RedShield raises $14m to drive revenue growth accelerate product innovation
Wellington, New Zealand: Tuesday 17th September 2019
RedShield, a world-leading web application and API protection company, has raised $14m of capital funding from lead investor Pencarrow (a NZ private equity firm) and existing shareholder, Sage Technologies.
Andy Prow, RedShield’s CEO and co-founder says, “it’s fantastic to welcome a partner of Pencarrow’s calibre into RedShield and to receive continued support from Sage Technologies.”
“This funding recognises the excellent results we have achieved to date, not only in our home market of New Zealand but also in the United States, Australia and the UK. It provides the resources to capitalise on the platform established and the huge opportunity ahead. Obviously global growth is key, and that’s where the major opportunities sit for RedShield. Customers and deal sizes overseas are on average four to ten times larger than our NZ deals, and are expected to accelerate way beyond this.”
“However it’s not all about recurring revenue growth. This raise, and RedShield’s next phase, is also strongly focused on continuous research in the evolving cyber-security space, enhancing our existing service and ensuring every shielded customer is being protected effectively. To me, the sustainability of our business - from ongoing customer satisfaction, staff load, and profitability are as important as rapid growth and expansion,” Prow concludes.
Nigel Bingham, Managing Partner of Pencarrow, fully supports the current RedShield management and strategic direction, which has built strong relationships with a range of partners and a diverse customer base.
“We’re excited about the opportunity to partner with RedShield. Cybersecurity is a massive and growing global issue. RedShield has consistently demonstrated that its offering is unique globally and provides significant value to its clients.”
“As active and supportive investors, we will be partnering with Andy and the senior management to help execute the company’s vision and strategic direction as it rolls and out scales its offering globally,” Bingham says.
Andy Prow says that taking capital from a leading New Zealand private equity player was a strategic choice.
“I fully believe in the value of maintaining significant New Zealand ownership as we grow. New Zealand has a proven history fostering innovators who repeatedly excel on the global scale. New Zealand cyber-security services are truly world-class, encompassing research, consulting and penetration-testing services, and we’re helping to lead the charge in our growing SaaS and security platforms space. I firmly believe that New Zealand’s innovation and trustworthiness are highly valued on the global scene.”
RedShield is the world’s first web application shielding-with-a-service cybersecurity company. Founded, owned and operated by an experienced team of penetration testers and security technologists, RedShield is challenging the status quo of secure software and code remediation by combining web application shielding micro-services and expert security operations services. RedShield secures vulnerable applications, lower costs, and decrease time-to-market.
Pencarrow is New Zealand’s longest established private equity firm and has invested almost $500 million of equity capital in mid-sized New Zealand businesses since its inception in 1993. Pencarrow’s investors include high net worth individuals, family offices, iwi, community trusts and institutions.