· Funding increased by 940% since the beginning of lockdown – compared to the same period last year, making cybersecurity the fastest growing start-up sector in the UK
· £496m raised by UK cybersec firms in the first half of 2020
· 44% increase in no. of cybersec start-ups in the past 2 years
· New cybersec business registered every week
Funding has increased by a staggering 940% for UK cybersecurity start-ups since the beginning of lockdown - with £496m being raised in the first half of 2020, almost outstripping the 2019 total of £521m.
Investors have been quick to put their money towards start-ups specialising in cyber risk management, as the pandemic forced CEO’s to look beyond just financial or regulatory risk.
The findings come from a new report by global recruiter Robert Walters and data provider VacancySoft – Cybersecurity: Building Business Resilience – which claims that business spending on cybersecurity will double to £136bn this year.
Darius Goodarzi, Principal - Information Security and IT Risk at Robert Walters, comments: “For years the UK has been building its reputation as a beacon of innovation and investment in cybersecurity. This year in particular cybersecurity start-ups have risen to become business heroes - from tools that alert users to security vulnerabilities, to those that spot fraudulent activity — these news firms and tools have taken an important role in protecting our ‘new world.”
According to the government's Cyber Security Sectoral Analysis 2020 there are 1,221 firms active within the UK providing cybersecurity products and services – a 44% increase in the last two years – indicating that a new cybersecurity business is registered every week within the UK. Of this, 90% of the sector consists of SMEs - with an associated estimated turnover of £2bn (24% of the sector’s revenues).
Ajay Hayre - Senior Consultant Technology at Robert Walters – comments:
“Historically IT security has represented only 5% of a company’s IT budget but due to remote working and transition to online or cloud-based solutions, cybersecurity has been thrust to the centre of business continuity plans – having proved its worth in enabling business objectives during lockdown.
“Not only will every company see the benefit of having this expertise in-house, but they will be looking externally for tools, services and advisors to help guarantee the future-proofing of their business by way of solid and robust cybersecurity provisions.”