Osney Capital announced the final close of its debut fund at its £60 million hard cap. The fund was oversubscribed against its initial £50 million target and is one of the largest debut seed funds in UK history.
Osney Capital said the fund also cements its position as the UK’s first and only specialist cybersecurity seed fund.
The fund is focused on backing pre-seed and seed-stage UK cybersecurity founders across categories within the sector.
Osney Capital’s Fund I is anchored by the British Business Bank through the Enterprise Capital Funds program and is accredited by the UK’s National Security Strategic Investment Fund.
Investors joining the final close included Imperial College London’s Endowment and Planet First Partners, along with commitments from exited UK cybersecurity entrepreneurs and senior leaders from the cyber and national security communities.
The fund close comes as cybersecurity becomes increasingly important for governments and industries facing rising cyber threats and geopolitical tensions.
Osney said this environment is accelerating demand for sovereign cyber capabilities and creating a significant opportunity for UK cybersecurity companies.
Since its first close at more than £50 million, Osney has completed seven investments in early-stage UK cybersecurity companies at the pre-seed and seed stages.
The firm writes checks between £250,000 and £2.5 million and is targeting a portfolio of 30 companies.
Its investments to date span AI security, disinformation detection, and software supply chain protection.
Osney said its pace of deployment reflects its belief that the UK is producing world-class cybersecurity companies despite a longstanding shortage of specialist early-stage capital.
The firm said the UK benefits from a deep cybersecurity talent pool supported by leading universities, a growing pipeline of cyber graduates, and a strong national security community.
KEY QUOTES:
“Cyber security is an area of growing economic and strategic importance to the UK, with significant potential for home-grown innovations to become major commercial successes. Our investment in Osney Capital’s first fund will give us exposure to this opportunity through a highly experienced specialist team, supporting our Endowment’s objective of generating financial returns to support Imperial’s mission of science for humanity.”
John Anderson, Chief Investment Officer at Imperial College London
“Osney Capital brings the specialist focus required to strengthen the UK’s cyber ecosystem. The quality of their early investments highlights the depth of talent and innovation in this country, and NSSIF is proud to support the Osney team as they fund and scale world-class UK cyber technologies.”
Paloma McGuiness, CEO at National Security Strategic Investment Fund
“Reaching final close oversubscribed at our hard cap, in this fundraising environment, is the clearest possible signal that investors see what we see: the UK’s cyber sector is one of the most exciting early-stage opportunities globally, and it benefits enormously from specialist capital on the ground, supporting the formation of the next generation of global category winners from the UK.”
Joshua Walter, Founding Partner at Osney Capital
