FirstWave raises $2.85m to support growth aims

FirstWave Cloud Technology (FirstWave) has completed a $2.85 million capital raise to support growth initiatives, following a corporate restructure that delivered an operational cash flow-positive FY25.

The capital raise was cornerstoned by technology investor Roger Allen led by Red Leaf Securities.

The raise will fund the company’s shift to AI powered compliance management, one part of the three-pronged growth strategy that FirstWave presented to the market in its investment overview update today.

This includes the launch of NMIS Cloud with Telmex, representing a $15 million annual recurring revenue (ARR) opportunity with expansion potential across América Móvil subsidiaries; the monetisation of over 150,000 Open-AudIT user base, supported by the release of new AI compliance features, creating a $30 million ARR opportunity; and the expansion of global distribution channels through a newly signed relationship with AWS and Ingram Micro, providing reach into more than 170 countries and over 200,000 resellers.

Over the past 24 months, FirstWave has undergone what it describes as "significant transformation", including reducing operating expenditure through the aforementioned restructure that management projects show will deliver $5.5 million in annualised savings from October 2025 onwards (versus FY24), positioning the business to scale efficiently.

FirstWave also secured renewals and uplifts with key customers including Microsoft, Telmex, Claro, NASA, Macquarie Cloud, and Services Australia, as well as releasing new AI-powered compliance features into testing this month, with early adopter client rollout commencing in October.

The company also extended its agreement with Telstra for the provision of Information Security Manual (ISM)-compliant CyberCision software and services to several Federal Government agencies, as well as striking a partnership with Amazon Web Services and Corent Technology that will see its IT compliance and network management software deployed on the AWS Marketplace.