VC & PE Investment Trends: AI & Cyber set to drive market growth in 2025

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As we march into 2025, the VC & PE markets are treading the fine line between cautious optimism and strategic recalibration. Sure, VC funding has slightly cooled off from its previous sky-high levels, but the AI and cyber security sectors remain as hot as ever. Case in point: cyber security funding grew by a 43% in 2024, reaching a tidy ￡11+ billion (Crunchbase). Investors are doubling down on businesses that offer scalable, real-world solutions in AI-powered cyber security, cloud security, and zero-trust models. (So, it’s not just the stock market that’s seeing a bit of “security” action!)

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Then, there’s the Stargate $500 billion AI investment, which is probably the most exciting thing to happen since someone figured out how to use AI to make coffee. This investment will fuel the rapid growth of AI infrastructure, making it clear: AI isn’t just a buzzword—it's the future. For those not yet on board, it’s time to hitch your wagon to this AI train or risk being left at the station. PE firms are focusing on acquisitions and consolidation. But they’re not just snapping up anything that moves; they’re carefully eyeing businesses that can leverage cutting-edge technologies to generate long-term, stable growth. This is especially true in cyber security and enterprise IT, where innovation is happening at breakneck speed. If you're in this space, get ready for PE firms to start knocking on your door.

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Governments in the UK, US, EU & APAC regions are also stepping up their support for AI and cyber security innovations. Public-private partnerships are flourishing, aimed at building cyber resilience and boosting national security. It’s the kind of partnership that makes you think, “Wow, maybe we should all be playing in the same sandbox.” These efforts are creating a surge of new funding avenues, giving startups a unique chance to capitalise on the growing need for security and AI solutions.

The investment landscape isn’t just about chasing growth; it’s about delivering value and sustainability. Investors are now looking for startups that have scalable models, strong product-market fit, and can harness the power of macro trends like AI and cyber security. It’s not about “spraying” money around—targeted investments are the name of the game.

5 practical tips for startups seeking investment in 2025:

1. Focus on AI & Security – Create AI-powered cyber security solutions that tackle real-world threats like data breaches and threat detection. If you're in the business of saving people’s data from cybercriminals, trust me, investors are listening!
2. AI Readiness is Key – Don’t just talk the AI talk—show you’re AI-ready! Ensure your business can quickly evolve as AI technology advances. Need guidance on getting started? Look no further than the SECURE | CYBER CONNECT Community—whether you need AI expertise or someone to help you figure out how to not break the internet.
3. Be Clear About Real-World Applications – Investors don’t want another “cool” tech that never gets used. They want to know exactly how your product helps solve pressing problems. Whether you're improving operational efficiency or securing sensitive data, make it clear that your tech isn’t just fancy—it’s necessary.
4. Scalability is Crucial – Let’s be real—investors aren’t interested in a startup that’s a flash in the pan. They want to see a business that can grow without breaking. Make sure your business model is not only scalable, but also future-proof. Because, as we all know, growth without security is like driving a car without seatbelts.
5. Leverage Public-Private Partnerships – As governments worldwide pour money into AI and cyber security, startups should seek out public-private collaborations. These partnerships can give you the credibility, resources, and access you need to scale fast. Think of it like having a trusted friend who can introduce you to all the right people (but for cyber security).

Why collaboration is key

The 2025 investment environment is primed for startups that are AI-ready, scalable, and offering real-world solutions. If you can align with macroeconomic trends and focus on cyber resilience, your startup will be poised to thrive. As the market shifts towards value-driven growth, now is the perfect time to strategically position your business and attract the right investors. And if you need some support in navigating this AI-driven world, don’t hesitate to reach out to the community.

