17 Apr Evolution Equity Partners Closes On $1.1 Billion For Cybersecurity Investment In Oversubscribed Fund Raise
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The Evolution Technology Fund III LP is the largest dedicated cybersecurity fund raised to date
Growth and early growth stage investor committed to differentiated portfolio characterized by strong operating performance of software companies safeguarding the digital world.
NEW YORK, N.Y., Apr. 17, 2024 – Evolution Equity Partners announced the final closing of Evolution Technology Fund III, LP and total capital commitments of $1.1 billion to back visionary entrepreneurs building next-generation cybersecurity companies that safeguard the digital world. The fundraise was oversubscribed by existing and new limited partners representing a diversified mix of leading institutions, sovereign investors, insurance companies, endowments, foundations, fund of funds, family offices, and high-net-worth individuals.
The capital committed gives Evolution Equity Partners a dedicated pool of capital to pursue opportunities for investment ranging from $20 million to $150 million in cybersecurity and in companies utilizing machine learning and AI to build market leading platforms. Significant investments made to date by Evolution include Arctic Wolf, Protect AI, Talon Cyber, Torq, Snyk, Sweet Security, Aqua Security, Oleria, Halcyon, Cybsafe, Phosphorus, SecurityScorecard, DefinedAI, Carbon Black, Panaseer, AVG Technologies, OpenDNS, Pentera, and Quantexa amongst 60 portfolio companies the firm has backed.
Richard Seewald, founder and managing partner at Evolution Equity Partners, said, “The overwhelming success of this fundraise was driven by strong support from both existing and new investors who recognize and support our cybersecurity-focused investment strategy and our ability to build value and generate liquidity across market cycles. In one of the toughest-ever fundraising environments, we are grateful for the tremendous support. Given this backdrop, we remain disciplined about investment pacing and prioritizing high-conviction next-generation cybersecurity investment opportunities driven by companies that are safeguarding the digital world. Additionally, our approach to portfolio diversification, coupled with decades of investment, technical and operating experience fundamentally drives our consistency.”
Evolution Equity Partners — Investor First Platform Leveraging Deep Operating, Technical and Executive Resources to Drive Growth.
Evolution Equity Partners was founded by investor and technology entrepreneurs Richard Seewald and Dennis Smith, who manage and lead the firm, and a specialist team of 30 professionals based out of New York City, Palo Alto, London and Zurich. The team members have been founders, operating executives and investors in leading software companies around the world and are committed to a mission of helping exceptional entrepreneurs develop market-leading companies. Evolution Equity Partners’ Centers of Excellence for Cybersecurity Growth, the firm’s high-performance engine, has a clear goal: To provide the ultimate operating playbook on how to effectively take cybersecurity startups from idea to IPO and help equip companies with the knowledge, tools and strategy to drive performance.
Demand For Cybersecurity Grows With 10X Upside According To McKinsey Consulting
“We are still in the early innings of a secular trend in the cybersecurity space that involves increased spend by large enterprises, smaller businesses and consumers alike, a rapidly expanding attack surface, market consolidation and demand for next-generation products and services that make this a very compelling segment for investment,” said founder and managing partner Dennis Smith. “We are experiencing unprecedented disruptive forces including the impact of AI and machine learning, accelerated digitalization and increasingly sophisticated adversaries in a highly complex geopolitical environment. Cybersecurity companies have boundless opportunity to embody their innovations and leverage creativity for sustainable benefit to society. Evolution Equity Partners is proud to continue to back leading cybersecurity companies.”
Recent Exits By Evolution Equity Partners
On Nov. 6, 2023, TechCrunch reported that Palo Alto Networks had acquired Talon Cyber Security, a specialist in building enterprise browsers for securing distributed workforces sources, for $625 million. Talon — co-founded by Ofer Ben-Noon and Ohad Bobrov — had raised around $143 million, with its investors including Team8, Entrée Capital, Evolution Equity, LightSpeed and Cyverse Capital. Talon announced its $100 million Series A round in Aug. 2022, according to CTech. Evolution Equity Partners led the round, with participation from Ballistic Ventures, CrowdStrike’s Falcon Fund, Merlin Ventures, SYN Ventures, and previous investors including CrowdStrike co-founder and CEO George Kurtz, Lightspeed Venture Partners, Sorenson Ventures, and Team8.
About Evolution Equity Partners
Evolution Equity Partners, based in New York City, Palo Alto, London and Zurich, makes investments in rapidly growing cybersecurity software companies that safeguard our digital world. The firm was founded by investor and technology entrepreneurs Richard Seewald and Dennis Smith, who manage and lead the firm and its partners have been involved as founders, investors and as senior operating executives in leading software companies around the world. Evolution currently has over $2 billion of assets under management in a growing portfolio of market leading companies. Learn more at evolutionequity.com and follow us at LinkedIn and Twitter.