City titan Lord Michael Spencer is said to be leading a £16m investment in cybersecurity firm Glasswall as he looks to cash in on rising demand for specialist security software.
The billionaire Icap founder has agreed to anchor the fundraising round with a £11m cash injection through his private investment vehicle IPGL, Sky News reported.
The remainder of the round is understood to be being lined up from a consortium of other investors.
Glasswall first secured IPGL as an investor two years ago, when Lord Spencer led a £15m funding round.
Glasswall specialises in a cybersecurity practice known as content disarm and reconstruction — where files are stripped of any potentially malicious code.
The process differs from traditional cybersecurity practices in that it does not try to detect malware, but rather regenerates all documents and files to an accepted safe standard.
Proponents of the technology say this makes it superior to other antivirus products.
Glassware’s clients include GCHQ and the CIA, as well as law firms Freshfields Bruckhaus Deringer and Slaughter & May.
According to the report, the company’s latest fundraising is taking place at a valuation of roughly £15m prior to the fresh injection of capital.
Glassware recently tapped former Barclays executive Danny Lopez as chief executive as it looks to kickstart growth.
The company’s board includes Sir Peter Westmacott, the former British ambassador to the US, as well as Sir Nigel Knowles, chairman of law firm DWF.