I'm like they pay me.
Even consultant. But I'm using used to get paid.
So always Eventually I started talking to my friends who had
their companies and their different pillars of cyber.
I started hearing from the executive levels, I don't
understand, cyber why are they charging me so much?
I've come in ago. They're probably charging a
little over much but they're not giving you a solution.
They're trying to sell your product.
And that's where I trademark. Cybersecurity is a culture, not
a product. And so it just happens to be
these. High-level executives are not
only my friends. But you see my customers, so we
had pretty good jobs but what is your exit and ask all my
friends? What's your exit?
What are you gonna do? Your Regional company or you're
not growing like you should most of us see what's an exit.
Because they've never run or exiting companies.
And so I said, what if I did like my first second company did
a roll up but not really real love you.
I get public and you trade your private chips for public chips.
Okay. Some of them said, no, I'm
making way too much money and by the way, you're not probably
high going to do that. Som someone was some were
fearful of it. I said, okay, we'll come back
and see you and so I did in Phoenix around.
Me some of the executives here because we got some folks, I've
known for 30 years like Avnet Roy, Insight Kim and Eric Crown.
The founders just the list was on in there, always been there
for each other and so I was waiting for them to tell me what
was wrong with my again bringing these people together.
Alms a great job, Dave, because when I started the internet
internet company they go. What is the internet?
But I started, CDC, Communications, they're like you
can't compete 32 networks for clear data, networks was
hipaa-compliant host solution for health care.
How you going to get, you know, records from electronic medical
records in the table? They'll never get it to you,
right? Every was thumbs up, so three of
those people in those. Meetings showed up on my door,
48 hours later. And said, when we can stop there
I'm like, I'm just thinking about it.
And so Stephen one of our board members knew we were going
public and he said, what's your ticker symbol?
I said si si SE servers cyber sullenberger.
He said, okay, comes back 15 minutes later and says, now to
Dlisted Chinese food restaurant, Okay, no, Chinese no food.
Industry hands is available. How about Chief Information
Security Officer She is so. What's that mean?
I'm, like, never mind. Just 50, 50 minutes later, I get
an eagle email from him. And he goes, we got it.
It's time to go public. It's nice.
So, how did this all the way through the first initial six
Acquisitions? We went to ogc, which I would
not suggest anybody, but we had to prove to Wall Street.
I didn't want to take PE or VC money and then we funded
through. We went public on what we had
did a reai PO onto NASDAQ January 30.
First this last year this year and since then we've brought
together 16 companies worldwide, well done, there's Talent
everywhere in the world is just not a u.s. talent issue.
It's an issue with 4 million job, openings, going to 12, I'll
need a million people just give me a couple thousand a really
strong. Wow.
Very, very well done. So that's a remarkable story.
I love the serial entrepreneur and side of you.
I've got a similar to Instinct inside of me with that bug.
If you will, the entrepreneurial bug, I love the fact that you've
gone. You went back and you just look
forward instead of looking backwards because he's noticed
all these things before other people did.
So there's a good Arbitrage play there.
And I love the fact that you're in cybersecurity and cyber
security obviously is very much in demand.
So Dave, I guess. The next question is, can you
tell us a little about your company from an investor
standpoint? A lot of large part of our
audience are investors and we just like to know a little about
what you guys do and how you're positioned to the solutions you
provide going forward. I appreciate that.
Well, as I say, I said, the initial companies, we created
the pillars, so we are equipment, agnostic.
And by the way, everybody likes to use this because we don't
recommend products, because typically a company will buy a
product and then another product and have to be service, but they
may have 67 Fortune. 500 may have 16 18 20 vendors.
Well, we look at all the products.
Holistic lie. And how it affects your company
and then we get them to work together which a lot of them,
their disparaging and they discourage each other or they're
not working complimentary. So we initially do compliance
because that's a roadmap for such to.
We see how your compliance is what you map to what you need
and then we look at your company holistically.
Not just take cyber out of it, you look at security physically
socially and your company. What is the assets?
You're trying to protect Is it possible systems, personal
Healthcare information, or is it credit card, you know, PCI, so
or Pi. So that's what we do and then we
help roadmap. So we're virtual C.
So, we hope you roadmap a future because most sea levels, at that
level needs some help. So we look at their budget, try
to schedule it out so that you can keep compliance.
