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  • Evolution Equity Partners launches a $1.1 billion cybersecurity fund.
  • Fund targets $20-150 million investments in AI-driven cybersecurity.
  • Evolution aims to support up to 30 cybersecurity companies.

Cybersecurity is now facing an issue with its funding, having seen a 40% drop in investment this year compared to last year. The chief information security offers have confirmed that 2024 budgets for cybersecurity will be higher, according to NightDragon, which specializes in cybersecurity VC.

As Pinpoint shows on the Q1 2024 status of investment in cybersecurity, the overall amount of investment went down compared to Q1 2023, but the number of deals rose.

Given the current environment, Evolution Equity Partners, a growth capital investment firm based in NYC with a $1.1 billion cybersecurity and AI fund, launched on Tuesday. This is the third Fair Fund run by the organization.

The Evolution Technology Fund III, which was undersubscribed, was supported by different entities like endowments, new and existing Sovereign investors, insurance companies, foundations, funds of funds, family offices, and angels.

It aims to invest between $20 million and $150 million in cybersecurity companies, whose inputs are machine learning and AI to create advanced platforms.

As the managing partner of Evolution, Richard Seewald stated that the fund had already successfully invested in 15 cybersecurity companies, and their long-term goal is to support up to 30 more companies in the current fund.

Evolution Technology III Fund will target allocating around 75% of its total $1.1 billion to early-stage startup companies, 15% to later-stage startups, and 10% to earlier-stage VC tranches.

Evolution, an AVG spin-out company founded by Seewald and his previous partner Dennis Smith, has offices in Palo Alto, London, Zurich, and New York. JRL Smith and Karel Obluk, ex-AVG’s executives, have joined Seewald and Smith to form Evolution after the AVG’s IPO.

Edited by Shruti Thapa