Automated cybersecurity platform lands £250K growth funding

North East cybersecurity firm Melius CyberSafe has successfully raised an additional £250,000 in funding from the North East Venture Fund (NEVF), managed by Mercia Ventures and supported by the European Regional Development Fund. The investment signals continued confidence in the company’s mission to make robust cybersecurity accessible to Small and Medium-sized Enterprises (SMEs), a segment increasingly targeted by cybercriminals and often forming a critical part of the supply chain for larger financial institutions.

The Newcastle-based company’s CyberSafe platform offers continuous cybersecurity monitoring and automated penetration testing, aiming to provide big business security for SMEs. This latest capital injection will be channelled towards expanding market share, particularly following the launch of an enhanced version of its CyberSafe platform earlier this year. The platform was initially developed in 2022 with prior funding from Mercia and the NEVF. To date, Melius CyberSafe has raised a total of £1.6 million.

The system is designed to monitor a company’s IT network, website, and mobile applications around the clock. It automates the process of penetration testing by simulating cyber attacks to identify vulnerabilities, checking for over 200,000 known weaknesses, including weak passwords and unpatched devices. Furthermore, the platform assists businesses in achieving crucial accreditations like Cyber Essentials and CE+ by demonstrating that continuous monitoring practices are in place.

The funding arrives at a critical juncture, with cyber threats showing no signs of abating. Richard Brown, CEO of Melius CyberSafe, highlighted the urgency, stating, “The recent attacks on leading retailers should be a wake-up call for every company.”

He emphasised the platform’s role in this environment: “CyberSafe aims to make cybersecurity accessible for businesses of all sizes, enabling them to rapidly detect any threats and take swift action. We would like to thank Mercia and the NEVF for their support to help us develop the platform, bring it to market, and – with this latest funding round – to further expand our reach.”

Melius CyberSafe has demonstrated significant growth, nearly doubling its annual recurring revenue (ARR) to over £500,000 in the past twelve months. The company is on a trajectory to achieve £1 million in ARR in the upcoming year and has successfully onboarded several key distribution partners.

Ian Wilson, Fund Principal at Mercia Ventures, commented on the investment: “Mercia has in-depth experience in the cybersecurity sector, and we are proud to have played a key role in the success of Melius CyberSafe.”

He added, “Traditional cybersecurity is beyond the reach of many small firms due to the high cost, but CyberSafe helps to solve this problem by automating key processes. With businesses under attack from criminal gangs and hostile states, the need for it is arguably greater than ever.”

For the financial and fintech sectors, the rise of accessible and automated cybersecurity solutions for SMEs is particularly pertinent. Smaller businesses often represent a significant vector for cyber attacks within the broader financial ecosystem’s supply chain. Ensuring these entities have adequate defenses is crucial for the security posture of the entire sector. The Melius CyberSafe model, focusing on automation and affordability, addresses a key challenge for many organizations that may lack dedicated cybersecurity teams or extensive budgets, yet are integral to the operations of larger financial players in both the UK and the US.

This latest investment underscores the growing recognition of the cybersecurity challenges faced by SMEs and the market demand for innovative solutions that can help fortify this vital segment of the economy against an ever-evolving threat landscape.