TACKLING THE SOutH WEST CYBER SECURITY INVESTMENT GAP
Gloucestershire is home to the highest concentration of cybersecurity businesses outside London (Cheltenham Borough Council Gloucestershire cyber and digital industries economic impact study), yet the entire South West receives less than 1% of the UK’s cyber investment (DSIT Sectoral Analysis 2024). At a county level, the picture is even more stark. CyNam, a Gloucestershire-focused not-for-profit organisation driving growth and collaboration in the sector, has secured Innovate UK funding to address this critical investment gap through its Cyber Local initiative, co-funded by Department for Science, Innovation and Technology.
The Cyber Local project will lay the foundations for a specialised Angel Investor Network aimed at transforming the investment landscape for early-stage cybersecurity and security of emerging technology businesses in and around Gloucestershire.
UNPACKING THE INVESTMENT GAP
Despite Gloucestershire’s status as a cyber hub, funding has not kept pace with the region’s potential. Many existing funds and programmes focus on making startups ‘investment ready,’ but few explore the deeper systemic reasons for the lack of local investment from the perspective of potential investors. CyNam, with a consortium of partners, aims to address this issue by:
- Demystifying Cyber Investment: Educating prospective investors from outside the sector, enabling them to make informed decisions about investing in cybersecurity startups.
- Engaging Cyber Experts as Investors: Training high-net-worth individuals with cybersecurity expertise to become Angel investors, breaking down barriers to entry.
- Laying the Foundations for a Specialist Angel Network: Seeking to establish a network of informed investors with a focus on cybersecurity and emerging technologies, ensuring startups have access to the right type of early-stage capital.
BUILDING ON GLOUCESTERSHIRE’S CYBER STRENGTH
“Gloucestershire has long been a cornerstone of the UK’s cybersecurity sector, but the lack of investment in the region is holding us back,” said Hollie Wakefield, General Manager of CyNam. “With less than 1% of the UK’s cyber investment reaching the South West, scaling that down to a county level paints an even grimmer picture. Cyber Local will directly tackle this disparity by building a strong network of engaged and informed investors to unlock the potential of the incredible businesses we have here. It’s also about inspiring entrepreneurially curious individuals to take the leap into creating startups in this sector, giving them additional support and resources to turn their ideas into reality.”
WHY IT MATTERS
The UK cybersecurity sector continues to grow rapidly, with a 13% increase in revenue and significant job creation over the past year (DSIT Cyber Sectoral Analysis Report, May 2024). In addition, emerging technologies such as Artificial Intelligence and Quantum Computing, combined with an unstable geopolitical landscape, are driving demand for innovation in cybersecurity.
Gloucestershire, as a key player in this sector, must overcome its investment shortfall to help keep pace with the sector’s potential. By connecting local startups with knowledgeable investors, this project will ensure the region’s businesses have the access to investment they need to thrive.
COLLABORATIVE APPROACH
The initiative will leverage existing Angel Networks and foster collaborations, syndicating deals to amplify impact. Rather than competing with established networks, this project aims to complement them, driving investment into a traditionally underserved but high-potential sector.
GET INVOLVED
CyNam is calling on potential investors, entrepreneurs, and stakeholders to support this project and help build a more connected and prosperous future for Gloucestershire’s cybersecurity and emerging technology ecosystem.
For more information, please contact info@cynam.org.
ACKNOWLEDGMENTS
CyNam extends its gratitude to Barclays Eagle Labs and HCR Law for their support during the initial stages of this project. Their contributions have been instrumental in shaping the foundations of creating an Angel Investor Network, enabling us to take this important step toward closing the investment gap in Gloucestershire.
about innovate uk
Innovate UK, part of UK Research and Innovation, is creating a better future by inspiring, involving and investing in businesses developing life-changing innovations. We provide targeted sectors with expertise, facilities and funding to test, demonstrate and evolve their ideas, driving UK productivity and economic growth. Join our network and communities of innovators to realise the potential of your ideas and accelerate business growth. Innovate UK: inspiring business innovation.