Our Segasec Success Story
In 2018, the innogy Innovation Hub became the first investor in Israel-headquartered cybersecurity start-up, Segasec. Less than two years later Mimecast, a leading email and data security company, has acquired Segasec as they seek to build their protection against cyberattacks and digital exploitation. This is a proud moment for the innogy Innovation Hub and our Cyber Ventures team as we were an active and engaged investor. We’d like to take the opportunity to congratulate Segasec’s founder and CEO Elad Schulman and his team and share the story of our journey with them from the point of discovery to this successful exit.
When we first met Segasec’s co-founder and CEO Elad Schulman it quickly became clear that our missions were aligned – specifically, our goal to extend the scope of cybersecurity beyond the traditional enterprise perimeter, for a digitised, decentralised future. Segasec applies an active defense technology that detects and predicts potential phishing in order to intervene before customers are affected. Working proactively and using machine learning to search the darkest corners of the internet, Segasec has yet to uncover a false positive.
Elad is a seasoned hi-tech professional with a track record in large corporates and start-ups, but what impressed us most was his conviction and determination. It didn’t take long before Elad’s enthusiasm in the Segasec solution rubbed off on us. Undeterred by the very early stage of the business, we seized the opportunity to become their first and only investor in their first fundraising round in July 2018, with a $2 million investment. Almost a year later, we again participated in their second investment round, this time led by Mimecast.
And that was by no means the extent of our involvement. We have provided opportunities for Elad to pitch the Segasec solution to audiences of potential customers, investors and business partners. For example, he pitched to an audience of 400 business leaders, entrepreneurs, investors and start-ups at our Unconference in Berlin in October 2018. He also pitched on stage and had a series of one-to-one meetings with potential investors at our Portfolio Day 2019 in Essen, Germany. Segasec was also a participant in our inaugural Growth Camp, a UK market entry initiative for selected innogy Innovation Hub start-ups. This involved legal and storytelling workshops, introductions to corporates and exposure to relevant investors in the UK, providing vital support for Segasec’s expansion into the market.
Providing scaling and partnership opportunities and a platform for collaboration is core to our approach and something we extend to all our portfolio companies. Elad and the Segasec team were particularly eager to benefit from this, attending almost all of our growth activities in Germany, London and Tel Aviv – and by taking advantage of our social media and marketing activity to help boost their visibility on a virtual stage. Besides the events, we were constantly busy creating value for Segasec, through the right connections, social media promotion e.g. in our #FutureOfEnergy video campaign, and providing ongoing guidance.
“innogy Innovation Hub has been our close partner since we got out of bootstrap mode, beyond just being an investor. Not only has innogy SE become a customer of Segasec, but they have also helped us generate more business, via their strong connections in Germany and the UK, and their support in placing us on stage in front of amazing companies. This is something we simply couldn’t have done on our own. Above all, the close relationship we have had with the innogy team across Israel, Germany and the UK has made a huge contribution to our growth. A special thanks to our trusted board member Boaz Kantor, who helped me and the company a lot, in growing the company and in steering it to a successful exit.” – Elad Schulman, CEO & co-founder, Segasec
At innogy Innovation Hub, we don’t just provide capital, we seek to add real value by promoting collaboration and providing engagement opportunities across our network to bring people together, so they can spark new ideas. As with all of our start-ups, we took a tailored, thought-out approach to the mentoring and acceleration of Segasec because we care about their success. We were determined to help it reach a broader market and protect more businesses from the billions of threats attempting to steal from their customers.
When we first met Segasec, around two years ago, they were a team of six that had just secured their initial sales. In that time, they have grown to 30 employees with dozens of customers across 15 countries, and with a seven-digit euro amount in revenues. Their success to date has been very impressive and we are sure there are great things still to come from Elad and his team. We are very proud to have played an important part in Segasec’s story so far and look forward to following their development as part of Mimecast.