The provider of mobile app security solutions has succeeded in closing its Pre-Series-A funding round with two new investors. This brings the number of Build38’s institutional backers to three. In addition to G+D Ventures, which originally joined as a seed investor, Caixa Capital Risc and eCAPITAL ENTREPRENEURIAL PARTNERS are now also part of the team and co-led the round. With the capital received, the expansion into further markets is to be driven forward and the multi-layer security framework is to be further developed with AI functions.
In the first two years of its existence, Build38 has succeeded in concluding several long-term contracts worth several million euros from key industries like automotive, transit, e-identity, digital healthcare and financial services. Apps include digital car keys, mobile ticketing, SoftPOS and government-approved mobile IDs, which Build38 protects. To address even more markets and application scenarios in the future, the company has embarked on a search for funding partners.
eCAPITAL is a venture capital firm that provides early to growth stage funding to technology companies in the fields of software & information technology, cybersecurity, industry 4.0, new materials and cleantech. eCAPITAL joining as a shareholder validates Build38’s solution offering, value proposition and market. Caixa Capital Risc, being one of the leading VCs in Spain backs early-stage tech B2B SaaS companies, focus on deep tech theme, and predominantly invests in Spanish and Portuguese technology companies. Build38 has an office in the city of Barcelona where a significant part of their development and operations are hosted and Caixa Capital Risc will work closely with the team to help growing and bringing business in Southern European markets.
Investment in Product and Market Growth
The financial injection from the two new investors will be used in Europe and Asia to expand the capabilities of the Security Solution and Mobile Fraud Protection with additional AI functions. In this way, it should be possible in the future not only to protect apps from potential attacks and threats, but also to predict when they might occur. Furthermore, an expansion of the business development team in Europe and Asia is planned. In addition, new fields and channels will be developed in the currently existing regions to expand the partner network.
We are happy to have two such experienced investors newly on our side, who trust in our solution and our chosen course. With their support, we are able to further advance our security framework, tackle new markets, and expand our team and network. Although 2020 has been full of challenges, we have taken the opportunity to explore our market and growth strategies, and have started to identify and build the appropriate sales channels. Following on from this, we have already succeeded in establishing long-term customer relationships and generating business. Giesecke+Devrient – our existing investor and important customer and reseller in Europe and Asia – has been a major support in this. This development gives us a positive start to 2021 with a clear focus on the growth of the Software-as-a-Service (SaaS) business.
Dr. Christian Schläger, CEO, Build38
Growth market “Mobile Security”
In the previous year, it was possible to observe how strongly companies expanded and increasingly used mobile channels. More and more consumers are interacting digitally with service providers – mainly via mobile apps. This general trend was accelerated by the pandemic situation. At the same time, however, attacks on Apps and mobile commerce increased at an above-average rate. This trend brings with it numerous challenges in terms of security and fraud. Build38 can help service providers and their solution providers bring innovative, fraud-proof services that comply with security and privacy regulations to market in the shortest possible time and with a optimal return on investment. With its SaaS offering, Build38 ensures that customers and partners always receive continuous customer service and benefit from enhancements and updates throughout the product lifecycle.
Cybersecurity is the present and the future of mobile application development. We are incredibly excited to back the entire Build38 team as they take on this hard-to-solve problem. Build38 develops cybersecurity services that bring the magic of complete mobile application protection solution with full visibility to security teams. Moreover, as they are constantly under immense pressure of cyberattacks becoming more sophisti-cated and volume grows exponentially.
Roma Jelinskaite, Principal, Caixa Capital Risc
Mobile-first is a wave that comes with tremendous challenges securing the mobile itself, the app, digital valuables and personal data in the app as well as the backend processing infrastructure. There is no easier way than integrating the Build38 solution into mobile developers‘ and providers‘ systems to integrate a powerful cyber security architecture with just a few keystrokes. We very much look forward to becoming part of the Build38 success story and to work with a highly experienced team building the next mobile security category leader.
Dirk Seewald, Partner, eCAPITAL AG
Build38 is a global provider of mobile application protection solutions. The Trusted Application Kit (T.A.K.) provides next-generation protection for mobile apps, keeping them safe from known and unknown attacks at all times and enabling new digital business models.
Build38 protects applications in various industries, including the automotive and financial sectors, FinTechs, public transport and healthcare. The GmbH is headquartered in Munich and has global offices in Barcelona and Singapore. To learn more, visit www.build38.com.
About Caixa Capital Risc
Caixa Capital Risc is a Spanish venture capitalist firm located in Barcelona with more than 10-year-old history and currently manages different investment vehicles with over EUR 200 million under management. The firm invests in three areas: Information Technology, Biotechnology and Industry. Caixa Capital Risc is VC optimizing for a long run and through its Information Technology funds supports early stage deep tech and B2B SaaS Spanish and Portuguese based technology startups disrupting industries with leading-edge technology and lead by founders that have a global mindset. The most recent example of exit and success story of Caixa Capital Risc is portfolio is Playgiga a cloud gaming company acquired by Facebook.
eCAPITAL is a venture capital firm that provides early to growth stage funding to technology companies in the fields of software & information technology, cybersecurity, industry 4.0, new materials and cleantech. Founded in 1999, eCAPITAL has a history of supporting entrepreneurs determined to build companies with lasting significance. Partnering with eCAPITAL means joining an international network of business leaders, entrepreneurs, technologists and potential partners. eCAPITAL is located in Germany, currently manages funds with over EUR 280 million under management and was lead investor of some very successful German exits like sonnen or Novaled.
About G+D Ventures
G+D Ventures is the Corporate Venture Capital arm of the Giesecke+Devrient Group and is headquartered in Munich, Germany. G+D Ventures is a theme-driven investor, financing early stage European startups, which safeguard and enhance trust in our society.
The team leverages its VC experience investing since 2001 to support portfolio companies with a core uniqueness: leveraging the worldwide network of G+D, Veridos and Secunet Security Networks.