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Cybersecurity has had a rough go of it lately , withinvestmentin the sector dropping a precipitous 40 % compared to the class prior . But there are promising too soon , even preliminary , signs of a retrieval .
The Brobdingnagian absolute majority of chief information security officers reportedhigher budget for 2024 , according to the cybersecurity - focused VC firm NightDragon . And , despite lower overall investment in the cybersecurity industry in Q1 2024 , the identification number of trade increase compared to Q1 2023 , per recruitment outfitPinpoint .
It ’s against this background thatEvolution Equity Partners , a growth chapiter investment firm ground in NYC , on Tuesday set up a $ 1.1 billion cybersecurity and AI investment company , the third such fund in Evolution ’s history .
“ The Evolution Technology Fund III has already backed 15 leading cybersecurity ship’s company , initiating its investment period over 12 months ago , ” Seewald said . “ We expect to endue in a portfolio of up to 30 company in the present investment trust . We ’ll work with management teams and founders , offer them with living and perceptivity in areas include sale and marketing , merchandise technology , human capital , M&A and business exploitation , really enable them to stand out . ”
With Evolution Technology Fund III , Evolution ’s strategy will be to earmark around 75 % of the $ 1.1 billion aggregate for other - growth - microscope stage companies , around 15 % for later - growth - stage startup and around 10 % for early - stage VC tranche , with investment to be made not only in North America but in Europe and Israel , a hotspot for security technical school .
“ Our strategy is to invest that fund in a diversified portfolio across the different stages of due date , ” Seewald articulate . “ We believe that provides private markets investor with diversified exposure to cybersecurity opportunities . ”
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ESG will be another broker , accord to Seewald .
“ Evolution is committed to integrating material environmental , societal and establishment ( ESG ) criteria in its investing appendage and ownership practices , ” he said . “ We actively engage with our portfolio companies creating diverse boards and leading team get varied perspectives to decision - puddle mental process , reduce the risk of groupthink and enhancing accountability . ”
We ’ll accommodate them to it .
Evolution , which has office in Palo Alto , London and Zurich in addition to New York , was found in 2008 by Seewald and Dennis Smith , who meet while work together at the cybersecurity giant AVG ( now possess by Avast ) . J.R. Smith and Karel Obluk — the former CEO and chief scientist at AVG , respectively — joined Seewald and Smith to start Evolution after AVG went public .
Evolution ’s 30 - individual squad cope around $ 2 billion in assets and has back 60 company to particular date ; itsprevious fundwas $ 400 million . Among some of the business firm ’s more successful bets are Arctic Wolf ( which is planning for an IPO ) , Talon Cyber Security ( which is reportedly in negotiations with Palo Alto Networks for an M&A deal ) , Snyk , Aqua Security , SecurityScorecard and Carbon Black .
