London-based Inforcer announced Thursday a $50 million Series C funding round led by Insight Partners, underscoring growing investor appetite for startups solving a mundane but critical problem: most small businesses cannot afford an in-house IT department, so they outsource to managed service providers (MSPs). Inforcer builds software that MSPs use to manage all their small- and medium-size business (SMB) clients’ Microsoft 365 accounts from a single platform.
Inforcer’s rapid growth reflects heightened demand as AI and security threats make in-house IT management increasingly complex. More companies are turning to MSP experts, but this shift also requires MSPs to scale their infrastructure—not only to handle more clients but to keep pace with today’s sophisticated IT landscape.
Rapid Growth and Strategic Funding
In just 18 months, Inforcer has raised three rounds totaling $110 million. Business has grown 300% year-over-year, according to co-founder and CEO Jamie Daum. He told TechCrunch that the company doubled its valuation between its Series B and C rounds (though he declined to disclose the exact figure). The near back-to-back rounds were necessary, Daum explained, because cyber threats and AI continue to evolve rapidly—a trend that accelerated through 2025 and shows no signs of slowing in 2026.
Product Development Focus
Since its 2023 launch, Inforcer has invested heavily in product development. Key innovations include Shadow AI detection, which helps organizations identify when employees use unauthorized AI tools on company devices, and a threat detection and response tool that catches cybersecurity risks in real time.
Evolving Cybersecurity Landscape
Cybersecurity has become a major concern, said co-founder and chief community officer William Connor. “Attacks now take minutes to execute rather than months to plan,” he noted. Attackers use AI to analyze company vulnerabilities while leveraging large language models (LLMs) to craft more convincing phishing emails. “For SMBs, that means facing threats that are more automated, more scalable and harder to defend against than we’ve ever seen before,” Daum added.
Beyond external hackers, Connor highlighted internal risks: “There are also risks around how organizations govern and protect their company data, and how they govern the use of AI and agents within businesses. These are security concerns we are now planning around.”
U.S. Expansion and Pricing Evolution
Inforcer plans to expand further in the U.S. market. With new products comes a shift in business model: its original 365 Manager was priced per client, but the new threat-detection tool uses a per-user model that aligns better with how MSPs sell these tools. “As we continue to move further into AI within our platform, some of our future products could become consumption or token-based [pricing models],” Daum said.
Staying Focused on Microsoft Ecosystem
For now, Inforcer remains focused on the Microsoft suite, which is still widely used by SMBs. The company is not worried about Microsoft building competing tools. “Microsoft’s focus has historically been on creating platforms for larger enterprises,” Connor said, “leaving room for specialized vendors to serve smaller, more segmented customers. We see ourselves as complementary to Microsoft rather than competing with them.”