Breaking News

Former AVG executives beef up cyber security investment fund

TechnologyJul 17, 2017 11:38AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Computer security software is shown for sale at a computer store in San Marcos

By Jason Hovet

PRAGUE (Reuters) - A group of former executives and investors from antivirus software maker AVG Technologies (PK:AVGTF) have raised an additional $55 million for their fund that invests in cyber security companies, its managing partner said.

Evolution Equity Partners, which raised $70 million in its first funding round in 2015, is looking to bulk up its portfolio at a time when cyber attacks and hacks worldwide are surging.

Last month, a computer virus dubbed GoldenEye or Petya wreaked havoc on firms in more than 60 countries, disrupting work at ports and factories while causing economic losses estimated in the billions of dollars. [nL8N1JP55N]

Managing partner Richard Seewald said the fund would look to add three to five firms to its portfolio of nine companies, which includes Boston-based cyber security group Carbon Black that has been reported to be a potential stock listing. [nL1N1JQ02A]

Seewald said the fund, based in New York and Zurich, ultimately wanted to have investments in 18 to 25 companies spanning the United States, Europe and Israel.

"The fund is in the portfolio-building phase," he said in a telephone interview. "We are looking at opportunities systematically across all those geographies. Over the next couple of months you will see more activity."

Seewald said the cyber security industry was shifting to next-generation technologies utilising artificial intelligence (AI) and machine-learning (ML), and firms developing this offered the biggest growth opportunities.

Evolution typically invests in $5 million to $25 million chunks. Its latest deal was leading a $10 million funding round for Danish next-generation security platform provider LogPoint to help the company to expand.

Seewald said competition was growing for investments.

Research firm CB Insights data showed a record year for the number of deals in cyber security in 2016. At the same time, security spending is rising and should rise almost 8 percent to $90 billion in 2017 before topping $113 billion by 2020, according to information technology research company Gartner.

Former AVG executives beef up cyber security investment fund

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email