Edinburgh firm guarding against AI threat on growth path with £5 million investment
“As the threat landscape continues to evolve, developers and enterprises alike are recognising that mobile app security cannot be an afterthought” – Ted Miracco, CEO
An Edinburgh-based mobile app security pioneer has secured a £5 million funding injection as it looks to grow its headcount and push into new markets.
As part of the deal, Approov has secured £1.2m from the Investment Fund for Scotland (IFS), managed by Maven Capital Partners. It forms part of the wider £5m funding round with participation from Sir Brain Souter’s Souter Investments vehicle, and existing investors Lanza techVentures and Scottish Enterprise.
Approov has developed patented mobile security technology that protects apps from AI-driven threats, promising a “stronger and more reliable alternative to traditional code obfuscation”. As winner of the cyber innovation award at this year’s Scottish Cyber Awards, the firm’s technology has already established a strong presence in the global automotive and financial service sectors.
The funding milestone will enable the business to bolster its research and development (R&D) team in Edinburgh. It will also allow the firm to invest in its sales and marketing operation as it grows its market reach, diversifies into new sectors and expands its international footprint.
Chief executive Ted Miracco said: “As the threat landscape continues to evolve, developers and enterprises alike are recognising that mobile app security cannot be an afterthought. This funding marks a pivotal moment in our mission to ensure that every mobile app instance is authenticated and that backend APIs [application programming interfaces] are protected from fraud, abuse and unauthorised access.”
Craig McGill, investment manager at Maven, which is headquartered in Glasgow, said: “Approov is a leading innovator in mobile app and API security with proven applications in multiple target sectors.
“With their strong IP and the growing demand for API-level defences across the industry, the business is uniquely positioned to lead this next era of mobile security. We look forward to working with Ted and the team to drive the business forward at such an exciting point in the company’s growth journey.”
Sarah Newbould, senior investment manager at nations and regions investment funds, at the British Business Bank, added: “Approov is a strong example of a Scottish company developing smart technology to tackle a global challenge. As mobile apps and APIs become central to business, protecting them from increasingly sophisticated threats, including those driven by AI, is critical.
“We’re pleased the Investment Fund for Scotland is able to support Approov as it grows its team in Edinburgh and expands into new markets. This investment reflects IFS’s commitment to backing ambitious companies with the expertise to drive Scotland’s tech sector forward.”
Operated by the British Business Bank, the Investment Fund for Scotland provides a mix of debt and equity funding. It offers a range of commercial finance options with smaller loans from £25,000 to £100,000, debt finance from £100,000 to £2m and equity investment up to £5m.
The fund works alongside the in-region small business finance ecosystem, local intermediaries such as accountants, fund managers and banks, to support Scotland’s smaller businesses “at all stages of their development”.
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