Key UK CyberTech investment stats in 2023:
• UK CyberTech companies raised a combined $217m, a 55% drop from 2022
• UK CyberTech deal activity reached 61 transactions in 2023, a 9% increase from the previous year
• London was the most active CyberTech city in the UK with 32 deals, a 52% share of UK deals
In 2023, UK CyberTech companies witnessed a significant shift in their funding landscape, with $217 million raised in capital, marking a notable 55% decrease from 2022’s figures. Despite this dip in funding, the sector saw a surge in deal activity, with 61 funding rounds completed, indicating a 9% increase compared to the preceding year.
Netcraft, a cyber security defence company, had the largest UK CyberTech deal in 2023 after raising $100m in their latest private equity funding round, led by Spectrum Equity. The investment from Spectrum Equity will help accelerate the company’s strategic plans to drive growth and expand globally. Founded by Mike Prettejohn, Netcraft offers cybercrime detection and disruption services. With an advanced technology platform that enables the company to disrupt and take down cybercrime online in an automated manner, it’s become the world’s largest provider of takedowns which are delivered as a subscription service to financial institutions, governments, and corporations globally. The investment from Spectrum Equity will help accelerate the company’s strategic plans to drive growth and expand globally.
London remains the most active CyberTech region in the UK although the gap tightened in 2023 with London being home to 52% share of all deals, compared to 63% in 2022. Manchester was the second most active region with four deals. Overall, there is no threat to London’s crown but the findings may suggest talent and companies are moving out of London as UK cities like Manchester and Birmingham offer a 35% cheaper cost of living despite career concerns.
