Forgepoint Announces New European Hub to Focus on Cyber, AI (Bloomberg)
Andrew Martin
October 21, 2024
- News
- Europe, Latin America, and Israel to be areas of investment
- New management company stems from alliance with Santander
Venture capital firm Forgepoint Capital is planning an international expansion and new fundraising that will focus on investment opportunities in Europe, Latin America and Israel.
The firm, which has more than $1 billion in assets under management, is targeting startups building cybersecurity, artificial intelligence and infrastructure software. It plans to raise a new fund for the expansion but declined to disclose the fundraising target.
“We’re seeking to become a global franchise,” said Alberto Yépez, Forgepoint’s co-founder and managing director.
A dedicated management company, Forgepoint Capital International, and a European hub based in London were established as part of the effort. The creation of the new management company stems from a strategic alliance between Forgepoint and Banco Santander SA that was announced in 2022, to invest in emerging cybersecurity companies mainly in Europe and Latin America. Santander was expected to invest as much as $325 million.
Forgepoint, which is based in San Mateo, California, already has a track record of investing in cybersecurity companies in Europe. “We have gotten feedback from European entrepreneurs who would rather work with local VC players who can help them mature and grow, before being subjected to the pressure to move their headquarters to the US or other locations,” Yépez said. “They want to have partners who understand the needs and nuances of building where they are, then scaling globally in the way that makes the most sense for their businesses.”
Damien Henault, managing director of the international expansion, said Forgepoint’s initiative seeks to fill a vacancy in the market for cybersecurity and AI funding at scale.
The firm’s portfolio companies include Bishop Fox, Huntress and RAD Security, according to its website.
“Cybersecurity innovation across these regions is booming in response to the accelerated pace of digital transformation, persistent ransomware incidents and stricter regulatory requirements,” the company said, in a statement.