Deal moves software firm closer to $1bn 'unicorn' status

Cloudsmith, a Belfast software company, has received a £50m investment led by two US venture capital firms.

It is the largest deal of this kind ever done by a Northern Ireland-based technology company and the investment will be used to increase hiring and accelerate software development. The company currently has 130 staff, mainly based in Belfast.

The size of the investment suggests Cloudsmith is on its way to "unicorn" status - a $1bn valuation.

"We're not quite a unicorn yet, but we're close," the firm's chief executive Glenn Weinstein said.

"Watch this space because Cloudsmith is clearly headed to that territory," he told BBC News NI.

The funding round was led by California-based TCV, whose notable investments include Facebook and Airbnb.

New York-based Insight Partners and other existing backers have also reinvested.

Cloudsmith was founded by Alan Carson and Lee Skillen who worked for the New York Stock Exchange technology operation in Belfast.

The firm's technology lets companies update and send software securely around their business using the cloud.

Managing this "software supply chain" is becoming increasingly complex as large amounts of software code is being generated by Artificial Intelligence (AI).

Cloudsmith and its investors see this as a major growth opportunity.

"We're never going back to hand-crafted software," Weinstein said.

"AI agents generate so much software, so fast, it's nearly impossible for humans to carefully review it all.

"Cloudsmith has the scale, and the broad view to protect enterprises against the new kinds of threats that AI-driven development introduces."

It is the third investment into Cloudsmith in recent years - what is known as a "Series C" round.

This is significant as it indicates that investors are convinced the company has moved beyond simply proving its products and has an opportunity to grow rapidly into a globally successful firm.

"Having led Cloudsmith's Series B and now its Series C, TCV is proud to deepen our partnership with a company we see as defining artifact management for the AI era," said Morgan Gerlak, Partner at TCV.

"As AI shapes the software supply chain, we believe Cloudsmith is uniquely positioned to become a platform enterprises rely on for compliance, control, and security at global scale."