German cybersecurity company asvin intends to follow its ongoing seed-round extension with a EUR 10m to EUR 15m Series A round, CEO Mirko Ross told Mergermarket.
The company is looking to raise a EUR 2m extension to last February's seed round by the summer, at an EUR 18m pre-money valuation, Ross said at the RSA conference in San Francisco. The valuation results from due diligence processes conducted with investors, he added.
For this fundraise, asvin will target business angels and family offices in the cybersecurity space and its existing investors, he said. It will invest the proceeds in business development and sales and marketing, which include enlarging its sales team and expanding its channel partner network, he said.
The next step will be to raise a Series A round which, if the economic situation improves, is expected to take place at the end of 2024, he said. The seed round, together with a EUR 3.9m grant from the German government which has already been assigned to asvin, will give the company a runway of up to three years, he added.
Asvin will target venture capital firms in the cybersecurity sector for the Series A raise, he said.
The company has been receiving strong interest from investors and has been keeping them updated on its development, Ross said. It manages its financing efforts internally with the support of its advisory board, he added.
It will use the Series A funds to scale up in Europe and to enter the US market, he said. At the moment, asvin has one executive based in the US, he said.
Since being founded in 2018, asvin has raised approximately EUR 5m, he said. Its co-founders, CFO Sven Rahlfs, CTO Rohit Bohara and Ross, together hold its majority stake, he said.
Other investors include CV VC, Minol, Besto, Blockchain Founders Group and CoinIX, according to the company’s website.
For 2023, the 22-person company forecasts approximately EUR 1m in revenue, Ross said, adding that based on its current sales pipeline, revenue could grow to up to EUR 10m next year. The current focus is on growth, he said when asked about profitability.
Asvin provides tools and solutions for software supply-chain security. Its EagleEye product provides threat management based on context-based risk analysis in operational technology environments.
During Covid-19, the company focused on product development and is now working with several undisclosed customers, Ross said. Most of the customers are German companies, but it also works with some businesses in the US, he added. At present, it targets customers in the automotive sector, process industries, and in smart infrastructure and telecommunications, according to its website.