Cybersecurity is a journey, not a point.
In fact, if anyone that's an investor out there and has a
solution for cyber that solves it all.
Yeah. Seriously.
Bring it to me. Oh yeah.
Bring it on up Masters. So our company looks at every
part of your company and how you have your cyber posture and we
look at the whole company, whether it's regional national
International. And then we work on a plan to
help them to minute and if you don't have plans for up-to-date
will help you get there and then we do remediation for the things
because we're pretty thorough. And so we have a list of things
that we come out with. It says You have a laundry list
of things to do. Do you have the ability to fix
it 100 out of 100 times? I don't have any spare people
because they're busy doing their jobs so we said can we help you
will be your partner and help you get to that buster and
believe it or not? We there could be a hundred more
companies like this out there and we wouldn't compete because
there's so much business. In fact, let your followers know
who aren't Cyber experts. Adam, I'll ask you a question.
How much money in 2021 do you think was stolen or created
damage worldwide? Oh well actually this is not a
fair question because I looked at your deck.
It's saw 170 billion dollars. I did not know that before your
deck though. Oh ten point five to six point.
Five trillion six point five trillion.
Wow okay only bent world. I'd oh.
Oh, oh, I see that's on page. Okay, got it.
Yeah, that's further up. I was looking further down.
Okay, yeah, yeah. Six Trillion loss of cybercrime
in 2021, eleven point. Four million admitted estimated
to reach ten point five trillion by 2025 that's 170 billion
spending annualized globally. On info security for 2021.
It's a 300% increase in cyber crime.
Since the pandemic began and new ransomware victim, every 11
seconds and 3.5 unfilled, jobs million job.
Openings in cybersecurity. Wow, that's insane.
That's a lot horse. Your Gardener believe is going
inside were magazine. Believe it's going to ten point
five trillion by 2025. So day further down, it says the
addressable Market opportunity 170 billion dollars in global
info security spending in 2021. Oh, that's spending versus the
okay. I got it now, thanks this
clarification. So the size of the cybersecurity
is Six Trillion in 2021 and spending is 20 billion.
Is that correct? That's correct.
Got you okay? Yeah, it is.
Yeah. That's insane s.
Unbelievable. So before it was a black box and
people like it never happened to me, it's not a matter of if
anymore it's matter when. I mean 35 percent of the traffic
on the Internet is Bots for you know a penetration point right
there. Looking insert something so they
can get into your data. So you've heard a lot about
ransomware, that was kind of under the sheets until the
pandemic. But the phonemic really pushed
it to where people started working from home, and they made
the mistake of, oh, I've got my computer at home.
I'll dial in from my home office.
What if your family is using? What if you have teenage kids
that go, some relation, right? Various and they pick up a virus
full, it's like the town dimmick.
You probably know some people who got covid, right doctor.
Him. Could you tell they were sick
because it happened, you know, it could be up seven days,
right? It's just like the pandemic.
If you get infected, you can't tell right away and back
somebody else before they figure out that you're sick.
And that's the problem with cyber, its people can't
physically, see it, identify it, but it's like depend on McCann.
It spread very, very quickly. Wow.
So let's talk a little about And I know obviously cybersecurity
risk, so there's that component but as a leader in the CEO, how
do you handle two questions, really?
How do you handle risk and then what mistakes you see, people
make with respect to risk management.
That's a great question. First off, you don't know what
you don't know. So, I encourage everyone out
there. Find a reputable, service,
security organization. That's there to be your partner
and not necessarily sell you a product, but look at your
compliance. Look at your threat, we're
different because I take it an IT specialist, their grades,
their job, and there's a big shortage there.
But they're like General Practitioners.
If you actually get hit and you want surgery, do you want an
intern? Yeah, we're Specialists doctors
out there for year. Or do you want a seasoned
professional? Who's going to take care of you?
Right specialist? No question.
We're special speaking like hackers.
So we look at your organization and try to figure out how to get
in which we typically do. And then we talked about the
differences of patching your systems.
That's really risk management is what it is.
Something, I don't know. I need to figure it out and get
somebody who can figure out for me and then follow through with
the plan, to remediate that. I love that.
