CEO of Waterloo company claims growth over past year “has been nothing short of incredible.”
Kitchener-Waterloo, Ont.-based cybersecurity startup Cavelo has closed a $5-million seed extension round led by Inovia Capital as it continues to focus on sales, marketing, and developing its product.
The new funding may come with a sense of déjà vu, as Cavelo also raised a $5-million CAD seed round led by Inovia just under two years ago to fuel expansion in the United States. Since then, Cavelo’s growth over the past year “has been nothing short of incredible,” CEO James Mignacca said in a statement.
“This funding fuels our continued momentum and strengthens our commitment to our partners and their success,” Mignacca said.
BetaKit has reached out to Cavelo for more details on its recent growth, and will share them if available. The company attributed the upward trajectory to a new “channel-first model.” Cavelo identified channel partners like managed service providers (MSPs) and managed security service providers (MSSPs) as a means of serving its customers prior to its 2023 seed round. MSPs and MSSPs help companies that have cybersecurity needs, but not enough resources and talent in-house to meet them.
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Founded in 2020, Cavelo has built a platform that scans, identifies, classifies, and reports on data that companies might want to protect in the event of a breach, such as credit card and passport information. By helping businesses locate and determine who has access to sensitive data, it aims to simplify compliance reporting, vulnerability management, and risk mitigation.
The company raised a $1.3-million pre-seed round in early 2021 led by MaRS IAF. Following the 2023 seed round, Mignacca told BetaKit that Cavelo aimed to use the capital to set itself up for a larger Series A round within two years.
Cavelo caters to businesses and organizations of all sizes and counts undisclosed financial services companies, law firms like Chaitons and WeirFoulds, and municipalities like the City of Guelph among its customers. Cavelo’s channel partners span IT services vendors, MSPs, MSSPs, and compliance consultants.
“Since our initial investment in Cavelo in 2023, we’ve been consistently impressed by the team’s ability to execute and deliver value-added products tailored to the needs of MSPs and MSSPs,” Inovia principal Taha Mubashir said in a statement.
Feature image courtesy Cavelo.