Sapien Cyber to be wound up

Perth cyber security startup Sapien Cyber will be wound up after no bids were received to restructure or recapitalise the business, now in the hands of liquidators.  

It comes after the startup, born from Edith Cowan University’s esteemed cyber security research institute, entered administration with Ankura Consulting taking control early last month. 

Sapien’s demise has been attributed to being unable to attract sufficient ongoing capital to fund the commercialisation of its technologies and a transition to profitability, according to the liquidator.

The cyber threat solution player is estimated to owe between $3.3 million and $3.7 million.

Based at ECU’s Joondalup campus, Sapien booked a $3.6 million loss in 2023 and a $2.17 million loss in 2022, according to its annual reports. 

But in last year's report the directors remained confident in the company's ability to remain solvent by raising further capital, achieving operations growth and improving gross margins.

Perth dealmakers John Poynton and Harry Karelis helped commercialise some of its intellectual property in partnership with ECU, which will now be up for sale.

When the dealmakers co-founded Sapien in 2016, under a different name, it was backed by shareholder and key client Woodside Energy and ECU.

Speaking last month, Mr Poynton said was highly reliant on key clients and that it had not won any federal or state government contracts.

Turnaround specialist David Bryant from Ankura Consulting told this masthead no proposals were received during the administration process.

“Unfortunately, no proposal to restructure or recapitalise Sapien by way of deed of company arrangement (or otherwise) was received,” he said.

“Accordingly, the only viable option available to creditors at the second meeting was for Sapien to be wound up.”

Mr Bryant said he was keen to hear from parties interested in buying assets.

“The liquidators will progress realisation of Sapien’s assets and remain keen to speak to parties with an interest in acquiring Sapien’s physical assets and intellectual property,” he said.

“They will also work with former employees and the Department of Employee and Workplace Relations to assist in the smooth processing of entitlement claims under the Fair Entitlement Guarantee and will progress their investigations and, where appropriate, pursue any potential liquidator recovery actions for the benefit of Sapien’s creditors.”