Axeleo Capital's 5th Edition of the "Cybersecurity Index"

Article Date
October 31, 2023

Axeleo Capital presents the fifth edition of its "Cybersecurity Index," offering a comprehensive overview of the European cybersecurity ecosystem's evolution and trends during the third quarter of 2023.

Quantitative Insights

In the third quarter of 2024, the European cybersecurity sector secured €128 million in funding, marking a 64% decrease from the previous quarter when total funding reached €354 million. Furthermore, this figure reflects a 31% drop compared to the same period in 2022 (Q3 2022), where the total funding amounted to €186 million.

Key Highlights for Q3

1. United Kingdom's Ascendancy

The United Kingdom has emerged as a dominant player in the European cybersecurity landscape, outshining France and Germany. The UK closed an impressive 15 deals, surpassing France with 5 deals and Germany with 4. During this period, cybersecurity startups based in the UK collectively raised €18.2 million, with Labrys Technologies securing a significant portion of this funding through a €5.2 million seed round. Labrys Technologies is dedicated to developing an integrated platform that streamlines team and program management for global remote networks, serving both the private and public sectors.

2. Booming Early-Stage Startups

In Q3 2023, early-stage startups (Pre-seed and Seed) accounted for a substantial 76% of the total deals, which is a slight decrease of 4% from the previous quarter but still represents the majority of total deals. Notably, Fraud0 successfully raised an impressive €6 million in its Seed Round. Fraud0 offers a software solution that provides advanced analytics and automated detection for non-human traffic, fraud, and advertising issues.

3. Most Active Sectors in Q3

The European cybersecurity landscape witnessed remarkable activity in Q3 2024, with significant investments spanning various sectors. Identity & Access Management (IAM) led the way, accounting for 20% of investments. This trend was exemplified by Rencore's successful Series B funding of €7.5 million. Rencore offers a comprehensive solution for the efficient management of Microsoft 365 services, enhancing cloud collaboration governance while addressing concerns related to cost-effectiveness, compliance, and security. Simultaneously, IoT & Hardware received 18% of investments, with Nu Quantum securing €2.3 million in funding. Nu Quantum is a quantum networking startup focused on the foundational technology required for scaling quantum computers.

Axeleo Capital's "Cybersecurity Index" for Q3 2023 underscores the dynamic nature of the European cybersecurity landscape and offers valuable insights into its progress and key players during this period.


The Cybersecurity Index is based on data from Axeleo Capital's analysis as well as databases, such as Crunchbase in particular. These data sources mainly gather information on deals and rounds that have been publicly disclosed - many other raises are taking place, but without announcements or communications on amounts (thus difficult to track). The analysis is limited to companies headquartered in Europe, and with a value proposition focused on Cybersecurity. As far as recorded fundraising is concerned, this refers to equity venture capital fundraising only (i.e. excluding debt fundraising, subsidies and aid other than equity).

About Axeleo Capital:

Axeleo Capital 2 is a €70 million venture capital fund dedicated to B2B Tech start-ups, including cybersecurity, across Europe. Axeleo Capital is a venture capital firm active on the European technology scene and backed by a large pool of entrepreneur-investors. The fund offers startup founders a unique support framework that combines equity investment, operational and strategic coaching, and an active ecosystem of over 100 high-level partners and mentors. Its Cybersecurity investments include Seedata, Trustpair, Citalid, Mantra, Yogosha (exit) and Alsid (exit).