Protexxa’s Claudette McGowan lands a $10M funding round — a milestone for Black women founders in Canada
Women Leaders21.08.2024
For Claudette McGowan, the mission behind Protexxa is deeply personal.
Her career trajectory — spanning roles from help desk manager to executive positions at major banks and institutions leading digital transformations — has uniquely positioned her to understand both the technical and human elements of cybersecurity.
However, her journey into cyber safety entrepreneurship began not from a place of technology, but a deep-seated desire to help people.
“If you look at my kindergarten report card, you’ll find this theme of always wanting to help others,” she joked. “I always say I’m kind of like an undercover nurse, and I can help heal people online. When it comes to our digital health and hygiene, there are many weaknesses and opportunities to help people become stronger.”
Enter Protexxa, a digital platform founded by McGowan, designed to address these vulnerabilities with speed and expertise. Founded in stealth mode in 2021, the company officially went public in 2022, aiming to tackle escalating digital security concerns.
The AI-driven platform can tell you in minutes how compromised your system is and, rather than leaving it up to the user to remedy the issue, it helps them both find and fix their cyber vulnerability.
“Instead of buying more firewalls and threat detection and prevention systems, why don’t we put more time into the people? That’s where the cybercriminals are putting their time, so we should be as well.”
A monumental moment for women in VC
And now, thanks to a recent successful venture capital funding round, McGowan and her team will be able to reach more users in need of digital security.
After raising a $5-million seed in 2022, Protexxa set a new record in Canada for the largest amount raised by a sole Black woman founder when McGowan closed a $10-million Series A round, putting her amongst the most successful VC-backed female founders in North America.
Navigating the venture capital world can present its own challenges, such as subtle biases that can influence funding decisions. Still, McGowan says the key to success is remaining focused on demonstrating your company’s value and being okay with rejection.
“I think resistance often comes from a lack of familiarity…. No one is saying, “I’m not investing because you’re Black,”’ she said, speaking to the challenges some minority founders face.
“Take a look at where they’ve invested before. Suppose this is a portfolio that has no women founders and no people of colour. In that case, it doesn’t mean that they won’t invest in you, but know that maybe they’re not looking in your spaces or are looking for other things.”
Despite those challenges, McGowan views diversity as a critical component of business success, regardless of what side of the negotiating table you’re on.
“However, I also think people who sit in spaces where they’re considered a minority or underprivileged or underrepresented don’t want the seat as a token. They want to know that they’re there for a reason,” she added. “When you’re intentional, have plans, goals, things that you want to do, then you’re going to see the wins.”
For other women founders looking to take their business to the next level, McGowan says tapping into your own network can be hugely beneficial. Often, entrepreneurs get tunnel vision when it comes to VC funding, but there are many other options worth exploring if you’re not ready for that pathway.
Angel investors, for example, can be a great source of support, as can seeking out friends and family.
As an investor herself — McGowan recently co-led the launch of the Phoenix Fire Fund and The Firehood, a multi-million-dollar women-focused angel fund and network for women in technology — she says the best thing other entrepreneurs can do is be steadfast in their vision, understand the landscape and who the client is, and find what makes you unique.
“If you don’t have that, it’s hard to imagine scaling up,” said McGowan. “Having done the market research and understanding the competitive landscape of what you’re trying to build and who it’s going to help, I think is really key.”
A people-first future
With growing momentum behind the business, Protexxa’s recent funding round is earmarked for accelerating the platform’s development, expanding marketing efforts, and enhancing operational efficiency.
The investment will also support Protexxa’s expansion into new markets and will amplify its presence beyond Canada. In a world where over 5.6 billion people are online, she added that cybersecurity is no longer a luxury but a necessity.
And, when McGowan thinks about the next five years, it’s not the technological advancements or new solutions that continue to ignite her passion, but the people.
“I just bring it back to helping and healing,” she said. “I think that’s my core mission and my purpose for being here. If I can help people prevent a bad day or a devastating loss of personal information, that’s the business I want to be in.”
