Inforcer raises $50M to arm MSPs against AI-driven threats

Inforcer, a London-based startup that builds management software for managed service providers, closed a $50 million Series C round led by Insight Partners. The company helps MSPs oversee Microsoft 365 environments for small and medium-sized businesses, a market segment increasingly exposed to AI-powered cyberattacks and Shadow AI risks.

This marks Inforcer's third round in 18 months, bringing total funding to $110 million. The company says revenue has grown 300% year-over-year, and its valuation doubled between the Series B and Series C, though CEO Jamie Daum declined to share the figure.

Why MSPs need better tooling now

The thesis is straightforward. Most SMBs cannot afford internal IT teams, so they hire MSPs. Those MSPs now manage hundreds of Microsoft 365 accounts across clients. The complexity has spiked: attackers use AI to identify vulnerabilities faster, and large language models help craft convincing phishing emails at scale.

"For SMBs, that means facing threats that are more automated, more scalable and harder to defend against than we've ever seen before," Daum told TechCrunch.

Co-founder William Connor added that attacks now "take minutes to execute rather than months to plan." Beyond external threats, companies also face internal governance gaps around unauthorized AI tool usage, a problem Inforcer addresses with its Shadow AI detection feature.

What Inforcer actually builds

Inforcer launched in 2023 with a core product called 365 Manager, which lets MSPs control all their clients' Microsoft 365 environments from one dashboard. Since then, the company has added two significant capabilities.

The first is Shadow AI detection, which flags when employees use unauthorized AI tools on company devices. The second is a threat detection and response tool designed to catch cybersecurity incidents in real time.

These additions reflect a broader shift. MSPs are no longer just managing licenses and user provisioning. They are becoming the de facto security operations center for clients who cannot staff one internally.

New products, new pricing

The expanded product line comes with a pricing change. The original 365 Manager charged per client. The new threat-detection tool shifts to per-user pricing, which better matches how MSPs bill their own customers.

Daum hinted at further evolution: "As we continue to move further into AI within our platform, some of our future products could also become consumption or token-based." That language suggests Inforcer may eventually charge based on AI processing volume, not just seat count.

The Microsoft question

The obvious risk: Microsoft could build all of this itself. Connor acknowledged the concern but argued Microsoft historically focuses on enterprise customers, leaving a gap for vendors serving smaller, segmented markets.

"We see ourselves as complementary to Microsoft rather than competing with them," Connor said. It is a common framing for startups building on top of platform giants. Whether it holds depends on how aggressively Microsoft pursues the SMB segment through its own partner programs.

For now, Inforcer is expanding its U.S. presence. Other investors in the round include Dawn Capital and Meritech Capital.

Source: Startups | TechCrunch / Dominic-Madori Davis