Cyber Security Roll-up, Cybolt is Tracking $50M in Sales and Raising New Funds
Plus, Evernote founder Phil Libin on the pod!
I’m starting to finally appreciate the value of time. I always viewed time as money — but more as a mantra than a practice. For me, quarantine really helped me gain perspective. And, the idea of giving that time back to sit in traffic or an office all day is utterly insane to me.
So, when I sat down with Evernote founder Phil Libin about his latest productivity venture, mmhmm — a video tool designed to evolve Zoom videos from an in-person alternative to a replacement — I knew I was in for a helluva show!
It did not disappoint.
Listen to my full interview with Phil Libin here:
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Cybolt is an end-to-end digital risk management and cybersecurity solution.
Cybersecurity is an extremely fragmented marketplace with over 3500 vendors aiming to provide solutions. Cybolt is trying to capitalize on this by eliminating the need for multiple suppliers so clients can solve all of their Digital Risk Management and Cybersecurity needs under one roof.
Meet the Founder
Watch my full interview with Cybolt Founder Mauricio Rioseco here.
Mauricio has more than 25 years of experience in investment banking and corporate finance. He’s been involved in more than 30 M&A transactions with emphasis in IT, services, hotels and manufacturing sectors.
Cybolt is the culmination of Mauricio’s career. He’s built a conglomerate by putting together several individual business units under one cybersecurity roof. Which is a testament to his M&A experience. It’s actually rather genius — I’m honestly surprised more startups and small businesses don’t do this. The challenge will be managing multiple “CEOs” while steering the ship at full speed.
200+ active international clients
Revenue of $26.5M in 2020 and projected revenue of $51M+ in 2021
Average EBITDA growth of 150% in the last two years
Global industry value of $173B in 2020, expected to be $270B by 2026
Helped MealPal build their tech team and raise $35M
Cybolt is the result of a successful merger of Latin American Cybersecurity market leaders in 2019. The end result is more than 200 business clients to power immediate growth across 4 main sectors (Finance, Retail, Manufacturing and Public). The company has plans to rapidly expand into North American markets and expectations are to eventually take the company public within the next 8 years.
Terms & Takeaway
Invest in Cybolt here 👉 Term Sheet
Security Type: Stock Purchase Agreement
Pre-Money Valuation: $140,000,000
Investment Goal: $5,000,000
Raised (as of publishing): $1,644,608
Minimum Investment: $262.50
Here's what I like: I absolutely love how they put this business together (which does not mean it will work, but it’s smart AF). I’ve advised numerous startups to join forces and firmly believe taking a more of a PE firm approach to assembling small businesses to strategically attack highly fragmented industries is smart business. As far as the market, cybersecurity is as big as any in the world and if crypto and 5G continue dominating mainstream use cases; it will be the biggest industry of them all!
Here's what I don't love: Obviously, the valuation is silly high, but at least you’re investing in the equivalent of four companies in one 🤷♂️. Additionally, there’s the anticipated managerial nightmare of dealing with multiple former CEOs — no matter how talented the leader might be, ego and misaligned agenda is something to consider.
Who should invest and why: Given the growth rate in Latin America alone, Cybolt is very intriguing. Additionally, I love how the company was assembled and the team is strong with a very clear mission to expand upward and onward towards an IPO, which is great to hear as an investor. What remains is the valuation that IPO would need to be for us investors to weigh Risk vs. Reward. All of that said, the cybersecurity industry has plenty of room for Cybolt and they’re already a global business.
As always, startup investing is super high risk, anything can happen.
Invest in Cybolt here 👉 Term Sheet
Questions? DM me on Twitter @kitun