Netacea raises further £4m to step up battle against the bots
Press release
Netacea, the cybersecurity specialist that helps companies prevent online fraud by protecting them against bot attacks, has raised a further £4m from Mercia Asset Management, which is investing from its own funds and the first Northern Powerhouse Investment Fund (NPIF).
The latest investment will help Manchester-based Netacea to further extend its AI roadmap, expand its product range and continue its growth.
Bots are responsible for over half of online fraud cases and advances in ‘offensive AI’ are making them more aggressive and harder to stop. Netacea’s fifth-generation AI-driven platform can not only detect and prevent live attacks that may be missed by other cybersecurity products but also give forewarning of future attacks.
The company has developed an open-source framework that maps every stage of an attack, from advance planning as criminals seek ways to breach a company’s defences to selling the products or information afterwards. The BLADE framework, as it is known, is fast becoming the standard model for business security teams and Netacea is developing products and services to cover all stages of the attack process.
Netacea was established in 2022 as a spin-out from the Intechnica Holdings, an IT consulting business backed by Mercia and the first Northern Powerhouse Investment Fund. Following Intechnica’s sale to US-based Crosslake Technologies last year, Mercia and NPIF retained a stake in Netacea.
The company now employs around 60 staff and has a client base that includes some of the world’s largest online retailers and major brands. It increased revenue by 29% in the financial year to March 2024 and is on course for continued growth in the current year.
Mick Bradley, CEO of Netacea, says:
The cost of online fraud is rising at an alarming rate and with the growth of e-commerce and adoption of offensive AI, is estimated to reach $7.95 trillion by 2027. Solving this problem is not only about stopping attacks, but also understanding the intent, planning and execution. Netacea’s industry-leading threat Intelligence, along with our AI-driven intent-based analytics tools, enables us to identify and stop significantly more bot attacks than traditional methods. This latest funding will enable us to accelerate product development and further extend our AI.
Angela Warner from Mercia commented:
Netacea has become a thought leader in its field and Mercia is pleased to have been able to play a key role in its success, and that of Intechnica from which it arose. This investment will enable it to continue its growth. It also reinforces Mercia’s position as a leading cyber security investor.
Our portfolio companies are addressing critical challenges across the security spectrum - from bot detection and threat intelligence to digital forensics and supply chain risk management. The sustained interest we are seeing in this sector validates our early conviction in these technologies, and we continue to actively evaluate opportunities in this space.
NPIF– Mercia Equity Finance provided equity investments in the NPIF region with a focus on Yorkshire & the Humber and Tees Valley. The British Business Bank has since launched the Northern Powerhouse Investment Fund II in March 2024.
The new £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
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Notes to editors
About Mercia Ventures
Mercia Ventures is a proactive venture capital investor focused on being the first-choice partner for growth. Mercia Ventures makes equity investments of up to £10million across all sectors, with specialisms in Software, Consumer, Healthcare and Deep Tech.
Mercia Ventures is a trading name of investment funds managed by Mercia Fund Management Limited and Mercia Regional Ventures Limited, part of the Mercia Asset Management PLC Group, and sits alongside the Group’s wider private equity, debt and proprietary balance sheet operations. The Group has 11 offices in the UK, and Mercia Ventures’ national footprint and 48 strong investment team draws on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help our partner companies successfully achieve their ambitions. As at 30 September 2023, Mercia Asset Management PLC has c.£1.5billion of assets under management. Mercia Asset Management PLC is quoted on AIM with the epic "MERC".
The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds, and details about open offers can be found through Mercia’s website.
Mercia Asset Management PLC is quoted on AIM with the epic "MERC" and includes the following wholly owned subsidiaries -
- Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
- Mercia Regional Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
- Mercia Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
- Frontier Development Capital Limited is authorised and regulated by the FCA under firm reference number 829697
About the Northern Powerhouse Investment Fund II
- Operated by the British Business Bank, NPIF II provides a mix of debt and equity funding. NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support the North’s smaller businesses at all stages of their development.
- The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Greater Manchester, Lancashire, Cheshire & Warrington, Cumbria, Liverpool City Region, Leeds City Region, South Yorkshire Combined Mayoral Authority, York & North Yorkshire, Humber and East Yorkshire, Northumberland, County Durham, Tyne & Wear
- Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).
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