Ellerston, Bondi Partners in Internet 2.0 funding round

The cybersecurity outfit, with a number of US government agency contracts, is now valued at some $50m.

Robert Potter, chief executive of Internet 2.0. Picture: Rohan Thomson/Bloomberg

Internet 2.0, an early-stage cybersecurity company run by former US State Department and Australian Army intelligence officials, has raised more than $5m in a funding round led by Ellerston Capital and strategic advisory group Bondi Partners.

The raise, led by Ellerston and Bondi’s 1941 Fund, gives the company a valuation of around $50m, an increase from $12m at its last funding round last year.

As part of the funding deal, Bondi’s senior adviser Gus McLachlan, a 37-year veteran of the Australian Army who retired in 2018 as major general, will join the Internet 2.0 board.

He will be joined by Tom Kenyon, a former Labor minister in South Australia who founded the state’s Family First Party in 2021.

“Internet 2.0 has defied market dynamics to deliver a significant increase in value for shareholders,” said Mr Kenyon. “It speaks to the reality that cyber security is a critical and fast growing market. Internet 2.0 contributes to Australia’s outsizes leadership role in international cyber security.”

Internet 2.0, which counts 16 US government agencies as customers, also attracted investment from Fifth Estate Asset Management and other high net worth individuals, it said.

The company is run by Robert Potter, the former head of cyber operations at BAE Systems, and David Robinson, a retired Australian Army intelligence officer.

The 1941 Fund closed its fund raising in November, and said it was Australia’s first pure private investment play into national security.

Originally published as Ellerston, Bondi Partners in Internet 2.0 funding round