Invest NL

EclecticIQ B.V.

TOPSS Covid-19 investment program

Investing together in a European cyber security ecosystem

With its investment in the fast-growing company EclecticIQ, Invest-NL is making an important contribution to the development of this European leader in cyber threat intelligence. The investment contributed to the decision by French investor Ace Capital Partners and Belgian investor Capricorn Partners to also participate in the €20 million equity round. Joep Gommers (founder and CEO of EclecticIQ) and Michiel Jonkman (senior investment manager at Invest-NL) are working together on a strong European ecosystem.

EclecticIQ is a globally-operating technology provider in cyber threat intelligence, hunting and incident response. EclecticIQ supports governments, large corporations and service providers in the management of cyber threat intelligence, the formation of a broad and collective picture of current cyber threats and an intelligence-driven approach to cyber security. Joep: "Simply put, we help our customers manage and detect information about threats on the Internet. From threats of warfare and terrorism for central governments and security agencies to cyber crime for large corporations."

Michiel: "After an in-depth analysis and a good introduction, we were convinced that EclecticIQ was a once-in-a-life time financing request. Its products, the market, the trends, the management team, everything made sense. It was also very clear to us that there are few financiers investing in this area. This was all the more reason for us to do everything we could to make this financing possible. As the process progressed, we were strengthened in this conviction." Joep adds: "For EclecticIQ, it was very important to have Invest-NL on board. As a result, Ace Capital Partners and Capricorn Partners also stepped in. The finance will be used to intensify our services, expanding our portfolio and strengthening the company's global base. With this investment, EclecticIQ will accelerate its strategic transition from a leading threat intelligence platform provider to an innovative global leader in cyber security."

Invest-NL is participating in the equity round of EclecticIQ through the Temporary Bridging Loan Programme for Innovative Start-ups and Scale-ups (TOPSS). Through the TOPSS programme, Invest-NL guarantees the availability of venture capital for innovative start-ups and scale-ups with good prospects that are affected by the Covid-19 crisis.

In this sector, ecosystem thinking is essential

Michiel: "We like the cooperation very much. Joep is unique, in the sense that he excels in the key areas that a CEO should be good at (e.g. strategy, innovation, leadership, public relations). As a result, he oversees the consequences of events down to the smallest detail. Joep has a fine personality. That works very well."

Joep: "Invest-NL is very knowledgeable. There is a lot of knowledge and intelligence in that organisation. They really want to understand the business, in terms of both finance and content. Invest-NL is also well connected in the ecosystem here in the Netherlands. That was important to us. We operate internationally, but we also have important clients in the Netherlands. That ecosystem thinking is very helpful. Invest-NL is a good robust shareholder. It may be a young company but they have very experienced people. I was impressed by the speed with which they take action. They had done their homework well and could therefore make rapid progress."

Joep: "There is no large cyber security ecosystem in Europe. As a result, we cannot be strategically independent at European level. We have a history in the American ecosystem and very deliberately started in the Netherlands to contribute to such an ecosystem here as well."

It is my conviction that more cooperation results in better mutual understanding

"Our world is in danger of becoming more and more polarised. On the contrary, we need more cooperation. Also with countries that are currently very sensitive, such as some countries in the Middle East. For our business, this is obviously an issue. But in the long run, it is economic cooperation that creates a mutual dependency that exchanges morality, customs and cultures. It is my conviction that more cooperation results in better mutual understanding. And ultimately in a de-escalation of situations. At the moment, we are seeing many collaborations halted or put on the back burner. That may appear to be safe because you are less confronted with what happens in those countries. But ultimately it makes the situation less stable at a global level and for us here in Europe."

The future of the relationship between Invest-NL and EclecticIQ is looking bright. Joep: "The eco-system thinking we share is very important in this regard. We are a party that tries to remain independent, and thus keep this technology available for Europe. In this mission we will certainly come together in the future."

Michiel: "EclecticIQ has taken some important steps since our investment. We will see the results of this in the coming years. As a board observer, I know that there is still more in the pipeline, so we look to the future with great enthusiasm."

Making a social impact is very important to Joep and Michiel. Both professionally and personally. Joep: "I am self-taught. From the age of 14, I started working because the education available did not fit the world as I experienced it. I like to support initiatives that teach young people about computer engineering, computer science and cyber security in a way other than classical education. This approach fits well with the ways in which young people acquire and integrate knowledge. And it is much more in line with current market demand."

Michiel: "I have inherited the power of innovation. I grew up in an entrepreneurial family, where innovation played an important role. Today, more than ever, it is clear that developing new ways and techniques and bringing them successfully to the market is crucial to what our future will look like. This conviction is still with me every day at Invest-NL. Our society will change more in the next 10 years than it has in the past 20. The number of breakthrough technologies is impressive. I think many people's expectations will be exceeded."

EclecticIQ

Place of business: Amsterdam
Sector: ICT
Transaction date: 24 September 2020
Total finance from Invest-NL: € 4 million (shares)

Invest-NL is investing € 4 million as part of a total equity round of € 20 million. The commitment of Invest-NL has contributed to the decision by French investor 'ACE management' and Belgian investor 'Capricorn' to participate in this equity round.

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Contact

Questions about this case? Please do not hesitate to contact me.

 

Michiel Jonkman
Sr. Investment Manager Invest-NL

[email protected]