As a team, we have backgrounds in the telecom and data centre industries, having worked in a variety of roles across technology transformation, business development and transformation at a global level. Having supported and worked in tech business for several decades between us, we found ourselves with the opportunity to create a technology investment fund back in 2014.

Long story short, we pursued two very successful theses: a Private Equity thesis to create one of the largest pure-players in the Managed Security Service Provider (MSSP) European market, that finally got an acquisition offer from the French conglomerate Thales; a Venture Capital thesis, to invest in emerging start-ups in cybersecurity, that led us to invest in 20 start-ups out of which three reached unicorn status.

On the back of this success, we created our current VC firm, 33N. From the outset we had the objective to leverage our vast network across Europe and solid financial track-record to support fast-growing teams with our expertise and help them build the best in cybersecurity and infrastructure software.

Which industries are you working in?

We predominantly invest in Series A and B companies developing emerging technologies in cybersecurity and infrastructure software, the latter including AI, data & DevOps. As a specialist fund we leverage our network in enterprises, system integrators and tech scale-ups to assess emerging market segments, start-ups in those segments and their products and founding teams.

Our specialisation and hands-on experience in cybersecurity and infrastructure software benefit founders by helping them understand market segments, competitive dynamics, customer pain points, go-to-market strategies, and M&A trends. Furthermore, our wide network in Europe, extending to North America and Israel, provides unique opportunities for founders in direct sales, channel partnerships, and strategic guidance.

What do you look for in a founder? 

There is no single right answer as great founders have varying strengths. At 33N, given our DNA of being a specialist fund in cybersecurity and infrastructure software, we look for a combination of factors. We tend to resonate with founders who demonstrate a profound expertise of their respective domains globally. This depth of knowledge ensures that the solutions proposed are both innovative but also fit a global market need, aligning with the firm’s mission to enhance security and infrastructure globally.

We also value collaborative founders who can leverage our network of experts, commercial partners, and our own experience as investors to drive the most benefit for their businesses. We are deeply committed to working alongside founders in their success, and that alignment of interest, attitude, and faith is what brings us to work every day. Naturally we also value well recognised characteristics of an enduring founder, such as founding experience, ambition, resilience, determination, business acumen, people skills, among many others. Our track-record of backing successful founding teams has taught us many lessons that we put into practice every day when engaging with founders.

Can you talk about your current portfolio?

To date, 33N has made several strategic investments in cybersecurity and infrastructure software technology companies, including Panorays, StrikeReady, Exein and DataGalaxy. 

Panorays provides a third-party risk management platform, simultaneously cutting down process timelines and providing visibility on all vendors onboarded. It was our first investment at 33N. We’ve known the founders for several years, as we tried to back them in the past but weren’t able to close a collaboration. When the opportunity arose, we were confident about the need to automate Third Party Risk Management (TPRM) for enterprises, their differentiated approach and the founders’ vision and ambition.

StrikeReady provides an AI-powered security command centre, purpose-built to centralise security data across a company’s entire tech stack and accelerate threat response. Tackling the foundational problem of SOC automation, the company is founded by seasoned tech executives out of FireEye, who leveraged their experience to drive an opinionated approach of how to leverage AI for SOC automation.

Exein develops technology for embedded IoT security, embedding AI security capabilities directly into device software by integrating with OEMs and semiconductor manufacturers. Considering IoT/OT infrastructure presents a growing threat to enterprises ​and regulation further driving adoption of these technologies, Exein stands-out for its distinctive tech proposition and edge AI capabilities.

Finally, DataGalaxy provides a must-have data governance platform for organisations embracing AI or unlocking data’s full value for smarter business decisions. As AI use cases hit higher interest on the back of new Generative AI capabilities, enterprise data quality and governance emerged as bottlenecks for board AI adoption. DataGalaxy’s offer and positioning centered on both technical and business users is distinctive in enabling the use of business data for AI use cases.

What does the future look like? New trends/technologies, changes in the global/local economic landscape?

We are very excited about the future and the opportunity for 33N. Most of the trends are not new for founders and investors in the field, however the sheer magnitude has been reaching new heights.

Cybersecurity continues to be top of mind driven by the increase in number of attacks, regulatory initiatives and defence spending driven by a complex geopolitical context.

In particular in Europe, the continent is experiencing a cybersecurity boom. Total spending in cybersecurity is expected to grow at 13.4% year-on-year, faster than North America or any other region globally, expecting to settle at around one-third of total global cyber security spending.

Even so, venture capital investment in cybersecurity in Europe has historically represented around 10% of global funding. European start-ups face challenges when scaling across a heterogeneous market, with a lack of experienced go-to-market partners and these startups are often founded by first-time founders. This is where 33N can be of most help and support growth acceleration for founding teams.

What makes 33N Ventures different?

The cybersecurity market in Europe is growing very fast and we are seeing more startups in this sector pop up across the continent. However, unlike their peers in the US and Israel, these companies are not getting the specialised support they need to compete at the same level. 

There are obviously specialised funds in Europe, however they are mostly focused on earlier stages and with a limited scope to support companies in their own country or region in Europe. At 33N we look to support pan-European expansion for our invested companies. The European market is seeing the fastest growing spending globally and we are ready to unlock it.

What one piece of advice would you give founders?

Search for investors and partners with expertise in your industry and provide a valuable support network. Given the unique characteristics of the cybersecurity and infra software markets, sharing experiences and insights with founders, tech execs and enterprise leads in this industry provides valuable insights and opportunities. This helps founders stay focused on their value proposition, iterate quickly and build a vastly superior product to existing market offerings, which will ultimately ensure success.

Carlos Alberto Silva and Carlos Moreira da Silva are Managing Partners at 33N Ventures.