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Friday, March 29, 2024

$100 Million Fund for Cybersecurity

Allegis Capital, a venture capital investor in technology startups, on July 1 announced the first close of Allegis VI, a $100 million early-stage fund committed to cyber security investments.

In addition to targeting cybersecurity startups, the $100 million – committed from new and current investors – will also be used to invest in related companies in data analytics, the Internet of Things (IoT) and virtualization, all areas in which Allegis has been investing for more than 10 years. The fund will invest both in companies that secure legacy computing infrastructure and next-generation computing platforms in which security is inherent in the design.

Allegis hasalready made two new investments under the aegis of its new fund in E8 Security and Signifyd. E8 is developing an advanced threat detection technology that bypasses preventive controls and rule-based monitors. Signifyd protects online stores by scoring hundreds of risk indicators to ensure transactions are legitimate.

Allegis also made cyber security investments in the last 24 months in Bracket Computing, vArmour, Shape Security, Area 1 Security, Synack, Platfora, Moki Mobility and E-File Cabinet.

Allegis has focused on cybersecurity startups, albeit not exclusively, since 2000. Past portfolio companies have included IronPort Systems, an email security firm that was acquired by Cisco Systems for $830 million, and Solera Networks, which was acquired by Blue Coat in 2013.

Limited partners who are funding the effort include institutional and strategic investors and new investor capital includes global pension funds.

There is “a substantial need for new and promising cyber security startups and a huge investment opportunity in them,” said Allegis Founder and Managing Director Robert Ackerman.

“The digital security landscape is global, dynamic and continually evolving as ‘bad actors’ look to compromise information technology networks to achieve their nefarious goals,” Ackerman said. “Hacktivists, criminals and state actors are all involved in a never-ending barrage of increasingly sophisticated attacks on networks that the global digital economy relies upon for all aspects of daily life."

“Hardening and securing these networks to protect consumers, businesses and governments and the information they manage requires continual innovation,” Ackerman added. “And much of that innovation originates in the world of startups.”

Ackerman will invest with long-time colleagues Spencer C. Tall and Pete G. Bodine, also managing directors. The Allegis investment team also includes five prominent venture partners. They are Nawaf Bitar, senior vice president and general manager of the cloud platform business unit of VMware; Tom Gillis, founder and CEO of Bracket Computing; Todd Rowe, managing director of global channel sales at Google; Jeff Williams, senior vice president of worldwide sales and business development at FireEye; and Jean-Louise Gassée, a long-time Allegis partner and founder of Be Inc., the creator of the BeOS computer operating system.

Gassée was a former executive at Apple Inc. Bitar, Gillis and Williams were all former operating executives of Allegis cyber security portfolio companies.

“Over just the past two years, some of the most significant corporations and government entities in the world have been compromised at an unprecedented scale with hundreds of millions of sensitive data records stolen,” Ackerman said. “Successful cyber attacks targeting the US government’s Office of Personal Management, Adobe, E-Bay, Target, Home Depot and JP Morgan, among others, demonstrate that no person, corporation or government entity is immune from these threats.”

With the world’s information now largely in digital form and with much of it accessible over the Internet, the cybersecurity threat is growing at an exponential rate, Ackerman said. In addition, vast quantities of new data are being created every day, making it nearly impossible to keep up with security and private needs using existing technology.

ACG Partners projects an 11 percent annual compounded growth rate of cyber security spending, reaching $140 billion in 2018.

$100 Million Fund for Cybersecurity Homeland Security Today
Homeland Security Today
The Government Technology & Services Coalition's Homeland Security Today (HSToday) is the premier news and information resource for the homeland security community, dedicated to elevating the discussions and insights that can support a safe and secure nation. A non-profit magazine and media platform, HSToday provides readers with the whole story, placing facts and comments in context to inform debate and drive realistic solutions to some of the nation’s most vexing security challenges.
Homeland Security Today
Homeland Security Todayhttp://www.hstoday.us
The Government Technology & Services Coalition's Homeland Security Today (HSToday) is the premier news and information resource for the homeland security community, dedicated to elevating the discussions and insights that can support a safe and secure nation. A non-profit magazine and media platform, HSToday provides readers with the whole story, placing facts and comments in context to inform debate and drive realistic solutions to some of the nation’s most vexing security challenges.

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