Some, basically, find me blind spots, identify the blind spots,
and then fix it, solve it. Yeah, but the little mirror up
on the window, whatever you've got to do to fix it sensors,
whatever it is. And most of the folks who you
going to call his like Ghostbusters who you going to
call? You have a breach.
Well, If you don't identify that before it happens, you're going
to be wandering trying to figure it out.
A lot of people say, call my attorney, yeah, call my PR firm
my insurance, no seconds. Matter when the hackers in your
network, right, as they're very good and know as soon as they're
in there, you typically might have a hacker.
A lot of companies, we do Gap analysis, there have been
hackers inside their Network already, they were unaware of
wow, because their systems. Wouldn't catch it so they're
tricky and with a six point five trillion, you know going to 10
there's pretty self funded. Now it's not for kids in the
basement or a couple kids that hoodies.
These are state-sponsored from China, Russia and North Korea,
Iran right? That are penetrate us every day
tens of millions of times because they want to
intellectual property. They want to get into your bank
accounts. So, Those are the risk
management is knowing what your profile is, and then managing it
through the process so that you get to a better cyber posture
now, I love that. That's awesome.
So Dave, let's talk about some Timeless lessons, you've learned
along the way, I'm sure. I mean, you've been in
leadership roles since for, you know, since the 20s, you've seen
some things, you've learned some things, what are some of those
Timeless lessons that you like to share with the audience,
please? Couple mentors.
I was lucky to have three mentors here in town.
They're, they're still, my mentors, very smart educated.
One is an accountant. Seasoned.
Another one is an attorney. Another one is an entrepreneur
and they all happen to be three friends and they wonder what I
was doing. So I got introduced to him,
don't be afraid to ask if you don't know it.
The worst thing you can do is try to fake your way through it,
just understand that you're one person and you're trying to
accomplish something. If you don't know the answer
reach out to somebody, you do, and then they might have
different answers, depending on their experience.
So, I have an advisory committee that I go to regularly.
I have a board and all of them have different insights.
And so the time is listen is truly reach out whether you're
trying to get funding, whether you're trying to build a
business, - or even continue the business, how can I grow faster?
And you'll be surprised how many people reach out and help you.
Yeah, that's really, really good advice.
And what about some Timeless mistakes?
You see people make and how do you avoid them?
I've made mistakes in the past. Typically, the mistakes are
making sure you got the right people in the right job, right?
Because I have the title CEO since I've been 23, but I could
be cooking bottle, washer. It doesn't matter what my title
is. We're all co-workers and treat
everybody that way. And the best thing about this
organization and I told you in the beginning, they're all my
friends and they're now our shareholders because everybody
in this company is a shareholder.
Everybody, in fact, 99.2% this companies owned by everyone in
the company and that's how we designed it, get every working
on the same page but more importantly, someone can step up
to a job but they may not have the wisdom.
I didn't say a smart because there's a lot of smart people.
They may not have the experience in the wisdom to do the job and
if they have the opportunity and you think they can then help
Mentor them. I love a good.
I saw the other day, you're not really successful until you see
someone who work with. You become a leader and there.
They actually teach them to become a leader.
And the third generation you can now stay, I've got great
leadership skills because I actually see them in the
leadership roles. Well, I love that, that's great.
I love seeing people progress and some folks might previous
companies and when I left they exited have started their own
businesses, you're successful and play it forward.
They call me for advice. If I don't have it, I'll tell
him, I don't have it and they'll send them to somebody who does.
And it's a very I'm very Grateful for it and it's really
satisfying to see them succeed and love that.
So that's great way to avoid those mistakes.
Let's talk about leadership and what makes a great leader you
pass on obviously to Future Generations or other people
around you. But what about the actual
day-to-day and week-to-week year to year?
What makes a great leader versus somebody that just can't lead.
So a great example is one of my the first company I put this
really gung-ho individual who brought in, I couldn't figure
out, people didn't understand the internet and this Jim guy
give me a shot. He was a fat salesman.
They know anything about the internet but he our folks are
meetings only five percent quota.
One would meet 100% this guy, blew it out.
Three hundred percent. The first year.
Wow, second year, two hundred percent while he was knocked out
of the park, I put him into a leadership role.
Any struggle because he's a really good salesperson, but I
was so young at the time 25. If he can sell like this, he can
be a leader. So leadership is getting people
to Rally around you so that you can accomplish things and Ryan
the CEO bolt. It was he's a really good friend
and he had some great advice for me.
