Austin-based app security company Invicti Security Corp. has sold a majority stake to Boston-based growth equity firm Summit Partners for $625 million.
The company was born in 2018 out of a merger of Netsparker and Acunetix, which had established a presence here in 2017. Now it's poised to grow with the new investment, and its prior investor, Turn/River Capital, will still be a significant shareholder.
Invicti currently has 71 Austin employees, including leaders of several departments, including engineering, marketing and customer success.
CEO Ferruh Mavituna is based in London, while Chief Operating Officer Mark Ralls and Chief Revenue Officer Kevin Gallagher are based in Austin. Its office is in the St. Elmo area, and it has no plans to move following the funding, a company spokeswoman said.
Invicti plans to expand its global headcount 35% to 40% by the end of 2022. That will involve Austin hires, although the company's blended office and remote approach means it's looking to hire anywhere. It also has offices in Malta and Istanbul.
As cybersecurity has gained more attention due to the rise in ransomware and attacks from abroad, Invicti's appeal has grown alongside that of many other security startups. Cybersecurity startups had raised $9.9 billion in venture capital in roughly the first half of 2021, nearly matching the total raised in 2020, according to Pitchbook data. For example, earlier this year Brinqa Inc. raised $110 million after being bootstrapped for years.
Earlier this year, the company landed at No. 16 on the Inc. 5000 Regionals: Texas list, posting 690% growth over two years.
While it didn't disclose revenue figures, it said it expects to see annual recurring revenue climb 61% this year compared with 2020. Its customers include Visa, Ford and NASA.
The company also plans to invest in product development with the new influx of cash.
Invicti's product lines, which maintain the names Acunetix and Netsparker, help businesses keep information in web applications secure by scanning apps for code that may be vulnerable to cyber attacks.
"Software development cycles have shortened dramatically over the last decade, opening new vulnerabilities every time a web application is released or updated," Summit Partners Managing Director and COO Scott Collins said in a statement. "Invicti is working to meet this challenge head on with elegant and seamless solutions designed to bring scale, automation, speed and accuracy to help organizations secure their web attack surface."
Collins will join Inviciti's board as part of the deal, which is expected to close in the fourth quarter this year.
