Cavelo Raises $1.3 Million Pre-Seed As it Looks to Help Companies Regain Control of Their Data
BY ISABELLE KIRKWOOD FEBRUARY 4, 2021 Cavelo, a Kitchener-Waterloo-based SaaS startup, has raised a $1.3 million CAD pre-seed round of financing.
While Cavelo’s CEO James Mignacca would not disclose the angel investors, he told BetaKit the angels that participated in this round also participated in his last company RootSecure, which exited via an acquisition in 2018. He noted that Mark Morin, CEO and founder of Auvik Networks, a known angel investor, joined Cavelo’s board following the funding.
The new capital will be put toward platform development and scaling Cavelo’s team.
Cavelo aims to help businesses proactively reduce data risk and achieve compliance with its automated data discovery, classification and reporting software.
The startup was founded in 2020. Mignacca explained to BetaKit following Arctic Wolf’s acquisition of RootSecure, he spoke with executives of several companies in the United States about the challenges their businesses faced.
“At that point in time, I realized there was a theme that folks were telling me, which was around the fact that they’re losing control of their digital data,” he said.
The CEO views this problem as falling into three underlying causes. The first is that companies are moving to the cloud, causing them to have a distributed data model. The second is the recent surge in digital transformation, which is leading to exponential data growth for a number of industries. The third is a distributed work model, accelerated by the COVID-19 pandemic, which Mignacca said makes it hard for companies to know where data is.
“When you overlay compliance and regulation, you need to know where your data is, at any point in time,” he said. “It became obvious to me that this is a problem that companies are going through and they’re challenged to be able to address it because quite frankly, they don’t have the reason resources and expertise in-house in order to solve the problem themselves.”
Cavelo’s cloud-compatible platform continuously scans, identifies, and classifies sensitive data across machines, servers and cloud applications. This is aimed to simplify compliance reporting and risk remediation.