Graphite Software has raised $8 million in a Series B financing. The oversubscribed round was led by investors from Beijing-based Zhongguancun Private Equity & Venture Capital Association. They were joined by Green Century Investment and Celtic House Venture Partners, which led the company’s $4.4 million Series A round in June 2013. Ottawa-based Graphite is the creator of Secure Spaces, an Android virtualization solution that enables user experiences while protecting privacy and security. The company, which recently opened an office in China, will use the funds raised to expand its team and accelerate growth in the mobile device market.
Graphite Software Closes Oversubscribed $8 Million Series B Financing Round
Investment Enables Graphite to Continue Rapid Growth in Mobile Device Market, Expanding Adoption of its Virtual Phone Technology
Ottawa, Canada – June 16, 2016 – Graphite Software, a leading mobile virtualization provider, announced the completion of an $8 million Series B round of funding. The round was led by investors from the Beijing-based Zhongguancun Private Equity & Venture Capital Association (ZVCA) and includes participation from Toronto-based strategic investor Green Century Investment and Series A lead investor Celtic House Venture Partners, one of Canada’s most active investors in technology and innovation.
In May, Graphite announced that its Secure Spaces™ Android virtualization platform had launched with Xiaomi’s MIUI 8 and would be deployed to over 150 million devices by year end. Xiaomi, the world’s fifth largest smartphone maker, sold more than 70 million phones in 2015 and has been recognized as one of the most innovative companies in the world. With offices in Ottawa, Sunnyvale and Beijing, Graphite will leverage the new funding to further accelerate the deployment of its virtual phone technology by Android mobile device OEMs worldwide.
“We are very pleased with the strong support shown by the ZVCA, Celtic House, Green Century and Invest Ottawa as we expand the deployment of our virtual phone technology in the Android mobile device market,” said Alec Main, CEO of Graphite Software. “The closing of the financing round demonstrates investor confidence in the market opportunity and our ability to execute. It will allow us to expand the Graphite team in both Ottawa and Beijing and accelerate growth as we capitalize on an enormous market opportunity.”
Invest Ottawa made the original introductions between ZVCA and Graphite, which culminated in the ZVCA, Graphite and Celtic House signing a financing deal in November 2015, as part of the Ottawa mayor’s economic trade mission to China.
“Graphite Software’s story is a great example of the success the Ottawa delegation had during the China Trade Mission in late 2015,” said Mayor Jim Watson. “Nestled within Ottawa’s technology hub, the company is a great ambassador for our thriving tech landscape, and I am confident that their growing international partnerships will ensure their continued success.”
“We invested in Graphite Software because we see the real value that their solution brings to the Chinese Android mobile device market,” said Jason Wang, President of the ZVCA. “We believe that Graphite has the technology, customer traction, and the team—both in Ottawa and their new Beijing office—that will enable it to achieve its strategic vision.”
“We are excited to welcome the ZVCA and Green Century as co-investors in Graphite Software,” said David Adderley, Partner at Celtic House. “Celtic House has been active in China for more than 10 years. We recognize the tremendous opportunities that the Chinese market represents for our portfolio companies in terms of technology, manufacturing, customer and investor partnerships.”
“Having backed the Graphite Software team from day one, we are very pleased with their progress in bringing their unique virtual phone technology to market,” said Brian Antonen, Partner at Celtic House. “With this latest round of funding in place, Graphite is well-positioned to deliver on market demand from OEMs, brand and content providers who want to provide fundamentally different user experiences to Android device customers.”
“We are delighted to welcome Graphite Software to our family of companies,” said Larry Liu, Principal at Green Century. “Graphite Software is building a strong team and technology providing great solutions to Android mobile platforms. We look forward to supporting and participating in their growth and success along with other investor partners,” stated Liu.
“One of the critical roles that Invest Ottawa plays on the global stage is the forging of strong relationships and international business networks that can help Ottawa companies grow and succeed,” said Blair Patacairk, Managing Director of Investment and Trade at Invest Ottawa. “We have worked with ZVCA to build a trusted relationship which ultimately led to this successful investment and represents a win for everyone involved.”
About Graphite Software’s Secure Spaces
Secure Spaces is an Android virtualization platform that enables multiple virtual devices or “Spaces” to co-exist on a single device – such as a Personal Space, a Kids Space, a Work Space and a Secure Banking Space. This addresses not only fundamental Android security and privacy issues but it also enables Spaces to provide different user experiences in terms of apps, wallpapers, launchers and unique Space security settings, which leads to new forms of app discovery and distribution. Like the material graphite, Secure Spaces is strong and lightweight – there is no impact in device performance compared to previous virtualization technologies. Secure Spaces will be deployed to over 100 million devices by the end of 2016. For more information, visit: www.graphitesoftware.com
About Celtic House Venture Partners
Since 1994, Celtic House Venture Partners has been one of Canada’s most active investors in technology and innovation. Capitalizing on its deep domain expertise, Celtic House has collaborated with management teams and repeat entrepreneurs to develop technology companies from the inception phase through to exit, generating more than 25 initial public offerings and successful acquisitions. Celtic House currently manages in excess of $425 million across three funds. For more information, visit www.celtic-house.com.
China Zhongguancun Private Equity & Venture Capital Association (ZVCA), – is a non-profit membership organization dedicated to promoting Private Equity and Venture Capital industry in China, with a strong focus on accelerating domestic and international deal activities. ZVCA is co-founded by 10 nationally renowned private equity investment companies based in Z-Park. Currently, ZVCA has nearly 1000 members from all over China, including Angels, VC Funds, PE Funds, Entrepreneurs, High-Worth-Individuals and finance professionals, with about 100bn RMB ($15bn) assets under management. For more information, visit: http://www.zvca.org/enlist-16.html
About Green Century Investment
Green Century Investment Ltd (GCI). is a Canadian private equity and venture capital investment company located in Toronto, Ontario. As a strategic investor, we fund growth opportunities where we can add value in technology and innovation, real estate and alternative energy assets. For more information, visit: www.greencenturyinvestment.com
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Photo courtesy of Celtic House Venture Partners