Key Takeaways
- • Osney Capital closed its debut cybersecurity fund at £60 million, exceeding its original £50 million target through oversubscription, positioning it as one of the UK's largest first-time seed funds focused exclusively on cyber startups.
- • The fund will deploy capital across approximately 30 portfolio companies at pre-seed and seed stages, with ticket sizes ranging from £250,000 to £2.5 million per investment.
- • Osney secured backing from the British Business Bank, East X Ventures, and US-based IronGate (a defence-focused fund of funds), and holds accreditation from the UK's National Security Strategic Investment Fund (NSSIF), indicating government security vetting and validated technical capabilities.
- • The fund capitalizes on strong market fundamentals: the UK cybersecurity industry generated £13 billion in revenue in the 12 months to March 2025, representing 12% year-on-year growth driven by rising cyber threats and regulatory requirements.
- • Osney's founding team brings relevant industry expertise: Joshua Walter was previously a director at NCC Group (a Manchester-based cybersecurity firm), while co-founders Paul Wilkes and Adam Cragg bring legal and academic leadership backgrounds respectively.
Summary
Osney Capital, a London-based venture capital firm, has closed its inaugural fund at £60 million following strong investor demand that exceeded the original £50 million target. The oversubscribed close underscores institutional appetite for specialized seed-stage cybersecurity investment vehicles in the UK market. The fund represents a significant institutional commitment to early-stage cyber innovation, marking one of the largest debut seed funds in the UK focused exclusively on cybersecurity startups.
The fund's deployment strategy centers on backing approximately 30 startups at the pre-seed and seed development stages, with individual cheque sizes between £250,000 and £2.5 million. This ticket-size range reflects a focused approach to early-stage investing while enabling meaningful pro-rata follow-on capacity as portfolio companies scale. Osney's capital providers include the British Business Bank, East X Ventures (a London-based investment group), and IronGate, a US-based defence-focused fund of funds. Critically, the fund holds accreditation under the UK's National Security Strategic Investment Fund (NSSIF), indicating that Osney has undergone rigorous government security vetting and demonstrated high-level technical capabilities—a competitive moat in the national security investment space.
The timing of Osney's debut aligns with accelerating cybersecurity market growth. According to UK government figures, the domestic cybersecurity industry generated £13 billion in revenue during the 12 months to March 2025, reflecting 12% year-on-year growth. This expansion has been driven by increasing sophistication in cyber attacks and mounting regulatory requirements imposed on businesses globally. Osney's founding partner Joshua Walter previously served as director at NCC Group, a Manchester-headquartered cybersecurity firm, providing the team with deep domain expertise. Co-founders Paul Wilkes and Adam Cragg contributed backgrounds in legal consulting and academic executive leadership respectively. The firm has already made early investments in UK-based cyber startups, including Sheffield-based Sitehop and Manchester-based ESProfiler, demonstrating active capital deployment ahead of the formal fund close.
The fund's deployment strategy centers on backing approximately 30 startups at the pre-seed and seed development stages, with individual cheque sizes between £250,000 and £2.5 million. This ticket-size range reflects a focused approach to early-stage investing while enabling meaningful pro-rata follow-on capacity as portfolio companies scale. Osney's capital providers include the British Business Bank, East X Ventures (a London-based investment group), and IronGate, a US-based defence-focused fund of funds. Critically, the fund holds accreditation under the UK's National Security Strategic Investment Fund (NSSIF), indicating that Osney has undergone rigorous government security vetting and demonstrated high-level technical capabilities—a competitive moat in the national security investment space.
The timing of Osney's debut aligns with accelerating cybersecurity market growth. According to UK government figures, the domestic cybersecurity industry generated £13 billion in revenue during the 12 months to March 2025, reflecting 12% year-on-year growth. This expansion has been driven by increasing sophistication in cyber attacks and mounting regulatory requirements imposed on businesses globally. Osney's founding partner Joshua Walter previously served as director at NCC Group, a Manchester-headquartered cybersecurity firm, providing the team with deep domain expertise. Co-founders Paul Wilkes and Adam Cragg contributed backgrounds in legal consulting and academic executive leadership respectively. The firm has already made early investments in UK-based cyber startups, including Sheffield-based Sitehop and Manchester-based ESProfiler, demonstrating active capital deployment ahead of the formal fund close.
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