Identity & Access Management,
Security Operations
PE Firm Acquires Majority Stake to Fuel Innovation in Certificate Lifecycle Management
In a strategic move aimed at addressing the growing demand for automation in identity management, Haveli has acquired a majority stake in AppViewX, a company specializing in certificate lifecycle management. This acquisition is led by the former CEO of Bromium, with plans to enhance AppViewX’s operations in managing non-human identities.
Based in Austin, Texas, Haveli’s investment in AppViewX aligns with emerging compliance standards and security challenges. Gregory Webb, the CEO of AppViewX, asserts that the company’s expansion is crucial for capturing new market opportunities. He emphasizes the importance of investing significantly in expanding their operations globally while maintaining established profitability.
Webb highlighted a pivotal moment for AppViewX, noting that the maturity of their products must match the increasing market demands. He stated that further investment is essential for establishing predictable revenue streams, particularly through scaling global operations, which Haveli has a reputation for supporting in enterprise software development.
Founded in 2008 and operating independently since 2016, AppViewX employs 542 individuals and has secured over $50 million in funding, including a $20 million Series B round in mid-2022. Webb has led the company since November 2019, having previously directed endpoint security startup Bromium, which was acquired by HP Inc.
The increased need for streamlined identity management and rising compliance requirements present a ripe opportunity for growth, as Webb notes. He emphasizes the necessity of finding a partner familiar with the industry, capable of understanding what it takes to scale enterprise software effectively and willing to make significant post-deal investments.
The funds from Haveli will be allocated for the recruitment of a seasoned Chief Revenue Officer to oversee the expansion of AppViewX’s sales teams. The company has ambitions to penetrate emerging markets in the Asia-Pacific region and strengthen its presence in the United Kingdom and Central Europe, while also establishing local salesforces in Latin America and the Middle East.
AppViewX’s certificate lifecycle management platform constitutes its primary revenue stream, with its SaaS capabilities poised for further enhancement. The firm is focusing on integrating non-human identity management, encompassing service accounts, API keys, and machine-based credentials into a unified identity management ecosystem, which Webb claims is essential for navigating increasing regulatory requirements for both human and machine identities.
The demand for lifecycle management tools is particularly driven by shortened certificate lifecycles from major tech entities, including Apple and Google. With less than 15% market penetration among target enterprises, Webb reports that AppViewX believes there is ample room for growth, standing competitively against rivals such as Keyfactor and Venafi in terms of automation and multi-tenant capabilities.
As AppViewX aims to maintain a 30% year-over-year growth rate and develop revenue predictably through better customer acquisition strategies, the company also seeks to uphold strong gross profit margins on its SaaS offerings. Webb is optimistic about the potential for significant growth in the sector, which he believes can accommodate multiple vendors reaching billion-dollar valuations in the future.
