Venture capital firm Scottish Equity Partners (SEP) has led a USD8 million (GBP5m) financing round for Metaforic, a software company based in Glasgow and California, which has developed products to combat piracy and hacker attacks.
The funding round was supported by the company’s existing investors Pentech Ventures and the Scottish Investment Bank’s Scottish Venture Fund. Metaforic will use the funds to expand its international sales and marketing activity.
Metaforic, which counts leading international video game manufacturers and enterprise software businesses in its customer base, solves a major headache for these businesses, who lose billions of pounds of revenue each year from piracy and hacker attacks on their products.
The company was founded in Glasgow by Andrew McLennan, Neil Stewart, and Linda Mackellar, and has expanded significantly under the leadership of experienced top team of Chairman Bill Krepick and Chief Executive Dan Stickel, who previously led NASDAQ-listed Macrovision, a leading provider of IP-protection technologies. The company now has a worldwide presence, with sales, engineering, and support operations in Glasgow, a sales, support, and marketing base in San Jose, California, and a sales and support presence in Tokyo, Japan.
Stuart Paterson (pictured), a partner at SEP, says: "We are very confident in the growth prospects for Metaforic. It has a very strong management team who have succeeded in this space before. Its products serve an urgent need for games companies and enterprise software businesses to deploy software solutions which prevent loss of revenue through piracy, or need the reassurance that their software has been hardened against cyber attack."
Paterson adds: "Metaforic’s software solutions are far more effective than rival products and much-needed. Loss of revenue from piracy in the games market alone is estimated at more than USD10 billion a year. There are also strong growth opportunities in enterprise and embedded software too where we believe Metaforic’s solution is the best and simplest to implement."
Metaforic CEO Dan Stickel says: "We are pleased to add such an experienced and successful firm as SEP to our investor group, and pleased that our previously existing investors have all participated in this round as well. Metaforic technology has been years in development, and has now proven itself in the field, with excellent results in multiple markets. Our customers tend to be somewhat shy about the security technologies they use, but some of the biggest names in the industry are now using Metaforic technology."
Craig Anderson, a partner at Pentech Ventures, says: "Metaforic has made considerable progress since our initial investment in 2008 along with the Scottish Investment Bank’s Scottish Co-investment Fund, and is experiencing growing demand for its range of security and asset protection products, based on its unique anti-tamper technology. This latest financing round, coupled with a management team with significant industry experience, will allow the company to capitalise on this significant market opportunity."