New Zealand cybersecurity startup RedShield raises NZ$14 million

Wellington-based RedShield, a cybersecurity startup that provides API protection via web application shielding, has raised NZ$14 million (AU$13m).

New Zealand private equity firm Pencarrow led the round ahead of existing shareholder Sage Technologies.

RedShield’s CEO and co-founder Andy Prow (pictured above) said the support recognised the company’s success in New Zealand , the US, UK and Australia, with the funds going towards more research and global expansion.

“Obviously global growth is key, and that’s where the major opportunities sit for RedShield,” he said.

“Customers and deal sizes overseas are on average four-to-10 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 focused on continuous research in the evolving cyber-security space, enhancing our existing service and ensuring every shielded customer is being protected effectively.”

Prow said the sustainability of the business, including customer satisfaction, staff load, and profitability are as important as rapid growth and expansion.

Pencarrow managing partner Nigel Bingham said cybersecurity is a massive and growing global issue.

“RedShield has consistently demonstrated that its offering is unique globally and provides significant value to its clients,” he said.

Prow said that while his tech startup has global ambitions, local support was a key part of his strategic vision.

“I fully believe in the value of maintaining significant New Zealand ownership as we grow,” he said.

“New Zealand has a proven history fostering innovators who repeatedly excel on the global scale. 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.”