WISeKey Closes Additional Fundraising as Part of Growth Strategy and Pre-IPO Plan and Leans Towards the US for Future GrowthSeptember 10, 2013
GENEVA and SAN FRANCISCO, CA–(Marketwired – September 9, 2013) – WISeKey, a leading international mobile cybersecurity provider and a World Economic Forum Global Growth Company, announced today that it has closed additional fundraising as part of a third and last pre-IPO investment round. The Company divided the round into three tranches with the objective of raising a cumulative $120 Million in pre-IPO financing. The previous and second tranche was announced by the Company in December 2011. http://www.startupticker.ch/en/news/december-2011/wisekey-closes-usd35-million-second-round-of-the-c#.Ugn1FqYazCQ
This new $25 Million investment includes a $10 Million investment raised in Q2 2013 and the JV partner’s option to invest an additional $15 Million pre IPO. At the conclusion of the three tranche round, the Company expects to raise an additional pre-IPO $40 Million, which will include the expansion of WISeKey headquarters to the USA. This new funding will come from US institutional investors and from the expansion of WISeKey’s current joint ventures in China, India, Russia and Saudi Arabia, completing the Company strategy to be present in all BRICs.
Since its incorporation in 1999, WISeKey has raised a total of $80 Million and will have raised a pre-IPO total of $120 Million. After the final round of financing, the post money valuation will likely have a $400 Million valuation. WISeKey intends to use the proceeds to enter the BRIC markets and relocate a significant number of its activities to the USA, where there is robust investor support for high-growth companies specializing in the core businesses of cybersecurity, mobiles and social networks can be found.
The company intends to maintain several of its traditional areas of business in Switzerland. This includes its proprietary digital brand protection technology WISeAuthentic© and its Trusted Models. The company’s Swiss hub will also continue to develop high-end encryption projects, including WISePhone© which enables smartphones to make encrypted voice calls within closed groups, and R&D.
As part of its reallocation strategy, WISeKey has already relocated to its development lab to Vietnam where it currently employs 80 engineers for the development WISeID Personal©, the mobile app using encryption technology to store private information and WISfans.com©, the company’s social network for sports fans. The latter has already signed agreements with several iconic sports franchises, including a rights deal with Real Madrid for China, a global agreement with FC Barcelona and most recently an agreement with CR Flamengo, one of the biggest football clubs in Brazil.
The cybersecurity is in high demand due to the recent sharp rise in cybersecurity threats at all levels, from government to individual consumers. The global cybersecurity market’s worth was estimated at roughly $60bn in 2011, with predicted growth rates of 10% for the next three to five years, according to a November 2011 PricewaterhouseCoopers report: http://www.pwc.com/en_GX/gx/aerospace-defence/pdf/cyber-security-mergers-acquisitions.pdf. On a regional level, North America is expected to lead the global cybersecurity market with demand for cybersecurity systems in the US to support market growth. New initiatives such as the White House’s cyber insurance market to create incentives for companies to adopt cyber risk-reducing measures, will add to that growth.
The European cybersecurity market is forecast to account for the second highest spending with the Asia-Pacific region expected to grow at a CAGR of 9% for this industry, while markets in the Middle East are also set to register robust growth. Within the Latin American region, Brazil is expected to be the highest spender on cybersecurity.
Recent acquisition activity has underlined interest in cybersecurity. IBM is said to be paying between $800 Million and $1bn for Trusteer, whose revenues in 2012 were reported at roughly $40 Million. Last month Cisco agreed to buy Sourcefire for $2.7bn with a revenue of $223.1 Million in 2012. Intel aquired McAfee three years ago for $7.68bn.
“Data protection is currently severely under-serviced in today’s fully-connected world. WISeKey is one of the world’s most respected providers for personal, business, and government data security and the company is well-placed to rapidly become a go-to provider in the US.” – Robert Wolf, Founder/CEO, 32 Advisors and member of the WISeKey Advisory Board.
“We are delighted to establish a Joint Venture WISeKey Saudi Arabia and assist the company to open business for WISeKey as the KSA will be spending more than $6bn in 2013 on cybersecurity. Under the Joint Venture agreement, WISeKey and Saudi Crown Investment SA will become financial and operational founders of the new entity” – Mr. Kaher Ben Naser Tahat, CEO Saudi Crown Investment SA The Business Investment Group of HRH Prince Bader Ben Sultan Ben Abdulaziz Al-Saud.
“GJC is extremely optimistic about the partnership with WISeKey SA and with WISeKey Liber’s, the joint venture created, capacities to deploy WK’s technology in the Latin American and Iberian region. We aim to be a solid and a reliable player in this market, helping further develop the e-security landscape across the region. With WISeKey moving to the US, we believe it will enhance the company’s capacities with synergies to be used across the board and across regions, hence helping us to become an established global player in this field,”- Cristiano Câmara, President of GJC.
“We’re thrilled with the progress of this round and this vote of support from investors and our JV partners. This new funding will be utilized to productize our groundbreaking Mobile Suite in the US: WISfans, WISeID and WISePhone technology, significantly broadening the multi-billion dollar market opportunity. Our ambition is to provide US-based consumers with hack-proof mobile technology over the next years”- Carlos Moreira, Founder and CEO of WISeKey.
WISeKey will be announcing further details on its USA operations during the month of September coinciding with its participation as the Official Fan App Supplier of ORACLE TEAM USA, the sailing syndicate preparing to defend the 34th America’s Cup in San Francisco in September. http://www.youtube.com/watch?feature=player_embedded&v=5Wvv39luv9M.
Saudi Crown Investment (SCI) is the Business Investment group of HRH Prince Bader bin Sultan bin Abdulaziz Al Saud along with several of his younger brothers. The Mission of Saudi Crown Investment Group, is to identify strategic European, American industrial, and emerging economies partners to create long term partnerships in the form of Joint Ventures in the Kingdom. SCI intends to create the next generation of Saudi companies, and to build long-term sustainable value for the shareholders as well as for the Kingdom when supporting its citizenship and abiding by compliance principles. The Role of Saudi Crown Investment (SCI) is to provide expertise, funding and business development capabilities to its current and future foreign partners which have developed great Intellectual Property, are successful in their markets, and are looking for high growth opportunities in the Kingdom.
Grupo Jaime Câmara (http://www.gjccorp.com.br) is the leading communications group in the Brazilian North-Central region of the country with 26 media vehicles in Goias, Tocantins and Federal District. GJC holds 4 newspapers (O Popular, Jornal Daqui, Jornal do Tocantins and Daqui Tocantins), 11 TV stations, 9 radio stations and internet media. http://www.gjccorp.com.br/
About 32 Advisors
32 Advisors is a New York-based, global consulting and advisory firm providing senior executives with strategic intelligence and actionable guidance on a broad spectrum of issues affecting immediate and long-term growth and success. 32 Advisors acts as trusted advisors and confidential solution partners to public and private companies, private equity and hedge funds, money managers, governments and other institutions in the U.S. and countries around the world. www.32advisors.com
WISeKey is one of the fastest growing eSecurity companies in the world, being a leading Swiss information security and identity management software and services company established in 1999 and headquartered in Geneva, Switzerland. WISeKey’s mission is to facilitate the global growth of secure electronic transactions by providing businesses, governments and individuals with advanced technology and services that authenticate the identity of communicators, signatures, and objects during Internet transactions. www.wisekey.com
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