Observable Networks' Inc., an emerging leader in advanced threat detection services, today announced it has closed $1.625 million in convertible debt funding from investors arranged by DH Capital, an investment banking firm serving companies in the Internet infrastructure, communications, and SaaS sectors. Observable Networks received additional backing from Vectis Healthcare and Life Sciences Fund II, a private investor, of which Stifel, Nicolaus & Company, Inc. is a general partner. The new round of investment follows previously announced $2.45 million in Series A1 funding from May of 2014.

The capital will be used to fund the growth of Observable Networks' sales and marketing team and increase IT security market awareness of the company's dynamic endpoint modeling technology and cloud-based service platform.

'Participation by current investors is a sign of confidence in our technology and the opportunity we have in the security market,' said Bryan Doerr, CEO of Observable Networks. 'Our dynamic endpoint modeling technology provides customers using cloud-based or traditional infrastructures with unprecedented awareness regarding their network endpoints in both IT and operational technology (OT) networks. Furthermore, our software-as-a-serivce (SaaS) subscriptions and free trial approach to validating our capabilities allow for great flexibility in managing overall cost.'

Since its founding in 2011 in St. Louis, Observable Networks has seen rapid growth in the use of its services, based on its patented endpoint modeling. This service allows large and small organizations in any industry to understand normal behavior for every device in the network and automatically detect potentially dangerous changes in behavior.

'We continue to be impressed by Observable Networks' service and strong growth within the rapidly evolving IT security industry,' said Adam Lewis, partner at DH Capital.

'We believe that Observable Networks has the opportunity to significantly expand access to high quality network security technology and bring its innovative capabilities to broader markets to meet high demand for advanced threat detection services,' said Joseph Schlafly III, representing Vectis II.

About Observable Networks
Observable Networks Inc. is an emerging leader of network security technology and advanced threat detection services that identify compromised and misused networked devices currently escaping detection by network security tools. Observable's endpoint modeling technology includes a cloud-based service platform incorporating automated security analytics and real-time traffic sensors to continuously model all devices on networks of any size, all the time. Endpoint modeling is indifferent to encryption and does not use threat signatures. Observable empowers organizations to readily understand normal and abnormal device behaviors in their networks, helping them to identify compromised devices and facilitate faster remediation. Observable Networks is a privately held company headquartered in St. Louis, MO. For more information, please visit www.observable.net.

About DH Capital
DH Capital is a private investment banking partnership serving companies in the Internet infrastructure, communications, and SaaS sectors. Headquartered in New York City with offices in Boulder, Colorado, the firm's principals have extensive experience and proven abilities in capital formation, finance, research, business development, and operations. DH Capital provides a full range of advisory services to companies and financial institutions, including mergers and acquisitions, private capital placements, financial restructuring, and operational consulting. DH Capital has completed over 130 M&A transactions and private capital placements totaling more than $13.2 billion in value. SaaS Capital, a DH Capital affiliate, is the premier provider of growth capital to emerging SaaS companies. SaaS Capital's innovative, recurring revenue based lines of credit, and years of experience focused exclusively on the SaaS business model, enables portfolio companies to fund substantial growth without selling a significant portion of their business. For additional information about DH Capital, please visit our website at www.dhcapital.com.

About Vectis II
Vectis Healthcare & Life Sciences Fund, II, L.P. ('Vectis II') is a national life sciences venture capital and private equity fund that employs a hybrid strategy of fund and direct investments. Vectis II invests across all sub-sectors of the healthcare and life sciences industries, including plant sciences, biotechnology, medical technology, healthcare services, and health information technology. Co-headquartered in St. Louis and Boston, the fund's co-General Partners are Stifel, Nicolaus & Company, Incorporated and Brooke Private Equity Associates.