UK CyberTech deals to grow in 2023

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Research highlight

UK CyberTech deal activity on track to grow 19% in 2023

UK CyberTech investment stats from 2019 – H1 2023:

? UK CyberTech deal activity reached 31 transactions in H1 2023, a 14% drop from H1 2022 ? However, UK CyberTech deal activity is on track to reach 62 deals if the current pace continues, a 19% increase YoY ? UK CyberTech investment reached $138m in H1 2023, a 54% drop from H1 2022

The UK’s CyberTech sector has seen a drop in both funding and investment during H1 2023 YoY despite being the third largest exporter of cyber security services globally in 2021. UK cyber security exports have grown from ￡4.2 billion in 2020 to ￡5 billion in 2021 (an increase of 20%) according to www.theglobalcity.uk. In the first half of 2023, the number of cyber technology deals in the UK amounted to 31, marking a 14% decline compared to the same period in 2022. UK CyberTech deal activity is poised to reach a total of 62 deals, reflecting a noteworthy 19% YoY increase. In the first half of 2023, UK CyberTech investments amounted to $138m, showing a significant decline of 54% compared to the same period in 2022.

Hack the box, a cybersecurity upskilling platform, had the largest CyberTech in the UK during H1 2023, raising $55m in their latest Series B funding round, led by The Carlyle Group. The company intends to use the funds to continue to invest in R&D, enhance its go-to-market function, and double down on ongoing international expansion with commercial traction in the US, Europe, and APAC. Founded by Haris Pylarinos, Hack The Box is an online cybersecurity platform that combines gamification with skill enhancement and talent assessment. This platform caters to individuals, businesses, government entities, and universities, offering them the opportunity to enhance their offensive and defensive security expertise. Since its inception in 2017, the company has successfully united a global community of over 1.7 million platform members. Additionally, it has developed a diverse portfolio comprising more than 1,500 enterprises, government agencies, and universities. These entities utilize Hack The Box's engaging learning environment to elevate their cybersecurity proficiency.

A report from the European Scrutiny Committee highlights concerns regarding the EU Cyber Resilience Act and its potential impact on UK businesses. This proposed Act intends to safeguard consumers and businesses from products lacking adequate security features, establishing mandatory cybersecurity standards for products with digital components and software applications. The report emphasizes that British companies exporting relevant goods and software to the EU will be subject to the Act's provisions. It also cautions that connected consumer devices, in particular, may encounter duplicative obligations due to the UK's existing cybersecurity legislation, specifically the Product Security and Telecommunications Infrastructure Act of 2022. This could result in increased costs for businesses. ?

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