Swiss-Hungarian Tresorit Secures €11.5 Million Series B Round

Tresorit Kft, in cloud encryption and collaboration, which provides end-to-end encrypted file sync and sharing for businesses, announced that it has closed an €11.5 million Series B financing from a consortium led by 3TS Capital Partners, an European growth capital investor.

3TS has a long track record of investing in global software businesses originating from Europe, including Piano Inc., SALESmanago, 123FormBuilder, LogMeIn (NASDAQ: LOGM), SolveDirect (acquired by Cisco) and Avangate (acquired by Francisco Partners).

PortfoLion Regional Private Equity Fund (joint investment fund of OTP Group and EXIM Bank), a Central European venture capital and private equity fund management firm with investments such as Codecool and Starschema contributed substantially to the funding.

Several prominent existing investors, such as Andreas Kemi, early investor in LogMeIn, Inc. and co-founder of Scala Business Solutions NV and Márton Anka, founder of LogMeIn, also participated in the round.

Part of the funding was used for acquisition of existing shares.

Tresorit, in the expanding enterprise file sync & sharing market, provides zero-knowledge encryption technology and encryption key management and guarantees on-premise equivalent security for businesses while offering consumer-grade simplicity.

It serves more than 17.000 customers and has grown its recurring revenue base on average by 3x every year in the last three years.

The company now aims to accelerate its growth by building on the rising demand for secure cloud solutions that protect against data breaches, and will use the new round to broaden its management team, to scale up marketing and sales teams and to work together with new channel partners to expand its global reach.

“We are at an inflection point with our business as awareness regarding data protection and cybersecurity threats is getting stronger and demand is set to grow exponentially for our service in and outside of Europe. There is a large market potential in channeling traditional IT expenditure into the cloud. A recent Deloitte survey indicates that traditional IT expenditure still accounts for two-thirds of all IT spending, while only one-third goes towards IT-as-a-service. Many enterprises are holding back from migrating to the cloud due to security and privacy concerns. With security guaranteed by end-to-end encryption, more businesses can and will choose Tresorit’s cloud solution,” said Istvan Lam, founder and CEO, Tresorit. “We are confident that this funding round and scaling insights from our new capital partners will help us build a global brand and cement our position as the leading cloud encryption company. As part of our mission to enable all organizations to work safely in the cloud, we have recently launched the beta version of Tresorit Send, a standalone file sharing product which offers a secure and encrypted alternative to unreliable file transfer sites and email attachments.”

3TS Partner Jozsef Köver, who led the investment and joins the company’s board of directors, added: “Tresorit’s service is critically important for customers in light of the growing number of data breaches reported on a daily basis. The management team has a clear vision on how the company will further expand its reach, especially among enterprise and SMB clients. The company has already established itself as a leader in its market and is experiencing strong, consistent growth. We look forward to support the management on their journey to further expansion and global scale.”

Read also:
Hungarian Tresorit Received $1.7 Million Investment
Start-up in software for encrypted cloud-based file sharing
2013.05.20 | Press Release