The City billionaire Lord Spencer is spearheading a £16m investment in Glasswall, a British cybersecurity specialist which is trying to transform its performance under a new management team.
Sky News has learnt that the former ICAP tycoon and one-time Conservative Party treasurer, who was recently ennobled by Boris Johnson, has agreed to anchor the fundraising.
Lord Spencer is investing roughly £11m, or two-thirds of the funding round, through his private investment vehicle, IPGL, according to people close to the deal.
The remainder is understood to be being lined up from a syndicate of other investors.
Glasswall originally secured IPGL as an investor two years ago
The company specialises in an area of cybersecurity known as Content Disarm and Reconstruction, which involves regenerating files and documents to a level called “known good” – which Glasswall claims is superior to antivirus products.
It says its existing clients include GCHQ, the CIA and the law firms Freshfields Bruckhaus Deringer and Slaughter & May.
Sources said that Glasswall’s latest fundraising was taking place at a valuation of roughly £15m prior to the absorption of the new capital – an indication that the company has yet to gain the commercial traction that its original leadership and shareholders expected.
It has installed a new leadership team including Danny Lopez, a former Barclays executive, as its CEO.
The company’s board includes Sir Peter Westmacott, the former British ambassador to the US.
Glasswall could not be reached for comment on Friday, while Lord Spencer declined to comment.