Deal Underlines C5’s Skill in Identifying Attractive Growth Businesses With Strong Market Positions
Shape Security, a portfolio company of C5 Capital, the specialist venture capital firm focused on cyber security, cloud infrastructure and applied data analytics, has agreed a $1 billion sale to F5 Networks, a Nasdaq-listed technology company.
C5 led a high profile funding round, earlier this year, in California-based Shape, whose fraud prevention technology will powerfully combine with F5’s distribution capability.
That funding round, where C5 led several renowned Silicon Valley and corporate investors, demonstrated C5’s expertise in identifying valuable market leading companies with strong growth prospects.
Shape uses AI-powered automation and fraud detection capabilities to distinguish between human and automated traffic and defend some of the world’s largest enterprises against cyber-security initiated fraud against their online applications. As the world leader in online fraud prevention, the company protects more accounts from fraud than all other providers in the space combined and its technology detects and blocks up to two billion fraudulent or unwanted transactions every day.
The combination of Shape with F5’s existing skill in protecting applications across multi-cloud environments, will enable F5 to transform application security and double its addressable market in security.
Shape illustrates C5’s ability to recognise exceptional businesses, access deals and create strong investment opportunities for its investors and partners.
The investment round in Shape in September was C5’s fifth investment of 2019 following the successful first close of its Cyber Partners II Fund.
Increasing recognition of C5’s ability to identify and deliver superior investment opportunities leaves the C5 team well positioned to benefit from upcoming deals in 2020.
Commenting on the deal Andre Pienaar, Managing Partner C5 Capital, said:
“We were delighted to lead the funding round in Shape and its deal with F5 shows C5’s ability to identify valuable investment opportunities ahead of others. The combination of F5 and Shape will define the future of combatting botnet fraud and is an excellent deal for both businesses. C5 built a reputation to support fast growing technology companies in our niche sectors expand successfully globally. C5 enters 2020 with an experienced team, a portfolio of fast growing companies and a strong deal flow pipeline of new investments.”