Wedge Networks

Primary ticker: Private
Company type: Series A funding
Primary business: Internet of Things, Cybersecurity, SaaS, AI/Machine Learning, Network Technologies, Autonomous Vehicles, Industrial Tech

Wedge is a cyber security software development and solutions provider for the cloud connected world. The company is head quartered in Calgary, Alberta Canada. Wedge’s Deep Content Inspection enables full network traffic visibility that permits the first application of artificial intelligence and use of deep learning at the network layer (previously only possible inside the network). Combined with patented Subsonic Scanning and Green Streaming technologies Wedges’s “Absolute Real Time Protection” suite of products executes detailed security scans in less than 100 milliseconds providing complex security solutions protecting the networks of enterprises and large organizations in real time. Our software defined orchestrated platform (awarded Gartner Cool Vendor 2016) combines Wedge’s proprietary technology with industry best of breed threat intelligence resulting in the industry’s most complete cyber security solution: Fast Accurate High Performance and Easily Scalable

Management Profile

Rob Fong – Chief Operating Officer & CFO
25 years capital markets, executive leadership, corporate governance and sales experience. Former senior executive for TMX Group in Western Canada leading the TSX Venture Exchange as Director of Listings and Director of Compliance & Disclosure.

What is your rationale for attending 121 Tech Investment?

Capital raise and strategic partnerships to open new markets in APAC and continue and accelerate scaling the company.

Wedge would like to meet investors with a focus on cyber security and Saas revenue models with an interest in AI and networks, looking to establish a mutually beneficial relationship by making an initial investment at an attractive valuation.

What recent news would you like to highlight to investors attending?

WEDGE is constantly innovating – More and Better ways to insert real-time threat prevention into cloud networks:
– Better interoperability with conventional security solutions to deal with transport layer security
– Broadened coverage of security protection for more data types and endpoint types
– Launched Intelligent Web Shield for large scale managed web security
– Introduced a MDR (managed detection and response) solution with EDR partners
– Deployed in commercial capacity real-time threat prevention for critical infrastructure such as IoT networks and Smart power grid

WEDGE currently has a sales pipeline of 100+ qualified companies valued at $20MM+. $2.7MM in successfully completed POCs and commitments.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Complete equity raise $3MM to $5MM to complete transition to scale up phase. Closing $1.5MM in new Saas bookings by end of H1/19 tracking $5.0MM with total full year bookings of $10.0MM+. Add sales team in N APAC.

6 Months:

Close $2.7MM in successfully completed POCs with Q3 Saas bookings target of $3.0MM. Execute on existing contract in MENA valued at $5.0MM. Tracking full year bookings of $10.0MM+. Execute large growth equity raise of $10MM to $15MM to launch into and scale the company to achieve 2020 bookings target of $20MM+. This raise could be pre-IPO as WEDGE is considering a listing on Nasdaq Capital Market or Toronto Stock Exchange. WEDGE will consider dual list with strategic APAC stock exchange. Add sales teams in NA and Europe.

12 Months:

Establish active markets in north APAC – Korea, Japan and/or HK. Potential public market listing. 2020 sales bookings tracking $20MM+. Sales pipeline of $30MM+.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Meeting growing demand for our product/services on a timely basis.

We are closing sales and executing on proof of concept trails as efficiently as possible and recycling all cashflow back into the business. Our strategic plan calls for the addition 3 sales teams (north APAC, North America and Europe) by the end of 2019; plus another 4 in 2020. Wedge is also focused on establishing strategic partnerships with MSP’s/MSSP’s/MDR’s worldwide leveraging their client relationships and expanding the emerging MDR market segment.

Wedge is currently raising strategic growth equity to expand our sales and support capabilities.

In a sentence, what do you think makes your company such a compelling investment?

Wedge is the only company that can detect and block new and custom malware at the NETWORK LAYER in REAL TIME. WEDGE’s Absolute Real Time Protection is game changing as it provides the ability to “Detect and Block” new malware before the threat has access to the network with no impact on network performance. Today’s approach of “detect and remediate” exposes networks to significant risk contributing to the expanding security gap.

SaaS bookings momentum growing at 300%+ CAGR YOY.

Expanding pipeline – moving from $20mm now to $30mm in late 2019.

Strong Conversion Rates – 70% of Proof of Concept trials turn into orders; 85% of all new booking/revenue is recurring SaaS.