A £50 million cybersecurity investment fund, launched by London-based venture capital firm Osney Capital with backing from the British Business Bank, aims to bolster the UK’s digital defences by supporting early-stage startups.
Announced on April 7, 2025, the fund will provide seed and pre-seed investments to 30 companies, addressing growing pressure on firms to strengthen cybersecurity amid escalating cyber threats and stricter regulations.
So, what’s the deal? Why now? And what does this mean for the UK’s digital defenses? Let’s break it down, step by step.
Osney Capital, a firm started just last year by Adam Cragg, Joshua Walter, and Paul Wilkes, has hit the ground running with its first-ever fund. They’ve raised over £50 million (yep, they smashed their target!) to invest in 30 early-stage cybersecurity companies across the UK.
Osney’s plan is to hand out cheques between £250,000 and £2.5 million to help these companies grow, with the option to chip in more cash later, up to what’s called Series A funding.
It’s the UK’s first dedicated cybersecurity seed fund, meaning it’s laser-focused on companies building tech to keep us safe online. Think of it as a lifeline for innovators tackling everything from ransomware to sneaky AI-powered hacks.
And it’s not just Osney’s money on the table, big players like the British Business Bank, US-based IronGate Capital Advisors, and East X Ventures are in on the action, along with some heavy-hitting UK cyber entrepreneurs and national security experts.
Oh, and it’s got a stamp of approval from the National Security Strategic Investment Fund (NSSIF), which is a big deal when it comes to anything tied to keeping the country safe.
The UK’s cybersecurity sector is booming, it pulled in £13.2 billion in revenue in 2025 alone, up 12% from last year, according to government stats. That’s a lot of cash, and it’s no surprise why. Cybercrime is on the rise, and it’s getting nastier.
Ransomware attacks, where hackers lock up your data and demand a payout, jumped by 37% in 2024. That’s not just a headache for big companies; it’s a threat to hospitals, schools, and even your local council.
On top of that, new rules like the EU’s NIS2 directive and the UK’s own GDPR are pushing businesses to tighten up their digital security. It’s not optional anymore, it’s the law.
While the UK has some of the best tech talent around (thanks to top-notch university programs in places like Lancaster and Sheffield), the startups cooking up tomorrow’s solutions often struggle to get funding early on.
That’s where Osney steps in, bridging the gap with cash and know-how to help these companies grow from scrappy ideas into global players.
Joshua Walter, one of Osney’s partners, put it perfectly: “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 globally.”
He’s not wrong, think of companies like MindGard, a Lancaster University spin-off Osney’s already backed, which tests AI systems for security holes, or Sitehop, a Sheffield outfit making networks hacker-proof with hardware tricks. These are the kinds of innovations that could put the UK on the map.
Osney Capital isn’t new to this game. Before launching the fund, they’d already invested in a handful of UK cyber startups, MindGard, Sitehop, RevEng.AI (an AI-driven code-crunching tool out of London), and ESProfiler (a Manchester-based platform helping security chiefs sleep better at night).
This fund ties into the UK’s 2022 National Cyber Strategy, which basically says: “We need to be the best at this, or we’re in trouble.” The UK’s got the brains, universities churning out cyber whizzes, a growing startup scene, but it’s been tough for early-stage companies to get the cash they need.
General investors often shy away because cybersecurity is tricky and technical. Osney’s specialist approach changes that, giving these startups a fighting chance to grow and take on giants from the US or Israel, where cyber tech is already big business.
For now, all eyes are on Osney Capital and their 30 lucky startups. Will they crack the code to a safer digital future? Time will tell.
