Netacea, the cybersecurity specialist that helps companies prevent online fraud by protecting them against bot attacks, has raised a further £4m from Mercia Asset Management, which is investing from its own funds and the first Northern Powerhouse Investment Fund (NPIF I).
The latest investment will help Manchester-based Netacea to further extend its AI roadmap, expand its product range and continue its growth.
Bots are responsible for over half of online fraud cases and advances in ‘offensive AI’ are making them more aggressive and harder to stop. Netacea’s fifth-generation AI-driven platform can not only detect and prevent live attacks that may be missed by other cybersecurity products but also give forewarning of future attacks.
The company has developed an open-source framework that maps every stage of an attack, from advance planning as criminals seek ways to breach a company’s defences to selling the products or information afterwards. The BLADE framework, as it is known, is fast becoming the standard model for business security teams and Netacea is developing products and services to cover all stages of the attack process.
Netacea was established in 2022 as a spin-out from the Intechnica Holdings, an IT consulting business backed by Mercia and the first Northern Powerhouse Investment Fund. Following Intechnica’s sale to US-based Crosslake Technologies last year, Mercia and NPIF retained a stake in Netacea.
The company now employs around 60 staff and has a client base that includes some of the world’s largest online retailers and major brands. It increased revenue by 29% in the financial year to March 2024 and is on course for continued growth in the current year.
Mick Bradley, CEO of Netacea, says: “The cost of online fraud is rising at an alarming rate and with the growth of e-commerce and adoption of offensive AI, is estimated to reach $7.95 trillion by 2027. Solving this problem is not only about stopping attacks, but also understanding the intent, planning and execution. Netacea’s industry-leading threat Intelligence, along with our AI-driven intent-based analytics tools, enables us to identify and stop significantly more bot attacks than traditional methods. This latest funding will enable us to accelerate product development and further extend our AI.”
Angela Warner from Mercia commented: “Netacea has become a thought leader in its field and Mercia is pleased to have been able to play a key role in its success, and that of Intechnica from which it arose. This investment will enable it to continue its growth. It also reinforces Mercia’s position as a leading cyber security investor.
“Our portfolio companies are addressing critical challenges across the security spectrum – from bot detection and threat intelligence to digital forensics and supply chain risk management. The sustained interest we are seeing in this sector validates our early conviction in these technologies, and we continue to actively evaluate opportunities in this space.”
NPIF– Mercia Equity Finance provided equity investments in the NPIF region with a focus on Yorkshire & the Humber and Tees Valley. The British Business Bank has since launched the Northern Powerhouse Investment Fund II in March 2024.
The new £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.