“We are really excited. Can you imagine scratching and starting for 20 years, then having the chance to accelerate product development? says Mr. Bergmark.
“We can build a bigger team and a better service.”
Arrowroot Capital director Matt Klein said the fund was impressed with what the founders had managed to build with limited funds.
“They were extremely organized, buttoned up and had a high quality second level of management,” Klein said.
“Even though they didn’t have a big war chest to hire everyone, they slowly built the company and didn’t take shortcuts with things like having a good finance team or onboarding processes. .
“You don’t see much with companies with limited funds, and that spoke to their thoughtful team.”
The company primarily serves the financial services, government and academic sectors. Its clients include Tyro, Toyota Australia, Sydney Opera House, National Rugby League and Melbourne Polytechnic.
In fiscal 2022, Protecht is on track to generate over $20 million in revenue. Most of its revenue comes from Australia and New Zealand.
After opening an office in the UK less than three years ago, the region now contributes 10% of revenue.
One of the main priorities following its funding is to accelerate its expansion in the UK, and also to establish itself in the United States.
As part of this plan, Mr. Bergmark moved to Santa Monica.
“North America was the last frontier we entered, and I can’t wait to make it a success,” he said.
“We learned a few lessons along the way and a lot of time and planning went into entering the US market.
“We’ve focused a bit more on the targeted verticals – mid-sized financial services and government agencies – and we’re working with an agency to incorporate brand awareness into the strategy. [right].”
Protecht is the third Australian investment for Arrowroot, which previously backed HammerTech and Fluent Commerce.
The US fund had planned to establish a field presence in Australia in 2020, but those plans were disrupted by the COVID-19 pandemic.
But, with borders reopening, Mr Klein now plans to visit Australia in April.
“There have been a handful of companies that have shown that Australian software is globally portable,” he said.
“Australia has a strong grassroots ecosystem with early-stage investors helping companies get started and a great academic ecosystem creating computer scientists and engineers to launch those companies.”