Grok Ventures, the investment vehicle of Atlassian co-founder, Mike Cannon-Brookes, has joined Rampersand in a $3.5 million funding round for Australian cyber security start-up, Cog Systems.
Based in Sydney, Cog Systems has developed a modular security solution portfolio designed for the connected devices that make up the internet of things (IoT). In its own words, the company makes “secure solutions for the connected world”.
Cog calls its flagship D4 Secure offering a “mobile, gateway, and IoT product and solution”.
In September, the company revealed it had signed a distribution agreement with immixGroup, which added Cog Systems' D4 Secure software, products and services to its United States-based nationwide local, state and federal government purchasing vehicles.
Now, Australian venture capital firm, Rampersand, along with Cannon-Brookes’ Grok Ventures, are taking a punt on the local start-up as it eyes up the burgeoning IoT market.
“I’m excited to be able to share today we’ve invested in Cog Systems,” Rampersand co-founder and managing partner, Jim Cassidy, said in a blog post on Medium. “There were few things more exhilarating in this job than realising you’ve backed a company that is going to have a big impact: Cog Systems secures IoT."
According to Cassidy, Cog's DS4 Secure Systems software solves a big and growing problem, given that conservative estimates already put the average number of internet-connected devices per US household at 40.
“The team is doing well and it’s still very early in the IoT era. IoT devices are on track to hit 20 billion devices by 2020 according to recent research, and will be trillions in the future,” he said.
Among Cog Systems’ big drawcards, according to Cassidy, were its existing deals in the public sector and its experience selling to government departments and agencies, no doubt referring to its distribution agreement with immixGroup in the US.
“Cog Systems' CEO, Daniel Potts, and the team have taken a modular approach to their DS4 Secure Systems software to enable executives, government and defence workers to use apps on their phone securely,” Cassidy said.
“They sell a customised HTC phone directly, as well as a software service and work with device makers globally to build better security, resilience, and richness into their products.
“Customers include business executives who travel frequently, the US Department of Health, the US Army and the Department of Defence, as well as several similar Australian institutions,” he said.