Endpoint protection specialist Avecto has received a $49 million minority investment from JMI Equity.
It’s a vote of confidence for Avecto’s Defendpoint software, which protects computers and servers by integrating three key functions: controlling and removing administrator rights (privilege management), dynamically allowing approved applications to run (application control), and isolating threats (sandboxing). The endpoint sector is growing in importance as more types of internet of things devices come online, and with the continued expansion of mobile workforces tapping corporate networks and operating in multiple locations.
According to Chris Lewis, managing director at Results International, which acted as exclusive financial adviser to Avecto and its shareholders on the transaction, the investment shows that prevention is back as a credible cyber-defense strategy.
“JMI’s £32m investment in Avecto, one of the Europe's brightest stars in cybersecurity software, demonstrates that there is an alternative to detection and remediation,” he told Infosecurity. “JMI is a world-class technology software investor which has an incredibly strong reputation in the market. It’s encouraging for the European technology ecosystem to see them providing growth capital to one of our most promising security software vendors."
To this point, Avecto has built its business without any external funding. Mark Austin, co-CEO at Avecto, said that the funding infusion will help expand its research and development efforts and its market presence.
“JMI’s involvement will help us to take our innovative software to more organizations across the globe as we focus on building awareness and spreading the message that prevention is possible on the endpoint,” he said. “The investment will also help to expedite our ambitious R&D plans, bringing our product roadmap to life.”
As part of the transaction, JMI Equity’s Jit Sinha, general partner, and Suken Vakil, principal, will join the company’s Board of Directors.
Headquartered in Manchester, UK, with offices in Boston, Melbourne, Australia and Frankfurt, Avecto was founded by entrepreneurs Mark Austin and Paul Kenyon in 2008. The company now serves more than 600 enterprise clients and said that it has been adding 100+ new customers per year for the past five years. Avecto also has grown revenue more than 50% on a compounded annual basis since 2012.
“Avecto has established itself as a leader in the re-emerging proactive protection space over the last few years and is now bringing on board a world-class tech investor to further accelerate growth,” Lewis said. “The transaction shows both the appetite that US growth investors have to invest in great European companies and Europe's ability to generate world beating software businesses."
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