Quorum Cyber Case Study

The way that technology impacts on the we live and work has changed rapidly over a relatively short timescale, meaning businesses are having to adapt their products and services to keep up with the changing consumer behaviour. 

Big data breaches suggest that existing protection is inadequate and are being increasingly stretched by the changing security environment and most notably the move to the Cloud and an API (application programming interface) economy as well as significant remote working. With APIs allowing various applications to talk to each other, vast amounts of data now being hosted within public clouds, and mobile users accessing networks from a variety of devices, hackers have a bigger target to go after and placing an effective firewall around an entire business is now very challenging. "An increase in people working from home and the current geopolitical arena, all mean that our services are now highly relevant", says Federico.

“Cybersecurity is now at the top of the agenda for most Boards, regardless of company size or industry,” he continues. “There has been a dramatic increase in cyber attacks that have caused real damage to organisations and nations across the world. Where before it might have been perceived as a luxury or a bit of an insurance policy, Boards are now super concerned and cognisant of the risks.”

At first, Quorum’s priority was to prove the technology and its ability to solve the problems being experienced by end users in the market. Once Federico and his team knew that they had a viable proposition based on an innovative and highly scalable product, the focus turned to growing the business and capitalising on these positive market tailwinds.    

“We wanted to keep the momentum going and work with larger customers across the world, and the reason for working with Maven was because they could fuel that growth,” says Federico. “When you are a company the size we are you need that help to allow you to grow faster.”

Maven doesn’t just provide financial support. Maven also seeks to equip its investee companies for success. Its highly experienced investment and portfolio executives can help management teams to continue to develop their business and provide direct input and guidance on strategic initiatives such as international expansion, bolt-on acquisitions, talent recruitment and driving operational efficiencies. This close support was actively sought by the team at Quorum, to supplement the existing skills and expertise within the business. “One of the reasons we ended up choosing Maven was that we wanted a true partner,” says Federico. “We can look after the technology side of things all day long because we are cyber security specialists, but we didn’t have prior experience of scaling a business and we wanted a partner who could support us on a number of fronts as they know more about building successful companies from the myriad of businesses they have supported.”

“We wanted somebody who was actively involved, not removed”, continues Federico. “We needed someone who we knew could plug into all our needs now, adapt when our needs changed, and be there at every step of our growth journey.”

A benefit of private equity, compared to other forms of finance, is the expertise and network of contacts a well-resourced manager like Maven can offer, particularly for earlier stage companies. This access to expertise can help a business professionalise its operation by introducing disciplines vital to the transition into a larger and more valuable business, particularly as it embarks on major strategic initiatives.

“It’s impossible to get involved and suddenly expect to understand it better than management. That just doesn’t happen”, explains David Milroy. “Instead, it is about growing your business in tandem with our help, support, and strategic input. We helped Quorum introduce the processes and rigour that we would see in more advanced businesses. The company also hired a new Finance Director which made a huge difference to the business, and we also introduced a Chair to ensure good governance and someone who could challenge as well as support the Board.”

Entering into a new relationship with any investor can represent a significant step change for any business, but what quickly became clear to Quorum was Maven’s focus on the team and willingness to work collaboratively with the senior management team to understand their needs and help them to achieve their potential, without interfering in the day-to-day running of the business.

“We’ve had a fantastic relationship with Maven since day one. Their approach is  completely different to what one might expect of an investor. It’s not all about the numbers. It’s about the team pulling together to achieve what all shareholders want to achieve, value creation. It’s about what are the challenges you are facing and how they can help you overcome them.” Frederico added.

During Maven’s tenure Quorum grew rapidly, increasing both annual recurring revenues and headcount fourfold, entering the US market and making several key hires including the appointment of a Chairman and Finance Director. It also strengthened its existing strategic partnership with Microsoft and demonstrated an ability to consistently win new corporate clients across a variety of sectors and geographies.

To support the company through the next stage of its growth, the decision was taken to sell Quorum to the mid-market private equity firm Livingbridge, with Maven retaining a minority investment in the business. The exit generated a 6.5x return for Maven investors, demonstrating the significant progress the business made in such a relatively short period of time. 

Federico concludes: “Our successful partnership with Maven has enabled us to accelerate growth and scale our business, and it has demonstrated what can be achieved with the right team and direction. I’m incredibly proud of the progress made with Maven as our investment partner and Quorum is ideally positioned to continue its rapid growth.