The cybersecurity sector continues to face a critical challenge: a lack of funding and support for early-stage startups. This gap limits the development of innovative solutions that address growing cyber threats and stricter regulatory demands. UK-based venture capital firm Osney Capital is stepping up to solve this problem. By focusing on pre-seed and seed-stage investments, the firm is helping the next generation of cybersecurity companies take off—with not just capital, but also strategic guidance.
Osney Capital has now closed its inaugural fund, surpassing its £50 million target. It’s the UK’s first dedicated cybersecurity seed fund and will support the country’s most promising startups in this vital field. The fund has gained strong backing from both the public and private sectors. The British Business Bank provided foundational investment, and the fund has accreditation from the UK’s National Security Strategic Investment Fund (NSSIF). It also attracted global interest, with participation from IronGate Capital Advisors in the US, East X Ventures, and a network of high-profile UK cyber entrepreneurs and national security experts.
The timing couldn’t be more urgent. In 2025, the UK’s cybersecurity industry reached £13.2 billion in revenue, growing 12% over the previous year. This growth is being driven by increasingly sophisticated threats, more complex compliance rules, and the widespread adoption of AI. The country’s growing talent pool—bolstered by expanded university programs in cybersecurity and computer science—has only added momentum.
Still, early-stage innovation remains hard to support. The cybersecurity startup landscape is often decentralized and operates through closed networks. That makes it harder for generalist investors to find or assess high-potential teams. Osney Capital is filling that void. With its laser focus on cybersecurity, the firm offers tailored support, access to key industry networks, and the funding needed to scale.
Founded in 2024 by Adam Cragg, Josh Walter, and Paul Wilkes, Osney Capital is based in Witney, Oxfordshire. Its goal is to empower visionary founders with the tools, connections, and capital they need to build cutting-edge cybersecurity technologies. According to Partner Joshua Walter, the UK has a global advantage in cyber talent and innovation—yet it’s still underleveraged. With this fund, Osney aims to uncover and back the next generation of cyber leaders, helping them build products and companies that can stand on a global stage.
The fund’s investment thesis closely aligns with the UK government’s National Cyber Strategy. Osney plans to invest in key areas like AI-driven threat detection, quantum-resistant encryption, secure infrastructure for IoT and 5G, tools for GDPR and NIS2 compliance, and new platforms for handling ransomware and incident response—especially timely as ransomware attacks rose 37% in 2024.
Osney will invest between £250,000 and £2.5 million in each of 30 early-stage cybersecurity startups. The team also has the flexibility to follow on in later rounds, including Series A. Even before the official fund launch, Osney made early moves, backing several promising startups. These include MindGard, a Lancaster University spin-out focused on AI security testing; Sitehop, based in Sheffield, which provides hardware-enforced network protection; RevEng.AI, a London startup offering AI-powered binary analysis; and ESProfiler from Manchester, which helps CISOs optimise security tools and stack performance.
The launch of this fund has drawn attention from across the public and private sectors. Dame Fiona Murray, Vice-Chair of NATO’s Innovation Fund and a member of the UK Prime Minister’s Council for Science and Technology, emphasized that cybersecurity innovation is more than a business opportunity—it’s a matter of national competitiveness and digital sovereignty. She believes Osney’s work is crucial to securing the UK’s infrastructure and strengthening its leadership in science and tech.
Christine Hockley, Managing Director at the British Business Bank, echoed that sentiment. She stated the Bank’s commitment reflects a broader mission to help high-growth UK companies access long-term capital. Cyber resilience, she said, is central to the UK’s role as a responsible cyber power, and supporting Osney Capital ensures both national security and economic resilience.
With strong institutional support, experienced leadership, and a mission focused on security, innovation, and scale, Osney Capital is poised to become a major force in shaping the UK’s cybersecurity future. Its new fund offers early-stage founders not just investment, but the partnerships and expertise to build globally relevant solutions—filling a long-standing gap at the heart of one of the world’s most critical industries.