He said leadership is pick three to five things because a lot of
people work on 20, right a good leader will pick three to five
the impact the company the heaviest and concentrate on that
and if you ask somebody what's the impact you bring to the
company and they hesitate they're in the wrong company.
So the other thing is I tell everyone I want you to be happy.
Don't you smile we have literally the least turnover and
any cyber security company because their shareholders, but
I tell everybody when they join which typically is through the
note bringing companies to us and being part of us if you're
not happy. Two or three days in a row.
Call me and let's talk about it. if I can't solve your problem or
something that organization and still unhappy, then you're in
the wrong company, right? Let's help you get to the right
company. So I encourage people to be
happy the company when people are themselves, but you can only
travel so much. Others control themselves.
So I love that. So what are some obstacles that
you faced and overcome in your journey to getting to where you
are today? And lessons you've learned from
them. Oh, it's interesting, I see a
young Dynamic, keep referring to Ryan, he came from snare.
If you graduate, if you take one year at Stanford, you can drop
out. It's kind of like a badge.
And you did when I started I dropped out of college and thank
goodness, it was successful but people didn't believe because I
didn't have the experience and they would have brought a would
have brought Some more executive team power, and wisdom to the
table. But the struggle was trying to
raise capital and very beginning and probably the best thing for
me was not getting that Capital got Tunes.
Best decisions I've made are the ones I haven't followed through
on that. I was found in Germany yet so I
would encourage you to look at avenues to grow the company
yourself and then if you do need the capital, But the hurdle is
having people believe in it. And believe me, can you and your
team? Just that's why you invest you
believe in the team, right? And that's why we have a Super
Start All-Star International cast that work with me.
I love that. So, ya know that, that's
fantastic. So Dave, how do you handle
adversity when something doesn't go right?
You know, some people can look at become really pessimistic and
go down - path. Some people look at it as an
opportunity. You either win or you learn.
I had something a guest on the show, say that a while ago and
take it as Opportunity to grow. So, how do you handle adversity?
And what lessons would you recommend people?
Do to handle adversity, going forward.
It's starting to company running one was easy.
Everybody would do it. So it's all perspective if there
is so every day and I encourage everybody including the folks, I
helped Mentor which probably not the best Mentor in the world,
but if you have an obstacle, either go into or over it around
it under it, in the last thing, go through it and if it's solid
you're on the wrong path. So take a step back.
Look at why it's Sickle. And you can get as frustrated as
you want, but my grandparents raised me and I spilled milk
that dang it. I would complain about it.
My grandfather just look over and go.
It's going to sit there until you clean it up the fashion
cleaned up, it's over, right? So the quicker you can get
through it. Don't be pessimistic, just take
it and roll with. And what did you learn from
that? And you can ask anyone in this.
Ation or previous. I really don't get frustrated
because there's an answer. To everything out there.
You just have to find the person that has it and if there's not
then that's an obstacle people haven't been able to get past so
it's untrue. Other out.
Yeah, I love that. So okay.
What's the best piece of advice that you like to give your 20
year old self or 25 year old self?
keep on being positive and you know, I know I know I push
through it but I probably Let's say, run it yourself.
Don't try to raise the money and get ahead of yourself.
I've don't I've had mistakes happen but regretting anything.
Now, everything happens for a reason.
Yeah, well there I know it next week or next year, or 20 years
it's funny. I look back even last week,
somebody said, by the way, you know that thing that happened
like a woman that was, I was 2001.
Bomb. Yeah.
Well, this is what And I'm like, no wonder I couldn't make that
happen. So you just have to understand
that our life is a journey and it's all in perspective and
since those running the company, so take the Grady, have a great
perspective, there's nothing holding you back except yourself
now Dave, this has been absolutely fantastic.
Thank you so much investors can learn more.
I like what you said too about the ticker symbol.
It's CSI. Oh, and there's a reason why
that, it's, he tells again, it's consumer, sorry, it's cyber
Security information officer. Is that what it stands for?
It's called Chief Information Security.
Officer Chief Information. Security Officer.
Gotcha. Now that's fantastic.
She sews, the sen has got it a beautiful day.
Thank you so much for coming on the show and hopefully will
speak to you again soon. Thank you.
I appreciate it out. I'm thank you.