A new £50m cybersecurity investment fund from VC firm Osney Capital featuring state backing has launched as firms come under pressure to bolster their cyber defences.
The fund, which has received investment from British Business Bank, will back 30 companies at the seed and pre-seed stage with cheques between £250,000 and £2.5m as well as follow-on investments up to Series A.
Cybersecurity has long been a popular sector for investment, with government figures reporting the UK sector generated £13.2bn in revenue since last year. But pressure from new legislation requiring IT firms to be better equipped amid rising threats of cyber attacks has further highlighted the significance of the sector.
“The UK’s cyber ecosystem is one of the country’s greatest untapped strengths. With world-class talent and the scale to produce the next generation of industry leaders, we have a unique opportunity to compete on the global stage,” said Osney Capital partner Joshua Walter.
“Our mission with this fund is to identify and back the next wave of UK cyber founders – providing them with the specialist capital they need to build globally significant companies, products and technologies.”
Joining British Business Bank in backing the fund is IronGate Capital Advisors and East X Ventures.
“We are pleased to make this commitment to Osney Capital’s Fund I, which aligns with our objective of supporting promising companies to access the long-term investment they need to fulfil their growth potential,” said Christine Hockley, managing director and co-head of funds at the British Business Bank.
“Cyber resilience lies at the heart of the UK’s role as a responsible cyber power. Our commitment to Osney Capital will capitalise on the strong investment opportunity offered by growing UK companies within the sector while also building the UK’s national resilience.”
Osney is a London-based VC and has previously backed cybersecurity startups MindGard, Sitehop, RevEng.AI and ESProfiler.
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