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RedShield Security raises NZ$14m to drive revenue growth and accelerate product innovation

RedShield, a world leading web application and API protection company, has raised NZ$14m of capital funding from lead investor Pencarrow (a NZ private equity firm) and existing shareholder, Sage Technologies.

Andy Prow, RedShield’s CEO and co-founder, stated that “it is fantastic to welcome a partner of Pencarrow’s calibre into RedShield and to receive continued support from Sage Technologies.”

He continued “This funding recognises the excellent results we have achieved to date not only in our home market of New Zealand but also in the United States, Australia and the UK. It provides the resources to capitalise on the platform established and the huge opportunity ahead. Obviously global growth is key and that’s where the huge opportunities sit for RedShield. Customers and deal sizes overseas are on average four to ten times larger than our NZ deals, and are expected to accelerate way beyond this.”

“However it’s not all about recurring revenue growth. This raise, and RedShield’s next phase is also strongly focussed on continuous research in the ever moving cyber-security space, enhancements to our existing service and making sure every shielded customer is being protected effectively. To me, sustainability of our business from an ongoing customer satisfaction, staff load and profitability is as important as rapid growth and expansion.”

Nigel Bingham from Pencarrow fully supports the current RedShield management and strategic direction, which has built strong relationships with a range of partners and a diverse customer base.

“We are excited about the opportunity to partner with RedShield. Cyber security is a massive and growing global issue. RedShield has consistently demonstrated that its offering is unique globally and provides significant value to its clients.”

“As active and supportive investors, we will be partnering with Andy and the senior management to help execute on the company’s vision and strategic direction as it rolls and out scales its offering globally.”

Andy Prow says that taking capital from a leading New Zealand private equity player was a strategic choice. “I fully believe in the value of maintaining significant New Zealand ownership as we grow. New Zealand has a proven history of innovators who repeatedly excel on the global scale. The New Zealand cyber-security services are truly world class encompassing research, consulting and penetration-testing services, and we’re helping to lead the charge in our growing SaaS and security platforms space. I firmly believe that New Zealand’s innovation and trustworthiness are highly valued on the global scene.”

Pencarrow is New Zealand’s longest established private equity firm and has invested almost $500 million of equity capital in mid-sized New Zealand businesses since inception in 1993. Pencarrow’s investors include high net worth individuals, family offices, iwi, community trusts and institutions.

 

Media Release dated 17th September 2019