British Patient Capital commits to adding $35m to Evolution Equity Partners’ new $250m cybersecurity fund

October 23, 2020

British Patient Capital has committed to adding $35m to The Evolution Technology Fund II, which is aiming for a final $250m close to support cybersecurity and enterprise software startups.

The fund is the latest part of Evolution Equity Partners’ two decade-long history of supporting cybersecurity companies. Over that time, the private equity firm has built global leaders over several economic cycles, including to IPO.

Evolution Equity Partners has already used some of the money put into Fund II to invest in companies such as Quantexa, a London based big data intelligence and risk analysis firm. The investor led the firm’s $64.7m Series C funding round in July.

“The growth in cyber is being driven by several factors including the move to virtual working and an increasing demand for secure and private systems for online transacting and communications,” said Judith Hartley, CEO at British Patient Capital. “Evolution Equity Partners, with a team including former CEOs and CTOs of leading cybersecurity companies, are well placed to identify and back the scale-up businesses set to capitalise on this opportunity.

“We have already worked closely with the Evolution team on one of our first co-investments – Quantexa – and I look forward to seeing how their portfolio develops as we work to achieve our vision for more home-grown fully funded companies to fulfil their potential to be players on the global stage.”

Richard Seewald, founder and managing partner at Evolution Equity Partners, added, “In the current environment, cybersecurity is a high priority for every organisation. Increased risk to corporate ecosystems, rising geopolitical risk, and a realignment of budgetary spend towards advanced security issues are all expected to increase demand – this presents significant opportunity for next generation cybersecurity companies.

“The UK is the largest, most concentrated and accessible cybersecurity market in Europe with over 1,000 cybersecurity companies. It’s early growth and growth stage cybersecurity businesses are well positioned to benefit from the increased demand for cybersecurity, offering a solid pipeline for talent and investment.”