With cybersecurity capturing the attention of corporate CEOs, an Austin security consulting firm has raised $35 million to target new business.
Edgile received the funding from ABRY Partners, a Boston-based private equity firm. The investment is the first outside capital the firm has received.
The firm was founded in 2002 by a group of former Deloitte and Touche partners in San Jose, Calif. Edgile moved to Austin four years ago to tap into the region's talent pool and expand its college recruiting efforts.
Edgile works with Fortune 500 clients, advising them on how to secure their corporations and working with them as they acquire and integrate new technology and create security strategies.
Today, the 120-person firm's clients include Microsoft, Caterpillar and United Healthcare.
The firm is profitable, and revenue has grown 100 percent each year over the past two years, doubling from $20 million to $40 million in 2015, said Don Elledge, Edgile CEO.
That growth is being driven by a new urgency among corporate leaders to address security issues and the threat of being targeted by hackers, Elledge said.
"There's been a drastic change, and security is now being driven by the top down," Elledge said. "Five years ago, this was something the chief strategy officer did. Now it's the board of directors coming down and asking really pointed questions like 'Are we secure? Can you assure me we're not at risk?' "
Executives are concerned because of the high cost of public security breaches, both financially and in a brand's reputation, Elledge said.
"They're aware of the huge amount of publicly disclosed compromises that have taken place," he said. "Every month, it's a new big name company -- Home Depot or Sony or even the federal government have had huge amounts of data stolen," he said. "The publicity is really what's driving this."
In light of the growth in security and risk consulting, Edgile decided to make an expansion push, seeking private equity to do it, Elledge said.
To make the push, "we felt we really needed a strong partner with deep financial pockets supporting us," he said. "The funding allows us to continue to attack the market and aggressively hire the best talent out there."
The firm plans to enter new markets, including New York and Atlanta; broaden its services and expand its college recruiting efforts, Elledge said.
Edgile is currently hiring consultants, directors, engineers and systems architects.
"Part of our growth strategy is to put a bigger focus on hiring out of universities," Elledge said. "We're recruiting out of graduate engineering schools, computer sciences and business, and we're excited to be growing this way."
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