BitNinja strengthens its position with new investment
BitNinja closed a USD 2.5 million funding round, the transaction is led by Lead Ventures, the specialist of scale-up financing in CEE. The U.S.-registered, Debrecen-based BitNinja aims to become a major player in the global cyber security market with its server protection solutions.
As corporate digitalization advances, global cyber security market continues to grow. With the transformation of information systems, methods of hackers specializing in attacking them also change. Developers of various cyber security solutions must react rapidly to these threats. Especially SMEs are vulnerable with regard to IT security, as they usually lack proper protection and are unable to handle the consequences of a cyber attack.
Recognizing this need, BitNinja is developing cyber protection solutions to web hosting providers. Its system detects, filters and eliminates attacks, while collecting information about them as well. Once the information is gathered, it automatically improves itself further, meaning that with an increase of users and more diverted attacks, it provides more effective protection. The method has proven to be so successful in the world market, that BitNinja enjoys a clientele of major global web hosting providers as Dreamscape, Fastcomet or Hostinger. Most of its dynamically growing turnover comes from the United States.
This is an exciting Hungarian entrepreneurial success story, which we were immediately attracted to. The team, who started out as web hosting providers, realized that their servers and indirectly their customers, were under more and more attacks. They looked for their own solution to the problem. Their idea proved to be functional in the vigorously growing cyber security world market. As a result, with several other investors, we have made the decision to support BitNinja’s development with an investment totaling USD 2.5 million. The majority of the capital, USD 1.5 million, is provided by us. Our plans span for a time period of 3-5 years. Our common goal is to make BitNinja an attractive target for overseas investors by the end of this period – stated Balázs Haszonics, CFO of Lead Ventures.
BitNinja, founded in 2015, is registered in the USA, but the headquarter is based in Debrecen, Hungary. We decided to set up an American company because in this field, the major service providers are located in North America, besides Europe. Our main market is the United States. Previously, we raised USD 500,000 from various investors, which allowed us to nearly double our ARR (annual recurring revenue) in the last 18 months. With the current second round of financing we wish to strengthen our product sales and significantly increase our current workforce of 37 employees. In addition, we want to introduce our new product to the market, a site protection solution, which has already generated great market interest - – stated Zsolt Egri, CEO of BitNinja.
The American-Hungarian iEurope, Oxo Technologies Holding also joined the round as new investors, along with existing investors, namely Octogon Ventures and the founders of Balabit – Zoltán Györkő, Balázs Scheidler and Endre Wagner.