FILE PHOTO: Figurines with computers and smartphones are seen in front of the words "Cyber Security" in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Italian tech firm Exein said on Wednesday a pick up in European defence spending was supporting its domestic growth, as it closed a funding round aimed at global expansion.
The startup, which provides embedded cybersecurity on small devices including chips, is planning to expand its range of products as countries and businesses move away from cloud-based systems because of data sovereignty concerns and rising costs, its Chief Executive Gianni Cuozzo said.
WHY IT'S IMPORTANT
Italy has been trying for years to foster a tech startup sector.
As European countries increase their defence spending in a push to meet NATO targets and protect themselves against Russian expansionism, demand for domestic cybersecurity and infrastructure protection systems is increasing.
BY THE NUMBERS
Exein said on Wednesday its Series C funding round raised 70 million euros ($81 million) for expansion across the United States, Japan, Taiwan, and South Korea, and to strengthen its European presence.
Its plans include acquisitions in Europe and the U.S. to target new users, followed by another funding round for a "bigger acquisition", and a public listing between 2029 and 2030, Cuozzo said.
The group, whose clients include MediaTek, Daikin, Seco and Kontron, said in April it was valued at around 500 million euros.
It is targeting 20 million euros in revenues this year and aiming for triple-digit revenue growth in each of the next three years, helped by acquisitions, Cuozzo said.
KEY QUOTE
Attackers "are no longer breaching through the front door; the microwave on a military ship, or the smart fish tank in a hospital waiting room - any one of these could be exploited to compromise the entire network," said Elena Moneta, Principal at London-based VC firm Balderton, which led the funding round.
($1 = 0.8604 euros)
(Reporting by Alessandro Parodi. Editing by Mark Potter)
