Netacea raises further £4m to step up battle against bots
Manchester-based cyber security business Netacea has raised a further £4m from Mercia Asset Management, which is investing from its own funds and the first Northern Powerhouse Investment Fund (NPIF).
Their speciality is helping companies prevent online fraud by tackling bot attacks.
Founded in 2018 by Jeremy Gidlow and Andy Still, while part of IT consultants Intechnica, the business spun out in 2022.
When Intechnica was sold to US-based Crosslake Technologies last year, Mercia and NPIF retained a stake in Netacea.
Netacea now employs around 60 staff and has a client base that includes some of the world’s largest online retailers and major brands. It increased revenue by 29% in the financial year to March 2024 and is on course for continued growth in the current year.
The investment will be made across two tranches.
Mercia will contribute £3.1million to an investment round, split between £2m now, and a second tranche of £1.1m during Mercia’s next financial year.
Mercia will hold a fully diluted 33.6% direct investment in Netacea, with its managed funds holding a further 26.9%.
Mick Bradley
Mick Bradley, CEO of Netacea, says: “The cost of online fraud is rising at an alarming rate and with the growth of e-commerce and adoption of offensive AI, is estimated to reach $7.95 trillion by 2027. Solving this problem is not only about stopping attacks, but also understanding the intent, planning and execution. Netacea’s industry-leading threat Intelligence, along with our AI-driven intent-based analytics tools, enables us to identify and stop significantly more bot attacks than traditional methods. This latest funding will enable us to accelerate product development and further extend our AI.”
Angela Warner from Mercia commented: “Netacea has become a thought leader in its field and Mercia is pleased to have been able to play a key role in its success, and that of Intechnica from which it arose. This investment will enable it to continue its growth. It also reinforces Mercia’s position as a leading cyber security investor.
“Our portfolio companies are addressing critical challenges across the security spectrum – from bot detection and threat intelligence to digital forensics and supply chain risk management. The sustained interest we are seeing in this sector validates our early conviction in these technologies, and we continue to actively evaluate opportunities in this space.”
