Target Overview

We are pleased to announce our investment in Protos Labs, a Singapore-based cybersecurity company that has pioneered a real-time approach to quantifying cybersecurity risk, adapting to the ever-evolving cyber threat landscape. Founded in August 2021 by Joel Lee and Simeon Tan, Protos Labs has developed an innovative framework to enhance cybersecurity risk assessments, essential for organizations looking to mitigate risks effectively.

The company has implemented a threat-based methodology that helps insurers accurately underwrite their cyber risks. This unique approach addresses one of the significant challenges faced by the cyber insurance industry: fluctuating cyber threats and the inadequacies of traditional risk assessment methods. By utilizing its flagship software, Nexus, Protos Labs is positioned to transform how businesses and insurers address cyber threats.

Industry Overview in Singapore

The cybersecurity landscape in Singapore is rapidly developing, driven by the increasing digitization of the economy and the emergence of sophisticated cyber threats. As incidents of data breaches continue to rise, the financial implications on targeted sectors, notably BFSI (Banking, Financial Services, and Insurance), have become alarmingly significant. For instance, the average cost of a data breach in this sector reached US$5.97 million in 2022.

Despite the growing recognition of cybersecurity's importance, many current risk management approaches remain static and outdated. Compounded by a challenging threat environment, insurers face mounting pressure to reassess their methods and offer more dynamic, real-time evaluations. The existing frameworks—compliance-based, maturity-based, and risk-based—fail to adequately inform businesses of their real vulnerability against emerging threats.

Protos Labs aims to disrupt this narrative by bridging the gap in the market. With an adaptive threat-based framework, they provide actionable insights rooted in real-world data. The investment community is beginning to engage more critically with the cybersecurity sector, recognizing the necessity of advanced methodologies that reflect the industry's reality.

Rationale Behind the Deal

The decision to invest in Protos Labs stems from the company's innovative threat-based assessment technology and its significant potential within the burgeoning cybersecurity market. As enterprises increasingly require automated solutions for dynamic risk assessments, Protos Labs is ideally positioned to meet this demand. Their capacity to analyze real-time threats equips insurers and organizations with the tools needed to significantly improve cybersecurity investments and risk management strategies.

Investing alongside notable partners, including TIM Ventures, Plug and Play, and other high-net-worth individuals, highlights the collective confidence in Protos Labs' vision and business model. The funding will empower the company to expand its market presence and further enhance its pioneering risk quantification solutions.

Investor Information

The investment comes through the Investible Early Stage Fund 2, a venture capital fund dedicated to empowering innovative startups in the Asia-Pacific region. We believe that the compelling combination of Protos Labs' cutting-edge technology and the extensive experience of its founders will yield substantial returns as demand for robust cybersecurity solutions surges.

Both Joel and Simeon possess a wealth of experience in cybersecurity, having previously worked at Booz Allen Hamilton, where they developed critical cybersecurity frameworks for multinational corporations. Their combined expertise positions them uniquely to guide Protos Labs through the intricacies of the cybersecurity sector.

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In evaluating this investment opportunity, it is clear that Protos Labs represents a transformative player in the cybersecurity market. Its application of real-time threat assessments is innovative and much needed, particularly in today's volatile cyber environment. As traditional models falter, Protos Labs’ unique approach promises to deliver more accurate risk evaluations that can significantly benefit insurers and enterprises alike.

The founders’ understanding of the cybersecurity landscape, combined with established partnerships—including key collaborations with insurers and governmental entities—demonstrates the company’s momentum and future potential. With the Southeast Asian cybersecurity sector expected to expand, Protos Labs is well-positioned to lead this growth, offering an adaptive solution that meets pressing industry needs.

Considering these factors, we believe this investment in Protos Labs is prudent, marking a timely entry into a high-demand market. Their trajectory suggests strong prospects for scale and impact, thus making it an outstanding investment opportunity that aligns with our strategic vision.

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