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Home News

UK Government Backs Cyber Seed Fund

April 7, 2025
Reading Time: 2 mins read
in News
PQ-REACT Offers €650k for Quantum Solutions

The UK government has supported a new £50 million ($64 million) cybersecurity seed fund by contributing £36 million through the British Business Bank. This fund, managed by venture capital firm Osney Capital, aims to invest in early-stage cyber startups across the UK. Osney Capital plans to back 30 companies with investments ranging from £250,000 to £2.5 million, helping them grow from pre-seed to seed stages. The fund has already seen oversubscription, indicating the strong interest and excitement surrounding the UK’s cyber startup ecosystem.

The UK’s cybersecurity sector is rapidly growing, with total revenue reaching £13.2 billion last year and a 21% increase in its gross value added (GVA). Despite the impressive growth, the sector still faces challenges such as a shortage of technically skilled workers and rising salary demands. These issues, alongside intense competition from other businesses, have made it difficult for many startups to secure adequate funding. Osney Capital aims to address this gap by providing specialized capital to help early-stage firms scale and attract further global investment.

In addition to the financial backing, the UK government views cybersecurity as critical to national security, especially amid global uncertainty.

Fiona Murray, vice-chair of the NATO Innovation Fund, emphasized the importance of a safe and trusted digital economy. She argued that investing in the UK’s cybersecurity sector is not only essential for national security but also for maintaining the country’s competitiveness on the global stage. The launch of this seed fund reflects the government’s recognition of cybersecurity’s strategic value.

Osney Capital’s fund will play a crucial role in helping to establish the next generation of cybersecurity leaders in the UK. Joshua Walter, a partner at Osney Capital, highlighted that the UK has world-class talent and a unique opportunity to become a global leader in cybersecurity. By supporting innovative startups, the fund aims to produce globally significant companies and technologies, contributing to both the UK’s digital sovereignty and economic leadership.

Reference:

  • UK Government Backs £50m Cyber Seed Fund to Support Early-Stage Startups
Tags: April 2025Cyber NewsCyber News 2025Cyber threats
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