Venture Capital Firm Launches £50M Cybersecurity Fund

Venture capital firm, Osney Capital, has announced the creation of its Fund I plan, which will focus on investing in early-stage cybersecurity start-ups in the UK.

With a £36 million ($46.5 million) commitment from the British Business Bank, the oversubscribed cybersecurity fund is expected to invest in around 30 businesses at the pre-seed and seed round, investing between £250,000 ($322,767) and £2.5 million ($1.9 million) in each firm.

According to Christine Hockley, Managing Director and Co-Head of Funds at the British Business Bank, this commitment to the Fund I deeply aligns with the Bank’s goal of providing support to UK businesses that show promise and growth potential.

“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,” explains Hockley.

Cheltenham-based Osney Capital, led by Adam Cragg, Josh Walter and Paul Wilkes, will also offer further investments in Series A rounds, using their extensive experience in early-stage investing, as well as cyber and national security expertise. Alongside the British Business Bank, IronGate Capital Advisors and East X Ventures are also joining the fund.

Mark Sims, Senior Director, Funds at the British Business Bank, agrees with Hockley and believes that while the UK may be a leader in cybersecurity innovation, there is a lack of funding for UK-based cyber firms, especially at the pre-seed and seed stage. Osney Capital has previously backed a number of firms in the cybersecurity sector, including MindGard and Sitehop.

“By committing to Osney Capital’s Fund I we are working to fill this equity gap, whilst backing businesses developing technologies to protect themselves, their customers and their products,” He added.

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