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Sydney-founded enterprise risk management (ERM) software group Protecht has received a US$280 million ($445 million) investment from Boston-headquartered growth equity firm PSG, with plans to develop new AI-driven capabilities on the platform which is used by a range of industries globally from education to financial services.
Founded in 1999 by former PwC and Industrial Bank of Japan colleagues David Tattam and David Bergmark, Protecht has a Software as a Service (SaaS) solution encompassing enterprise risk management, compliance, training and advisory services, with offices in Sydney, Los Angeles, and London.
Today's announcement follows a US$30 million Series A investment from Arrowroot Capital in 2022 that enabled a US market entry, and a US$12 million injection from MARS Growth Capital the following year aimed at furthering global expansion efforts.
PSG highlights increasing operational complexity and growing regulatory scrutiny as driving factors behind the investment, putting organisations under greater pressure to adapt.
"The global risk management market is projected to reach nearly US$22 billion by 2029, underscoring the immense need for innovative, and scalable solutions," says PSG managing director Adam Marcus.
"In our view, Protecht, with its strong client retention, stands out as a leader in the GRC software space.
"We believe Protecht is positioned to capitalise on this growing market, and we are excited to partner with the team to help drive the next phase of their global expansion and innovation."
PSG adds that its strategic investment will empower Protecht to help deliver AI-driven risk management solutions, positioning Australian tech companies to be among those at the forefront of addressing global enterprises' needs.
"With 79 per cent of global data under policy regulations, and 60 per cent of companies needing but lacking effective third-party risk management, Protecht empowers businesses to navigate these challenges and help make smarter, more resilient decisions," says Protecht co-founder, and chief research and content officer,David Tattam.
Protecht co-founder and CEO David Bergmark describes the investment as a "significant milestone" for the company.
"We are embarking on the next phase of our growth alongside the PSG team, whose operational expertise and resources will help us scale globally," Bergmark says.
"Together, we share a vision to supercharge Protecht’s offering with AI, driving innovation and advancing the transformation of risk.
"With PSG's support, we are poised to enhance our offerings and provide great value to our clients, helping them navigate the complexities of today's regulatory landscape."
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