INSUBCONTINENT EXCLUSIVE:
Earlier today A Technology News Room covered the launch of a new, $450 million cybersecurity-focused fund, the second from venture group
ForgePoint Capital.The new vehicle, inventively named Fund II, will mostly focus on early-stage companies in the cybersecurity space
As we noted in our earlier coverage, the recent IPOs of Cloudflare (more here) and CrowdStrike (more here) have given cybsersecurity a halo,
showing founders and investors alike that outsize returns are possible in the space
corresponded with the group, asking about fund mechanics (check sizes, investing pace), the cybersecurity sector itself (business models,
valuations) and recent liquidity events (CrowdStrike in particular)
edited for clarity and length
Why raise 50% more for the new vehicle? What is the target number of checks per year? Will it be faster than the preceding fund?ForgePoint
Capital: We were one of the first investors to focus on cybersecurity when we raised our first fund
Since then, the cybersecurity market has grown by more than 50%, driven by the constantly evolving challenges facing businesses, governments
Our team has a singular focus on the market, driving unparalleled domain expertise and insights into emerging industry trends.We will
continue to invest in six to ten new cybersecurity companies per year, and find great opportunities with leading entrepreneurs.Putting
What check size range is the fund targeting, and what is the target deal size for growth-oriented deals?We target up to $25 million for
early-stage ventures throughout the life of an investment, and up to $50 million for growth-oriented companies achieving considerable
In cybersecurity, as elsewhere, the market rewards rapid growth and valuations reflect [that]
We target companies with great teams building innovative solutions that are poised for high growth
While the Crowdstrike IPO certainly boosted attention on the market, over 90% of successful cybersecurity exits are through M-A
Strategic buyers and financial sponsors pay up for companies that can scale.
