Ajax Systems raised $10 million from Horizon Capital

Ukrainian manufacturer of professional security systems Ajax Systems raised $10 million from investment company Horizon Capital. The investor was a new fund Horizon Capital – Emerging Europe Growth Fund III, LP (EEGF III), the total size of which is $200 million. Horizon Capital received a minority stake.

Aleksandr Konotopskyi. Photo: Ajax Systems.

It is reported that the fund bought out a part of Ajax Systems share from the first investor, SMRK (the fund invested $1 million in 2015 and still remained the only investor of the company), as well as a part of the shares from the company management.

“We are honored to become partners with Aleksandr Konotopskyi, the talented founder of Ajax Systems and his impressive management team, and we look forward to working with them over the coming years for the success of the company. We were attracted by Aleksandr’s vision, exceptional results of the company, its innovative product line, and success in serving customers in Ukraine and in international markets,” comments Olena Kosharna, founder and CEO of Horizon Capital.

“Ajax Systems is growing at a very fast pace, with more than 70% of revenue coming from export sales in more than 75 countries, mainly the EU. We are happy that the core of our team is Ukrainian engineers and world-class developers, we are proud of the results of their work,” commented Aleksandr Konotopskyi, founder and director of Ajax Systems.

Andriy Dovzhenko, the managing partner of SMRK, noted in his commentary to AIN.UA that the fund made “a very successful exit from the partial sale of previously bought shares,” and the long-term goal is to bring Ajax Systems to the IPO:

“This agreement gives a strong and clear signal about investment opportunities in Ukraine, both for venture investors and for private equity funds. We hope that the example of Ajax Systems will encourage even more Ukrainian entrepreneurs to create new companies and achieve even greater success,” added Dovzhenko.

Recall, Ajax Systems was founded in 2011. Today, the company’s products are sold in more than 75 countries around the world. The company employs over 500 people, 20% of whom are in R&D. The company has 5 patents. Wireless security system Ajax Systems is one of the most high-tech in the world. According to the company, by January of this year, Ajax has already sold more than a million devices.

The Ajax Systems product line includes more than 20 devices for protecting the premises and surrounding areas, fire safety, flood protection, as well as devices for home automation equipment. Products are designed and manufactured in Ukraine.