KnowBe4 launches venture capital arm

Focused on seed to Series B.

Cybersecurity training platform KnowBe4 has launched a venture capital fund, KnowBe4 Ventures, focused on seed through to Series B.

As humans can often be the weakest link when it comes to falling for phishing scams, the venture arm will focus on the human layer of cyber security.

According to Stu Sjouwerman, founder and CEO at KnowBe4, “Cyber attacks continue to plague organisations in every industry.

“The majority of these attacks target the human, so it is important to support founders taking on the challenge of improving security culture and accelerating the importance of securing the human layer.”

Verizon’s 2022 Data Breach Investigation revealed that 82 percent of breaches involved a human element, however less than three percent of cybersecurity budgets are focused on the human layer.

According to a spokesperson, “This spend mismatch is an opportunity for KnowBe4 Ventures to invest in innovative companies that strengthen and support the human layer of cybersecurity.”

KnowBe4 Ventures are partnering with two existing cybersecurity venture funds, Elephant and Ten Eleven Ventures on the initiative.

Elephant focuses on the enterprise software, consumer internet and mobile markets, while Ten Eleven Ventures is dedicated to growing cybersecurity companies.

KnowBe4 Ventures is set to invest in companies with the following characteristics:

Address human layer of cybersecurity
Actively raising with lead investor
Product in market and customer traction
Compelling financial strategy and long-term growth potential

The investment size will depend on the structure of the round and the stage of the company.

While the KnowBe4 Ventures if focuses on cybersecurity the firm has stated that it may make investments related to the core business such as learning innovation.

KnowBe4 is used by over 52,000 organisations worldwide. The organisation’s focus is on raising awareness around ransomware, CEO fraud, and social engineering tactics, providing training on security to end users.

Portfolio companies include Adlumin, Easydmarc and Lumu.