Business Name: Sign NDA to view listing at https://fih.com/listing/0327615
Business Start Date: 2015
Business Location: California, USA
Business Valuation: $6,695,000 USD
Business Model: SaaS, Revenue Sharing
Industry: Cybersecurity, Crypto Search Engine
Percentage Being Sold: 75%
Sales (TTM): $750,000
Net Profit (SDE): $337,500
Business Multiple (ARR or EBITDA): 8.67x
Tag Line: The business is a cutting-edge startup that specializes in developing homomorphic encryption technology for Private AI, enabling data utilization without privacy concerns

Executive Summary

Company Overview

The business is a U.S.-based technology company specializing in advanced data security solutions. Founded in 2015, the business has developed a groundbreaking Crypto Search Engine (CSE) technology that enables fully encrypted data to be searched, manipulated, and processed without decryption. The company’s innovative solution addresses critical cybersecurity needs across multiple industries, including healthcare, telecommunications, and financial services. With operations in Santa Clara, California, and Bologna, Italy, the business has positioned itself as a leader in encrypted data management.

The business 's innovative approach ensures the protection of sensitive information, addressing the growing concerns over cybersecurity breaches and data privacy violations. As businesses worldwide transition to cloud-based operations, the demand for robust security solutions like CSE is increasing rapidly. The business patented technology offers a scalable and secure solution that integrates seamlessly into existing IT infrastructures.

Key Metrics
Founded: 2015
Headquarters: Santa Clara, California, USA
Offices: Bologna, Italy
Current Revenue (2024): $750K
Projected Revenue (2025): $10M
EBITDA Margin: 52%
Clients: Major corporations in telecommunications, healthcare, and cloud services
Intellectual Property: Multiple patents in cryptographic processing and encryption technology
Funding: $1.8M in Angel and VC investments
Competitive Landscape: Positioned as a leader in the encrypted search and data security market

Business Model & Revenue Streams

The business generates revenue through a combination of fixed fees, SaaS recurring license fees, and revenue-sharing agreements. Key revenue streams include:

• SaaS Licensing: Annual licensing fees for CSE technology usage.
• Integration Fees: One-time payments from enterprise clients integrating CSE into their security systems.
• Revenue-Sharing Agreements: Partnerships with cloud providers and system integrators.
• New Applications: Expansion of CSE into blockchain, mesh networks, and cloud security.

Additionally, the business is exploring new revenue opportunities by integrating artificial intelligence (AI) and machine learning (ML) capabilities into its encryption technology. These enhancements will allow clients to leverage secure AI-driven analytics on encrypted datasets, further differentiating the business’s offerings from competitors.

Market Opportunity

The global cybersecurity market is expected to reach $248 billion by 2023, with the business’s core market, the Electronic Storage and File Synchronization and Sharing (EFSS) segment, projected to grow to $10.94 billion by 2023 at a CAGR of 27%. Increasing regulatory requirements, such as HIPAA and GDPR, are driving demand for secure data management solutions, providing a strong tailwind for the business’s growth.

With increasing concerns over data breaches, corporate espionage, and regulatory compliance, enterprises are investing heavily in advanced cybersecurity solutions. the business’s proprietary technology ensures compliance with international regulations while maintaining data privacy and security.

Products and Services

The business’s flagship product, the Crypto Search Engine (CSE), offers:

• Zero-Knowledge Encryption: Ensuring complete data privacy while enabling search and processing.
• Cloud Agnostic Compatibility: Integration with major cloud providers.
• Regulatory Compliance: Facilitates adherence to GDPR, HIPAA, and other data protection standards.
• Applications in Multiple Sectors: Secure data management for healthcare, financial services, and government institutions.

The business is also developing complementary security tools that extend CSE’s capabilities, including:

• Secure File Sharing: A peer-to-peer encrypted document collaboration system.
• Post-Quantum Cryptography Solutions: Future-proof encryption resistant to quantum computing threats.
• AI-Powered Anomaly Detection: Identifying and mitigating security threats in real time.

Competitive Advantage

The business differentiates itself from competitors through:

• Patented Technology: Proprietary encryption methods ensuring unmatched security.
• Faster Search and Processing: Unlike competitors, the business’s CSE allows encrypted data to be searched in real-time.
• Scalability: Solutions applicable across industries, from SMEs to large enterprises.
• Strong Partnerships: Collaborations with cloud providers, financial institutions, and enterprise clients.
• Advanced Compliance Standards: Meeting stringent global data privacy and security regulations.

Projected Financial Growth

The business is on a rapid growth trajectory, with revenue expected to reach $10M by 2025 due to:

• Expansion into blockchain and cloud security sectors.
• Increased enterprise adoption of CSE technology.
• Revenue growth from licensing agreements and partnerships.

Growth and Expansion Strategy

The business plans to drive growth through:

• Geographic Expansion: Strengthening presence in North America, Europe, and Asia-Pacific.
• Strategic Partnerships: Collaboration with cloud service providers and cybersecurity firms.
• New Product Development: Enhancing CSE for blockchain and AI-based data security.
• M&A Opportunities: Acquiring complementary technologies to broaden service offerings.
• Go-To-Market Strategy: Expanding sales channels through direct sales, resellers, and enterprise partnerships.

Investment Opportunity

The business is offering a 75% equity stake for $4.875 million. This investment will enable:

• Acceleration of product development and market penetration.
• Expansion of the sales and marketing team.
• Strengthening of strategic partnerships with cloud providers and enterprise clients.
• Enhancement of CSE with AI and machine learning capabilities.

Transaction Structure

Assets Included in the Sale

The 75% equity stake includes ownership of the following key assets:

• Proprietary Technology & Intellectual Property: All patents, trademarks, and copyrights related to the business’s Crypto Search Engine (CSE) technology.
• Software & Source Code: Complete access to the business’s encryption and data security software solutions, including AI and post-quantum cryptography enhancements.
• Customer & Partner Contracts: Existing agreements with cloud providers, enterprise clients, and strategic partners.
• Operational Infrastructure: The business’s existing technical infrastructure, servers, and development environments.
• Research & Development Portfolio: Ongoing and future projects in advanced encryption, AI security, and blockchain integration.
• Brand & Market Positioning: The business’s established brand identity, goodwill, and presence in the cybersecurity industry.

Valuation Basis: Projected revenue growth and competitive positioning

Due Diligence: Full access to financials, patents, and strategic roadmaps available upon request.

About the Agent

FIH.com is a Manhattan-based M&A advisory firm specializing in the sale of remotely-run successful digital companies (around the world) from $1M-100M in revenue, including apps, marketplaces, freemium + enterprise SaaS, ecommerce, affiliate/advertising groups, and more! We are proud to work with the very best entrepreneurs and investors, so if that’s you and you are in the market to acquire or sell a relevant business, then we encourage you to reach out for a complimentary consultation