Pushing the growth story further with fresh capital
Munich, Münster, Barcelona, January 12, 2021 – Two years after its foundation and many successfully implemented projects, Build38 is ready for the next growth step. The provider of mobile app security solutions has succeeded in closing its Pre-Series-A funding round with two new investors. This brings the number of Build38’s institutional backers to three. In addition to G+D Ventures, which originally joined as a seed investor, Caixa Capital Risc and eCAPITAL ENTREPRENEURIAL PARTNERS are now also part of the team and co-led the round. With the capital received, the expansion into further markets is to be driven forward and the multi-layer security framework is to be further developed with AI functions.
In the first two years of its existence, Build38 has succeeded in concluding several long-term contracts worth several million euros from key industries like automotive, transit, e-identity, digital healthcare and financial services. Apps include digital car keys, mobile ticketing, SoftPOS and government-approved mobile IDs, which Build38 protects. To address even more markets and application scenarios in the future, the company has embarked on a search for funding partners.
eCAPITAL is a venture capital firm that provides early to growth stage funding to technology companies in the fields of software & information technology, cybersecurity, industry 4.0, new materials and cleantech. eCAPITAL joining as a shareholder validates Build38’s solution offering, value proposition and market. Caixa Capital Risc, being one of the leading VCs in Spain backs early-stage tech B2B SaaS companies, focus on deep tech theme, and predominantly invests in Spanish and Portuguese technology companies. Build38 has an office in the city of Barcelona where a significant part of their development and operations are hosted and Caixa Capital Risc will work closely with the team to help growing and bringing business in Southern European markets.
Investment in Product and Market Growth
The financial injection from the two new investors will be used in Europe and Asia to expand the capabilities of the Security Solution and Mobile Fraud Protection with additional AI functions. In this way, it should be possible in the future not only to protect apps from potential attacks and threats, but also to predict when they might occur. Furthermore, an expansion of the business development team in Europe and Asia is planned. In addition, new fields and channels will be developed in the currently existing regions to expand the partner network.
“We are happy to have two such experienced investors newly on our side, who trust in our solution and our chosen course,” says Dr. Christian Schläger, CEO of Build38. “With their support, we are able to further advance our security framework, tackle new markets, and expand our team and network. Although 2020 has been full of challenges, we have taken the opportunity to explore our market and growth strategies, and have started to identify and build the appropriate sales channels. Following on from this, we have already succeeded in establishing long-term customer relationships and generating business. Giesecke+Devrient – our existing investor and important customer and reseller in Europe and Asia – has been a major support in this. This development gives us a positive start to 2021 with a clear focus on the growth of the Software-as-a-Service (SaaS) business.”
Growth market “Mobile Security”
In the previous year, it was possible to observe how strongly companies expanded and increasingly used mobile channels. More and more consumers are interacting digitally with service providers – mainly via mobile apps. This general trend was accelerated by the pandemic situation. At the same time, however, attacks on Apps and mobile commerce increased at an above-average rate. This trend brings with it numerous challenges in terms of security and fraud. Build38 can help service providers and their solution providers bring innovative, fraud-proof services that comply with security and privacy regulations to market in the shortest possible time and with a optimal return on investment. With its SaaS offering, Build38 ensures that customers and partners always receive continuous customer service and benefit from enhancements and updates throughout the product lifecycle.
Roma Jelinskaite, Principal at Caixa Capital Risc and member of the Build38 Advisory Board, says about the investment: “Cybersecurity is the present and the future of mobile application development. We are incredibly excited to back the entire Build38 team as they take on this hard-to-solve problem. Build38 develops cybersecurity services that bring the magic of complete mobile application protection solution with full visibility to security teams. Moreover, as they are constantly under immense pressure of cyberattacks becoming more sophisticated and volume grows exponentially.“
Dirk Seewald, Partner at eCAPITAL and member of the Build38 Advisory Board, adds: „Mobile-first is a wave that comes with tremendous challenges securing the mobile itself, the app, digital valuables and personal data in the app as well as the backend processing infrastructure. There is no easier way than integrating the Build38 solution into mobile developers‘ and providers‘ systems to integrate a powerful cyber security architecture with just a few keystrokes. We very much look forward to becoming part of the Build38 success story and to work with a highly experienced team building the next mobile security category leader.“