For the second time in six months, Halifax-based security intelligence company LifeRaft has drawn investment from the Canadian Business Growth Fund, or CBGF, which is backed by the country’s largest financial institutions.
The parties did not reveal the size of the round, though the press release announcing the investment said the Toronto-based fund customarily makes investments of $3 million to $20 million. They similarly didn’t reveal a funding total when CBGF made its first investment in October.
LifeRaft will use the money for sales, marketing and development of its Navigator product, which alerts companies and organizations if online activity flags a threat to its employees, customers or assets. Its array of features can be used for such tasks as crisis management, critical infrastructure monitoring, executive protection, facilitate security, fraud prevention, location monitoring, and threat detection.
“We are ecstatic about what we have been able to accomplish in such a short time with the guidance and support from CBGF,” said LifeRaft CEO John Gallinaugh in a statement. “We look forward to continuing the strong partnership we’ve built and executing on our plans for further growth.”
Since the initial investment in October 2020, LifeRaft has continued to grow, increasing revenue by more than 25 percent by adding customers and increasing sales to existing clients, said the statement. The company’s headcount has increased by 27 percent so it now employs 60 people full-time and has five contractors.
As well as its two investments in LifeRaft, CBGF also closed a substantial funding round with Halifax’s Proposify in June 2020. The fund, which has $545 million under management, is backed by the largest Canadian banks and insurers. Two of the 15 active companies in the CBGF portfolio are based in Atlantic Canada.
“CBGF is proud to have backed John Gallinaugh and the LifeRaft team who have diligently executed their growth strategy since our initial investment,” said CBGF Chief Executive George Rossolatos. “We believe there are many opportunities ahead for the company as it continues to grow into a leading provider in its space. We are thrilled that LifeRaft is generating employment opportunities in Halifax and we look forward to partnering with other great management teams in the Maritimes.”