Evolution Equity Partners Launches $400M Cybersecurity Fund

Evolution Technology Fund II Reaches $400 Million Final Closing

Evolution Equity Partners has successfully completed the final closing of its Evolution Technology Fund II LP, securing a total of $400 million in commitments.

The fund experienced strong demand, exceeding its target and attracting a diverse group of investors. These included both new and existing institutional investors, corporations, and family offices originating from the United States, Europe, the Middle East, and Asia.

Investment Focus and Strategy

According to Richard Seewald, managing partner at Evolution, the firm has already deployed capital into 12 companies from the new fund. He anticipates making a total of 20 to 25 investments.

Investments will typically range between $10 million and $50 million. The fund will concentrate on early- and growth-stage companies specializing in key areas such as cybersecurity, machine learning, big data, and SaaS platforms.

Portfolio Companies

Several investments have already been made through Evolution Technology Fund II. These include:

• Arqit-Quantum: A company focused on quantum encryption technologies.
• Quantexa: A firm specializing in the detection of fraudulent financial activity.
• Unbound Security: A provider of digital asset protection solutions.

Firm Background and Expertise

Founded in 2008 by technology entrepreneurs Richard Seewald and Dennis Smith, Evolution Equity Partners has completed 42 investments to date.

The firm currently manages assets exceeding $1 billion, with offices located in New York City, Palo Alto, London, and Zurich.

The Growing Importance of Cybersecurity

Seewald highlighted the significant opportunities within the cybersecurity market, predicting continued growth over the next decade. He attributes this to the increasing sophistication of cyber threats.

The rise in digitalization and remote work has dramatically expanded the potential attack surface, necessitating a reassessment of cybersecurity approaches.

A Broad Definition of Digital Security

“Our approach to cybersecurity is being reassessed to address a redefined world,” Seewald stated. He emphasized that a comprehensive security strategy must extend beyond traditional cybersecurity measures.

This includes incorporating security solutions related to blockchain technology, quantum computing, and identity protection. Evolution aims to invest in both core cybersecurity segments and adjacent categories, collectively defined as “Technology that Safeguards our Digital World.”