Inforcer Raises $50 Million to Help Smaller Businesses Tackle AI and Security Risks

London-based Inforcer has raised $50 million in Series C funding as growing cybersecurity threats and the rapid adoption of artificial intelligence increase the complexity of managing IT for small and medium-sized businesses.

The round, announced Thursday, was led by Insight Partners and highlights growing investor interest in companies that provide technology to managed service providers, or MSPs.

Many smaller businesses cannot justify the cost of maintaining their own internal IT departments and instead rely on MSPs to manage their technology. Inforcer provides software that allows those service providers to manage Microsoft 365 accounts for multiple small and medium-sized business customers from a single platform.

Demand for these services is increasing as AI adoption and cybersecurity risks make IT management more complicated. As more businesses turn to outside specialists, MSPs need infrastructure capable of managing larger numbers of customers while dealing with increasingly sophisticated security requirements.

Inforcer has raised $110 million in 18 months.

The Series C marksInforcer’ss third funding round in just 18 months, bringing the total raised across those rounds to $110 million.

Inforcer co-founder and CEO Jamie Daum said the company's business has been growing approximately 300% year-over-year. He also said the company’s valuation doubled between its Series B and Series C rounds, although he declined to disclose the company's current valuation.

According to Daum, the rapid pace of fundraising reflects how quickly both cybersecurity threats and AI technology are evolving.

Since launching in 2023, Inforcer has invested much of its funding in product development. That includes creating Shadow AI detection technology designed to identify when employees use unauthorized AI applications on company devices.

The company has also introduced a threat detection and response product intended to identify cybersecurity risks as they occur.

AI is changing cybersecurity threats for smaller businesses

Cybersecurity has become an increasingly important part of Inforcer's strategy.

Co-founder and chief community officer William Connor said cybersecurity threats that once required months of preparation can now be executed within minutes.

Attackers can analyse organisations and identify potential targets while relying on large language models to generate more convincing phishing messages and other social engineering attacks.

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

Connor said businesses also face risks beyond exwe’vel hackers, particu”arly around how corporate information is protected and how employees use AI systems and autonomous agents.

Those issues are becoming another area of security planning for Inforcer as companies increasingly introduce AI into everyday operations.

Inforcer plans further U.S. expansion.

The new funding will also support Inforcer's continued expansion in the United States.

As its product portfolio grows, Inforcer’s pricing is also changing. Its Microsoft 365 Manager product has traditionally been priced per client. Still, Inforcer’s newer threat detection offering is moving toward a per-user pricing model that structures more closely match the way MSPs sell cybersecurity products to their own customers.

The company's pricing could evolve further as AI becomes a larger part of its platform. company’s future AI products could potentially use consumption-based or token-based pricing.

Microsoft 365 remains Inforcer’s focus.

For now, Inforcer plans to remain focused on Microsoft’s ecosystem, really because Microsoft 365 continues to be widely used by medium-sized businesses.

The company also does not appear overly concerned about Microsoft eventually developing more competing tools itself.

Connor said Microsoft has historically concentrated on building platforms for larger enterprise customers, leaving opportunities for specialized technology to address the needs of smaller and more segmented businesses.

"We see ourselves as complementary to Microsoft rather than competing with them,” Co“nor said.

Alongside Insight Partners, Inforcer's investors include Daw Capital and Meritech Capital.

With AI creating new opportunities while simultaneously expanding cybersecurity and data-governance risks, Inforcer is betting that MSPs will become even more important to smaller businesses — and will need increasingly sophisticated software to manage those customers.