Encrypted messaging and collaboration startup Wire just raised $24 million. Check out the redacted 6-slide pitch deck it used to raise the funds.
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- Berlin-based Wire has raised $24 million in fresh funds from Cipio Partners and Iconical.
- The startup provides organizations with a secure collaboration and communication tool.
- Check out the redacted 6-slide pitch deck Wire used to raise the funds.
A startup that dubs itself as the most secure collaboration platform for enterprises and governments has raised $24 million in fresh funds.
Berlin-based Wire deploys end-to-end encryption to enable users to safely host video conferences, share files, and send messages. The company, which has recorded a spike in interest after the widespread adoption of remote work, claims its tech has been deployed by five of the G7 governments.
“It’s like if you marry WhatsApp and Microsoft Teams and deploy it in any kind of environment for sensitive privacy cases,” said cofounder Alan Duric.
Wire first launched as a consumer product but shifted its focus to B2B in 2018. The startup charges companies a monthly rate for its SaaS service, which enables them to operate through Wire’s cloud infrastructure. Wire also offers a more “ad hoc” model, where companies can run Wire on their own infrastructure.
Wire’s services are used by three primary groups. The first — which constitutes a large chunk of its customer base — is those who need to protect sensitive information in regular interactions, from intellectual property and corporate accounts to military use cases.
“The last German government was actually built on Wire,” Duric said, although he only realized this once he read about it in local media as the startup does not have access to user data.
Duric noted that competitors such as WhatsApp or Signal don’t necessarily combine functionality, such as SSOs or group collaboration in a business setting, in their services for enterprises.
Wire is therefore modeled as a complementary product for existing collaboration tools, and a lot of enterprises use the platform because some other apps are not automatically GDPR compliant if used solely for business purposes. With more employees working remotely, businesses have also migrated to Wire in a bid to collaborate across a platform that safeguards their company data.
While most customers remain confidential, Duric revealed that oil and gas giant Exxon uses Wire for compliance purposes.
The third group of users operate the service in business management, especially for crisis communications.
“Some of the companies use it for board communications, and some in the energy sector use it if their own critical infrastructure is down,” Duric added.
Following Russia’s invasion of Ukraine, the threat of cyber crimes in Europe has been amplified, and this has driven more users to Wire’s platform — especially a number of companies in the energy sector, according to Duric.
The ongoing invasion was also a factor that tipped investor attention towards Wire’s product, amid the global downturn in funding, he said.
The Series C round was led by Munich-based growth equity firm Cipio Partners, which has backed cleantech startup Silicon Mobility and language learning platform Speexx, and Iconical, a venture firm launched by Skype cofounder Janus Friis, with additional backing from existing investor UVC Partners. This brings the startup’s total funding to $53 million.
With the fresh funds, Wire will focus on developing its technology so that it can have a wider reach and be interoperable across multiple platforms.
Here’s a look at the redacted 6-slide pitch deck used to raise the capital.