Key facts
- Inforcer, a platform for managed service providers (MSPs) serving small and medium-sized businesses (SMBs), raised $50 million in Series C funding.
- The funding round was led by Insight Partners, with participation from Dawn Capital and Meritech Capital.
- Inforcer's platform helps MSPs manage Microsoft 365 accounts and addresses growing AI and cybersecurity risks for SMBs.
- The company has raised a total of $110 million in the past 18 months, experiencing 300% year-over-year growth.
- New product developments include Shadow AI detection and a threat detection and response tool.
- Inforcer is transitioning to a per-user pricing model for some of its tools.
Inforcer, a London-based company that provides software for managed service providers (MSPs) to manage small and medium-sized business (SMB) clients' Microsoft 365 accounts, has secured $50 million in a Series C funding round led by Insight Partners. This latest investment brings Inforcer's total funding to $110 million over the past 18 months, reflecting significant investor interest in solutions addressing the growing IT complexities faced by SMBs, particularly concerning AI and cybersecurity risks.
Co-founder and CEO Jamie Daum stated that the rapid funding rounds were necessary due to the fast-evolving nature of cyber threats and AI. Inforcer has focused its capital on product development, including features like Shadow AI detection to identify unauthorized AI tool usage on company devices and a threat detection and response tool to combat cybersecurity risks in real-time.
Co-founder and chief community officer William Connor highlighted the increasing sophistication of cyberattacks, noting that AI is being used by attackers to identify targets and craft more convincing phishing attempts. Daum emphasized that these threats are more automated, scalable, and difficult to defend against for SMBs. Connor also pointed to risks around data governance and the management of AI and agents within businesses.
Inforcer plans to expand its operations in the U.S. and is adjusting its business model. While its previous '365 Manager' was priced per client, the new threat-detection tool will use a per-user model, aligning with how MSPs typically sell to their customers. Daum indicated that future AI-focused products might adopt consumption or token-based pricing.
The company remains focused on the Microsoft suite, believing there is ample room for specialized vendors to serve smaller customers, as Microsoft primarily targets larger enterprises. Connor views Inforcer as complementary to Microsoft rather than a competitor.