Inforcer Secures $50M to Bolster AI and Security Solutions for Smaller Businesses

London-based Inforcer has announced a $50 million Series C round, led by Insight Partners, to further develop its software for managed service providers (MSPs) managing Microsoft 365 accounts for small and medium-sized businesses.

The growing demand for MSPs is largely driven by the increasing complexity of IT, especially with the rise of AI and security risks. Inforcer's software enables MSPs to manage multiple clients' accounts from a single platform, addressing the need for scalable and secure IT solutions.

In just 18 months, Inforcer has raised three rounds totaling $110 million, with business growing 300% year-over-year. The company has doubled its valuation between its Series B and C, with co-founder and CEO Jamie Daum attributing this growth to the rapid evolution of cyber threats and AI.

To address these emerging challenges, Inforcer has invested in product development, including Shadow AI detection and a threat detection and response tool. These solutions aim to help organizations detect unauthorized AI tools and cybersecurity risks in real-time.

Cybersecurity has become a pressing concern, with attacks now taking minutes to execute rather than months to plan. Co-founder and chief community officer William Connor notes that attackers are using AI to analyze targets and craft convincing phishing emails.

"For SMBs, that means facing threats that are more automated, more scalable and harder to defend against than we've ever seen before," Daum added.

Inforcer is planning to expand further in the US, with a new per-user pricing model that aligns with how MSPs sell tools to their customers. The company remains focused on the Microsoft suite, citing Microsoft's historical focus on larger enterprises and leaving room for specialized vendors to serve smaller customers.

"We see ourselves as complementary to Microsoft rather than competing with them," Connor said.

Other investors in Inforcer include Dawn Capital and Meritech Capital.

Inforcer's growing traction in the market demonstrates the increasing need for MSPs to manage complex IT environments, particularly with the rise of AI and security threats. As the company continues to develop its solutions, it remains to be seen how Inforcer will adapt to the evolving landscape of cybersecurity and AI.