by Deborah Gage, WSJ Venture Capital Dispatch – Jul 1, 2015 – Allegis Capital has closed on $100 million toward a new fund that will emphasize investments in cybersecurity startups. The fund’s target is about $150 million, but the firm announced the first close because “we wanted to get going,” said founder and Managing Director Bob Ackerman. “All our deal flow in cyber comes from entrepreneurs, and we want to make sure that every entrepreneur doing something out there knows what we’re doing.”Although the firm has invested in cybersecurity companies since 2000–notable investments include the email security company IronPort Systems, which sold to Cisco Systems Inc. in 2007 for $830 million–historically, cybersecurity has been viewed as a niche, he said. Now “everybody acknowledges there is a problem and we don’t have a lot of explaining to do,” Mr. Ackerman said. Cybersecurity “stands in front of the information technology infrastructure that underlies the entire global economy.”
In 2014—a year in which at least four Fortune 500 companies revealed cybersecurity breaches—U. S. venture capitalists invested $1.77 billion, a record amount, into privately held cybersecurity companies, topping the previous record of $1.62 billion set in 2000 during the dot-com boom. Globally, venture-backed cybersecurity companies raised $1.9 billion last year, also a record, according to Dow Jones VentureSource. The new fund, Allegis VI LP, will invest in two types of cybersecurity startups: those securing legacy infrastructure that was designed before so many things were connected to the Internet, and those creating new platforms that include security as part of the original design.
Read the full article about Allegis Capital’s new fund, including the two companies it has backed from it, at Dow Jones VentureWire.