Kitchener-Waterloo-based cybersecurity startup Cavelo has raised a $5 million CAD seed extension round led by existing investor Inovia Capital.
The company plans to use the funds to scale sales and marketing efforts, accelerate product development, and strengthen its channel-first go-to-market strategy.
Serving MSPs and MSSPs with automated data protection
Founded in 2020, Cavelo offers a cybersecurity platform that helps organizations identify, classify, and protect sensitive data—from credit cards to passports—while simplifying compliance reporting and vulnerability management. The platform is designed for managed service providers (MSPs) and managed security service providers (MSSPs), which serve clients lacking in-house security resources.
Advertisement
Pivot to channel-first model fuels U.S. growth
CEO James Mignacca said Cavelo’s shift to working exclusively through MSP/MSSP partners has significantly boosted scale and reach. “By focusing on enablement and partner success, we’ve aligned our business model with the needs of the channel—and the response has been incredible,” he said.
Since its original seed round in 2023, Cavelo has added 50 new customers, 70% of which are in the U.S. market. The company now counts law firms, municipalities, and financial services providers among its clients.
AI-powered threat detection and remediation in development
Cavelo is using the new capital to expand its product with AI-driven threat detection and automated remediation features. Mignacca noted that demand for attack surface management and risk reduction solutions has remained strong in the U.S., despite broader market headwinds in 2025.
Series A on the horizon — but not urgent
Cavelo previously aimed to raise a Series A within two years of its last round, but Mignacca says strong growth has delayed that need. “We’ll raise a Series A when the time is right,” he said, hinting that the company remains on track toward that milestone without rushing it.
