April 9, 2016
Darktrace, a UK cyber security upstart that boasts links to GCHQ, is in talks with Silicon Valley investors to raise a war chest that would value it at $400m (£283m).
The funding round is expected to be finalised next month and would mean the company’s implied valuation has nearly quadrupled in less than a year. Negotiations are ongoing as to how much equity will be sold.
Sources close to the talks said Darktrace was seeking to top up its cash reserve in anticipation of a major downturn in technology venture capital funding.
Investors have piled money into start-ups at ambitious valuations in recent years. The herd of so-called technology unicorns – those valued at more than $1bn – is expected to face a brutal cull. A string of big names including the location app Foursquare and fitness gadget maker Jawbone have had to slash their valuations to raise cash.