A UK venture capital firm has announced the close of its debut fund that will focus on investing in cybersecurity startups. The initiative targets early-stage companies in the UK as the cybersecurity sector grows and attracts an increasing number of investors. Alongside established investors, the firm has drawn support from both public financial institutions and private investors, signaling positive market sentiment. New details and perspectives from related technological developments add further depth to the emerging investment landscape in this field.
UK Cybersecurity Seed Fund Launch
Investment and Growth Focus
Reports from various sources indicate that the fund has exceeded its original target of £50 million, reflecting strong confidence in the cybersecurity domain. Analysis from different media shows a parallel with earlier successful specialist funds, although this fund specifically targets the cyber sector. Increased university investments and enhanced educational programs in computer science have also been noted as significant contributors to the sector’s talent development.
The fund is managed by Osney Capital, led by founders Adam Cragg, Josh Walter, and Paul Wilkes, who bring extensive expertise in technical, commercial, and regulatory aspects of cybersecurity. The firm’s debut initiative aims to deploy capital between £250k and £2.5m per investment, with plans to support follow-on funding rounds. With the British Business Bank providing cornerstone investment and accreditation from the National Security Strategic Investment Fund, the fund is supported by institutional players including IronGate Capital Advisors and East X Ventures, as well as contributions from seasoned UK cyber entrepreneurs. Notably, the UK cybersecurity industry reached £13.2 billion in revenue in 2025.
The strategic approach is motivated by the increasing complexity of cyber threats, regulatory challenges, and the rapid adoption of advanced technologies. The fund will invest in roughly 30 portfolio companies at pre-seed and seed stages, reinforcing the ecosystem with tailored support. Prior investments have already been made in early-stage companies such as MindGard, a Lancaster University spin-out offering AI security testing, Sheffield-based Sitehop, and London’s RevEng.AI, an AI-powered platform for binary analysis.
“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.
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.”
“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.”
Market observers believe that the establishment of this specialist fund may help fill the gap in early-stage cybersecurity investments. Increased support from both public and private investors could further stimulate innovation within the UK. The initiative is set to complement ongoing academic and industrial efforts, potentially paving the way for the next generation of cybersecurity solutions while maintaining a competitive edge in the global market.
