Avecto Raises First External Funding with $49M from JMI Equity
JMI Equity, the specialized growth equity firm based in San Diego and Baltimore, has invested $49 million to establish a minority stake in Avecto, a U.K.-based network security firm that has established its U.S. headquarters in Somerville, MA.
Avecto specializes in so-called endpoint security, an approach that protects a corporate network by focusing on the devices accessing the network (the endpoints), and monitoring their status, activities, software, authorization, and authentication. Avecto says its Defendpoint technology enables a global organization to improve network security by managing user privileges, controlling device applications, and “sandboxing,” a method for isolating and testing applications from untrusted sources without allowing the program to access the host system.
Avecto was founded in 2008, and the company says it has increased its revenue by 50 percent annually since 2012. The company raised no external funding before the JMI deal.
In a statement released today, Avecto co-CEO Paul Kenyon said the investment from JMI would enable the company to expand its global sales and marketing efforts and expedite its R&D plans.
Avecto currently has 42 U.S. employees, and plans to hire seven more by the end of the year, according to a spokesman for the company. The U.S. workforce accounts for almost a third of Avecto’s 151 employees worldwide.
JMI Equity, founded in 1992 with a stake from BMC co-founder John Moores, makes growth equity investments in mature software companies. Since its founding, the firm has raised more than $3 billion and invested in more than 120 companies. Jit Sinha, a general partner based in Baltimore, and Suken Vakil, a principal based in San Diego, are joining Avecto’s board as part of the deal.