Observable Networks, an emerging leader in advanced threat detection services, 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 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.

Since its founding in 2011 in St. Louis, Observable Networks has seen rapid growth in the use of its services, based on its 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.