The cybersecurity sector faces a critical funding and support gap for early-stage startups, limiting their ability to develop innovative solutions for cyber threats and regulatory compliance. UK venture capital firm Osney Capital addresses this gap by providing pre-seed and seed-stage investments alongside strategic advice to help these startups grow and advance cybersecurity technologies.
Today, Osney Capital announced the closure of its inaugural fund, which is the UK’s first dedicated cybersecurity seed fund and has exceeded its £50 million target. The fund aims to invest in the UK’s most promising cybersecurity startups.
The fund secured a foundational investment from the British Business Bank and holds accreditation from the UK’s National Security Strategic Investment Fund (NSSIF). Additional backing comes from a consortium of institutional and private investors, including US-based IronGate Capital Advisors and East X Ventures. Several successful UK cyber entrepreneurs and senior cyber and national security figures have also invested.
Bridging the investment gap in the UK’s cybersecurity innovation
The UK cybersecurity industry reached £13.2bn in revenue in 2025, growing 12% year-over-year. This growth stems from increasingly complex cyber threats, heightened regulatory pressures, and rapid AI adoption. Meanwhile, sustained investment in UK universities and expanded specialist computer science and cybersecurity programs have strengthened the country’s talent pipeline, driving nationwide innovation.
The early-stage cybersecurity ecosystem’s decentralised and closed-network nature makes it difficult for generalist investors to access. This allows specialist seed investors like Osney Capital to provide early backing, tailored support, and capital to help companies scale and attract global investment.
Osney Capital was founded by Adam Cragg, Josh Walter and Paul Wilkes in 2024 and is headquartered in Witney, Oxfordshire. The firm aims to empower innovative founders as they navigate the cybersecurity landscape and advance digital security. Its mission is to unite and empower entrepreneurs, investors, and industry experts within the cybersecurity ecosystem, fostering portfolio company growth through funding, expertise, and strategic guidance.
Joshua Walter, Partner of Osney Capital, said: “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. 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.”
The fund aligns with broader national security priorities outlined in the 2022 National Cyber Strategy. By focusing on critical areas such as AI-driven threat detection, quantum-resistant encryption, hardware-enforced security for IoT/5G infrastructure, regulatory compliance tools for GDPR/NIS2, and incident response platforms addressing ransomware attacks (up 37% in 2024), Osney aims to strengthen both public institutions and private enterprises against emerging threats.
The firm focuses exclusively on pre-seed and seed-stage investments in UK-based cybersecurity startups aligned with key trends in artificial intelligence, cloud security, regulatory compliance, and incident response.
Behind Osney Capital: £250k to £2.5m seed funding for 30 promising cybersecurity startups
The team plans to invest in 30 portfolio companies at pre-seed and seed stages, with investments ranging from £250k to £2.5m, plus the ability to participate in Series A follow-on rounds. This distinct portfolio of companies performs well and has garnered further investments from some of the largest global venture capital firms.
Prior to the fund’s launch, the team invested in several early-stage UK cyber companies, including MindGard, a Lancaster University spin-off specialising in AI security testing; Sitehop, a Sheffield-based expert in hardware-enforced network security; RevEng.AI, a London-based company offering an AI-driven binary analysis platform; and ESProfiler, a Manchester-based platform optimising security tech for CISOs.
Dame Fiona Murray, DCMG CBE, who serves on the UK Prime Minister’s Council for Science and Technology and is Vice-Chair of the Board of Directors of the NATO Innovation Fund, said: “Science and technology are essential to national competitiveness and increasingly, our competitiveness is grounded in national security. Osney Capital’s fund is an opportunity for the UK to build on its strong advantage and excellence in cybersecurity.
“In times of global uncertainty, we must foster a safe, secure and trusted digital economy in the UK – across all our digital and physical infrastructure. This means investing in and promoting innovation in the UK’s cybersecurity ecosystem. The work of Osney Capital’s fund is a matter of national security, digital sovereignty, and economic leadership.”
Christine Hockley, Managing Director and Co-Head of Funds at the British Business Bank, said: “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. 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.”
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