Schroder Ventures Backs Swedish PKI Specialist

Schroder Ventures in October announced a $6.5 million (ecu 5.4 million) investment in iD2, a Swedish company specialising in Internet security software.

iD2, which is affiliated with Ericsson and operates out of Stockholm and London, has developed a complete set of tools and software products to enable secure identification on the Internet.

“Digital signatures” will be critical if e-commerce is to develop from a niche technology to a universally accepted means of conducting business. The e-commerce market is forecast to grow in value to between $20 billion and $30 billion in the next three years; industry experts estimate that the Public Key Infrastructure (PKI), smart card and digital certificate sectors addressed by iD2, will be worth $7 billion within the next five years.

Carl Parker of Schroder Ventures said the private equity group views iD2 as the potential European market leader in the Internet security sector.

The company, which was established in 1996, currently has clients in the banking, telecommunications and postal services industries throughout Europe and Asia.