Target Information

We are pleased to announce our strategic investment in Passbolt, an innovative open-source credential management platform that enhances security and collaboration for modern teams. Based in Luxembourg, Passbolt has rapidly established a strong reputation, serving over 400,000 daily users across 35,000 organizations globally, including government entities, defense agencies, and IT firms in more than 50 countries. The company was co-founded by Kevin Muller (CEO), Rémy Bertot (CTO), and Cédric Alfonsi (CPO).

Passbolt's distinct approach to password and security management, available through both on-premise and cloud solutions, prioritizes end-to-end encryption and employs a public-private key architecture. This approach facilitates secure sharing and management of credentials, making it an essential tool for IT professionals, DevOps teams, and organizations that value security and privacy.

Industry Overview in Luxembourg

The cybersecurity industry in Luxembourg has experienced significant growth, driven by increasing threats and the corresponding demand for effective security solutions. As companies digitize their operations, the implications of security breaches have led to heightened vigilance regarding cybersecurity measures. This environment makes innovative solutions like Passbolt increasingly vital.

Luxembourg's strategic location in Europe, combined with its pro-technology regulations, has positioned the country as a hub for cybersecurity startups and organizations. These factors promote an ecosystem that encourages the development of cutting-edge security technologies, enhancing the capabilities of local companies like Passbolt.

Moreover, the global focus on data protection regulations such as GDPR further underscores the need for robust cybersecurity solutions. Organizations are compelled to adopt stringent methodologies to protect sensitive data, which consequently fuels demand for efficient credential management tools.

As Luxembourg continues to invest in its technology infrastructure through strategic initiatives and partnerships, it fosters an environment where cybersecurity innovations can thrive, thereby highlighting the significant opportunity for growth in this sector.

Rationale Behind the Deal

This investment aligns with our strategic commitment to advancing pioneering technologies that tackle pressing cybersecurity challenges. We have been particularly impressed by Passbolt's unwavering focus on openness, security, and user-centric design. These core principles have cultivated a robust community of users and contributors dedicated to the platform, enhancing its value and capabilities.

We are enthusiastic about partnering with the talented leadership team at Passbolt to further accelerate their Product-Led Growth strategy. This collaboration will entail expanding their product offerings and exploring new market opportunities, ultimately elevating their impact on the cybersecurity landscape.

Investor Information

Our organization has a strong track record of investing in innovative technology companies, particularly those focused on cybersecurity. We prioritize partnerships that not only yield financial returns but also contribute to significant advancements in security practices. Our experience equips us with the insights necessary to support promising ventures like Passbolt effectively.

Our commitment to fostering innovation in cybersecurity reflects our understanding of its critical importance in today’s digital landscape. By investing in companies like Passbolt, we aim to play a pivotal role in developing solutions that enhance data protection and build trust among users and organizations alike.

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This strategic investment in Passbolt is characterized as a favorable opportunity in the increasingly vital sector of cybersecurity. With the exponential rise in cyber threats, credential management solutions like Passbolt are essential for organizations looking to safeguard their data and enhance collaboration.

Furthermore, Passbolt's strong user community and focus on open-source principles indicate a sustainable business model with room for expansion. The company's low churn rate and high net retention rate (NRR) signal robust customer satisfaction, making it a promising candidate for continued growth.

Investing in Passbolt not only positions us to benefit from its growth trajectory but also enables us to contribute to meaningful advancements in cybersecurity. This collaborative effort is expected to yield substantial returns in the long run, enhancing our portfolio with a forward-thinking technology that addresses a critical need.

In summary, the partnership with Passbolt is viewed as a strategically sound investment that aligns with our vision of supporting innovative cybersecurity solutions. We are excited about the potential impacts this collaboration can have on security practices worldwide.

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