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As I am sure you would agree- collaboration is essential for ensuring its successful integration, professional networks like SECURE | CYBER CONNECT Community & Podcast, YorkshireX, DTX 360, Clarion Events, Cyber News Global InfoSec Europe, CyberUK, and groups such as CyBlack, Women in CyberSecurity (WiCyS), Join Momentum , ISACA Northern England Chapter, Cyber London , and Yorkshire Cyber Security Cluster offer platforms for exchanging insights. These groups foster an environment where cyber security advancements and mental well-being are prioritised, creating a balanced approach to both technological progress and a resilient, supportive workplace culture.

?Introducing Alex Hudelot and Paul Jackson

Alex Hudelot and Paul Jackson are the driving forces behind Theos Cyber, a leading cyber security firm delivering intelligence-driven solutions to businesses across the APAC region. Alex, the Co-Founder and Chief Security Officer, has over 15 years of expertise in cyber security, having held pivotal roles such as Chief Information Security Officer at a top cryptocurrency platform and Senior Solution Architect at BT Global Services, where he developed transformative security strategies. Paul, the Chief Executive Officer, brings over 30 years of experience in digital forensics, cyber investigations, and incident response, having held senior positions at Kroll, JPMorgan Chase, and the Hong Kong Police Force. Together, they lead Theos Cyber, helping businesses navigate complex cyber threats while maintaining a proactive and resilient security posture

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Introducing Theos Cyber

THEOS Cyber is a forward-thinking cyber security firm that focuses on providing cutting-edge solutions to help businesses defend against evolving threats. With a strong presence in the APAC region, their services include managed detection and response (MDR), incident response, and digital forensics, enabling organisations to strengthen their security posture and respond effectively to cyber incidents.

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Why This Episode is a Must-Watch & Value You’ll Gain

W discuss leadership strategies in high-pressure cyber security environments, including the mental resilience needed to make critical decisions during a crisis. We explore actionable topics such as how businesses can effectively defend against sophisticated threats like ransomware and advanced persistent threats (APTs), the benefits and challenges of integrating offensive security tactics with traditional defensive strategies, and how organisations can foster a strong cyber security culture. Additionally, the episode delves into how emerging technologies can impact cyber security leadership and the strategies cyber security start-ups can use to thrive in a competitive market. If you want to strengthen your organisation's defences and stay ahead of evolving cyber threats, this episode provides the tools and strategies you need.

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We trust you also find value in our earlier sessions, where we tackle:

Challenges with securing the automotive, connected & autonomous vehicles or startups? Check out: https://open.spotify.com/episode/1SIA1s8UbiBOLdubiajacR?si=4376da0b936a4f3b

Challenges with EU AI ACT, NIST, DORA or ISO 42001? Check out: https://open.spotify.com/episode/5siBwrRaoDMmeLLnidcrbf?si=MLFrBL6xSqWFbXVspRe1oA

?Challenges with Strategy, Effective Communication, Mental Health and Well-being in 2025? Check out: https://open.spotify.com/episode/5reL0EtSFZfD4mj445QJKI?si=lM1VGcgFTVGETXUYKxl81g

Challenges with SaaS Security, Cloud Migration and Regulatory change in 2025? Check out: https://open.spotify.com/episode/6xnZ9ly8UZdpAQxpsNxJg0?si=D90VMliNQnqkXBq6iMuX4A

Challenges with Data Privacy, GRC, IS9 27001 (22) or TISAX with the manufacturing and automotive space? Check out: https://open.spotify.com/episode/3c3QF6oqgoqT5LpaNFnqej?si=7XBA0mRuTMKja5My7nPd8Q

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A must read:

• https://www.dhirubhai.net/pulse/securing-future-global-cybersecurity-outlook-report-2025-atkinson-t2kke/?trackingId=5ZvdGJ%2F1TC2rDBDJtHy2fw%3D%3D

Reach out to Warren Atkinson, Justin (Jay) Adamson, Anna Khan or Sophie Edwards to explore how we can collaboratively navigate the complexities of AI, Information & Cyber Security to build a safer digital future. We look forward to welcoming you!

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