Investment led by Archangels
ZoneFox raises £3.6m in record funding round
Scottish investment group Archangels today unveiled its biggest funding round.
The syndicate raised £3.6 million in Series A funding for Edinburgh-based ZoneFox, a leading cyber-security software specialist.
The investment, led by Scottish business angel investment syndicate Archangels, will see the company triple its headcount to 30 with a new HQ in the Capital and expansion into London by the end of 2017.
Co-investment came from the Scottish Investment Bank and TriCap and follows the £2.5 million in seed funding the company has taken since 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.
CEO Jamie Graves said: “ZoneFox has been working exceptionally hard over the last six years to develop a product that will provide the modern enterprise with a truly 21st Century cyber-security solution.
“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.
“We have established a strong reputation and generated a lot of interest from some global organisations, which have in turn become clients.
“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.”
ZoneFox customers include healthcare firm Craneware, Zenith Bank and Rockstar Games.
The announcement of this Series A round comes on the back of a strong 12 months for the company, which 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.
Niki McKenzie, Investment Director at Archangels, said: “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.”