Cavelo, a cybersecurity startup based in Kitchener-Waterloo, Ontario, has secured a $5-million seed extension round led by Inovia Capital, with a focus on enhancing sales, marketing, and product development. This all-equity funding mirrors a previous $5-million seed round led by Inovia nearly two years ago aimed at U.S. expansion. CEO James Mignacca expressed that Cavelo’s recent growth has been exceptional and noted that the American market remains a key focus. The company has adopted a “channel-first model,” working exclusively with managed service and security providers, which has accelerated its growth. Cavelo gained 50 new customers using its 2023 seed round proceeds, with 70% of its customers in the U.S. Despite market challenges, Cavelo continues to expand in the U.S., focused on attack surface management and risk reduction solutions. Founded in 2020, Cavelo offers a platform that helps companies identify and manage sensitive data. The recent funding will aid in developing automated remediation and AI-powered threat detection capabilities. Cavelo initially planned for a Series A round but now targets it as growth permits. The company serves various clients, including financial services firms, law firms like Chaitons and WeirFoulds, and the City of Guelph. Inovia principal Taha Mubashir praised Cavelo’s team for consistently delivering valuable solutions tailored to managed service providers.
