Cybersecurity and technology investment firm Paladin Capital Group announced on Wednesday that it has closed its Cyber Fund II with over $370 million.
Cyber Fund II is a $372 million multi-stage fund that surpassed its initial target of $250 million, which it plans to deploy across a “number of high-priority cybersecurity and online safety sectors, including innovative technologies that protect critical infrastructure from cyberattacks and networks from ransomware.”
“At a time when cybersecurity could not be more important, Cyber Fund II is investing in digital solutions of absolute need to advance, sustain, and defend critical infrastructure and modern society,” said Michael Steed, Founder and Managing Partner of Paladin Capital Group.
Paladin says it has already started investing capital from the Fund in companies such as Corellium, Nisos, and, Virtuoso.
Founded in 2001 shortly after the 9/11 attacks, Paladin has offices in Washington DC, New York, London, Luxembourg, and Silicon Valley. Since 2008, the firm has invested in more than 60 companies around the world.
“Paladin invests with a security-first mindset that builds digital resilience and facilitates innovation,” said Christopher Steed, Chief Investment Officer and Managing Director at Paladin Capital Group. “With each of our cyber funds, we continue to strengthen our track record and expand our ability to identify cyber technologies of the future. By playing an active role at the Board level, we are able to help founders and management teams introduce and scale much-needed security technologies in both the public and private sectors.”
Paladin’s announcement comes just weeks after YL Ventures, a venture capital firm focused on early-stage cybersecurity startups, closed a new $400 million fund and announced plans to ramp up investments in Israel’s security technology sector.
Venture capital financing for cybersecurity firms was strong throughout 2021, resulting in numerous new unicorns. Last year, and the first quarter of 2022, were also notable for the high number of cybersecurity mergers and acquisitions; and 2022 could be a new record year for M&A activity.
According to Progress Partners’ Market Report: Cybersecurity Q1 2022, cybersecurity financing activity topped $25.6 billion in 2021 (up from $11.1 billion in 2020). However, recent figures show a potential leveling off or slight decline for the full year 2022, currently standing at $5.4 billion for Q1 2022.
Related: Cybersecurity M&A Activity to Continue; Growth Funding More Conservative
Related: ForgePoint Capital Announces $450 Million Cybersecurity Investment Fund