The Edinburgh-based cyber-security software specialist ZoneFox, has today closed a €4.2 million Series A funding round. The round is led by Scottish business angel investment syndicate, Archangels, with co-investment from The Scottish Investment Bank, and TriCap and follows the €2.9 million in seed funding the company has secured since its start in 2010.
ZoneFox focuses on providing world class security systems that effectively combat the growing issue of insider threats to businesses across the financial, pharma, gaming and other business sectors. It recently launched a new machine learning based solution, called ZoneFox Augmented Intelligence (AI). The product, which is probably the most advanced of its kind to be developed in the UK, has been created over the course of six years and is targeted at a wide range of business sectors.
This funding, which is the largest round ever to be led by Archangels, will be used to grow the business over the next year and beyond. As well as continued product development and innovation, ZoneFox will triple its headcount to 30 staff by the end of 2017, move into a new HQ in Edinburgh and also open a London office, where an extension of its sales and tech team will be based.
The announcement of this Series A round comes on the back of a strong 12 months for ZoneFox, which is headed up by Dr Jamie Graves, a PhD graduate from Edinburgh Napier University. ZoneFox grew by 400% in revenue terms and appointed former BT and O2 Board Director, Steve Davies, as Chairman. It also won two Scottish Cyber-Security Awards, at the inaugural ceremony, for International Contribution to Cyber-Security and the overall Champion of Champions trophy.
Commenting on the funding round, ZoneFox CEO Graves said: “Insider threats are a serious problem for global enterprise. Such is the sophistication of these attacks and the methods used by cyber-criminals, the human mind alone can no longer be expected to monitor and combat such threats alone. Having the funding and support of Archangels, The Scottish Investment Bank and TriCap will allow us to continue to grow and develop ground-breaking solutions that will protect businesses.”
Niki McKenzie, Investment Director at Archangels added: “Archangels’ investors were keen to lead this round of follow on funding in an area that is currently underserved. Customers using ZoneFox report that the product is helping them to shape more robust, tailored and effective IT policies, alerting them to security threats from within their own walls.”