AlgoSec plans to use the $36 million investment from private equity firm Claridge Israel to strengthen its partner ecosystem and expand its presence in Asia.
The Ridgefield Park, N.J.-based security policy management vendor had not accepted any external funding in its 14-year history, and continues to have its co-founders serving as CEO and CTO. But with 350 employees and 1,500 enterprise customers, AlgoSec was looking to bring on directors and investors that have experience managing hyper-growth, said Jeffrey Starr, AlgoSec's chief marketing officer.
"It's really been a remarkable organic growth story, getting to this scale, size and success with our own business and revenue," Starr (pictured) told CRN, noting that the vendor has enjoyed "strong double-digit growth" over the past year.
AlgoSec does the majority of its businesses through VARs, MSSPs and other channel partners, Starr said, and said they'll benefit from an expanded sales and marketing force, as well as enhanced technology and research and development capabilities.
The vendor added 120 employees in 2017 alone, according to Starr, and plans to continue investing in the channel as part of its overall growth plan.
"We're committed to bringing more value as we grow to these partners and giving them more ways to deploy security management solutions," Starr said.
AlgoSec had been approached by a number of investors, but ultimately opted to move forward with Herzliya Pituah, Israel-based Claridge since the firm is committed to maintaining AlgoSec's unique culture and focus on customer and employee satisfaction while bringing in lots of domain expertise, Starr said.
Much of that domain expertise will be conveyed through Claridge Managing Director Rami Hadar, who is joining AlgoSec's board of directors. Starr said Hadar had a remarkable track record running Allot Communications during its hyper-growth phase from 2006 to 2014, and said AlgoSec will benefit from his technology knowledge as well as his managerial and entrepreneurial expertise.
AlgoSec also plans to expand its presence around bigger companies, additional verticals, and emerging geographies such as the Asia-Pacific region, according to Starr. The Americas is AlgoSec's largest market with a major presence and salesforce through the region, but Starr said the company is enjoying its fastest-growing in APAC.
The company has done very well in Australia thanks to forward-thinking financial institutions, Starr said, and has seen Singapore and other nations become more security-conscious. AlgoSec also enjoys a very strong ecosystem of VARs, MSSPs and distributors in the region, according to Starr.