Cyber-security software firm ZoneFox has closed a GBP3.6 million Series A funding round led by Scottish business angel investment syndicate Archangels, with co-investment from The Scottish Investment Bank and TriCap.
Based in Edinburgh, ZoneFox focuses on providing security systems that effectively combat the growing issue of insider threats to businesses across the financial, pharma, gaming and other business sectors.
Its customers include healthcare firm Craneware, Zenith Bank and Rockstar Games.
It recently launched a new machine based learning solution, called ZoneFox Augmented Intelligence (AI). The product has been created over the course of six years and is targeted at a wide range of business sectors.
The funding, which is the largest round ever to be led by Archangels, will be used to grow the business. 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 per cent 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.
Graves says: “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.”
Niki McKenzie, investment director at Archangels, adds: “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.”
