Evolution Equity Partners Launches $1.1 Billion Cybersecurity and AI Fund

Evolution Equity Partners Launches $1.1 Billion Cybersecurity and AI Fund

In a time when cybersecurity investment has seen a significant decline, Evolution Equity Partners, a growth capital investment firm based in NYC, has launched a $1.1 billion cybersecurity and AI fund. This marks the third fund of its kind in Evolution’s history and comes as a promising sign of recovery for the industry.

The fund, named Evolution Technology Fund III, was oversubscribed, with participation from a variety of investors including endowments, sovereign investors, insurance companies, foundations, fund of funds, family offices, and angels. The fund will focus on investing in cybersecurity firms and startups that leverage machine learning and AI to build market-leading platforms.

Richard Seewald, managing partner at Evolution Equity Partners, stated that the fund has already backed 15 leading cybersecurity companies and expects to invest in a total of up to 30 companies. The fund will allocate around 75% of the total amount to early-growth-stage companies, 15% to later-growth-stage startups, and 10% to earlier-stage VC tranches. Investments will not only be made in North America but also in Europe and Israel, known for its security tech innovation.

Seewald emphasized that ESG (environmental, social, and governance) criteria will be a key factor in the investment process. The firm is committed to integrating ESG criteria in its investment processes and ownership practices, actively engaging with portfolio companies to create diverse boards and leadership teams.

Evolution Equity Partners, founded in 2008 by Seewald and Dennis Smith, manages around $2 billion in assets and has backed 60 companies to date. The firm’s previous fund was $400 million and has seen success with investments in companies like Arctic Wolf, Talon Cyber Security, Snyk, Aqua Security, SecurityScorecard, and Carbon Black.

With the launch of Evolution Technology Fund III, the cybersecurity industry may see a much-needed boost in investment and innovation, providing support and resources to companies looking to excel in the ever-evolving landscape of cybersecurity.