Cybersecurity Index | Q3-25
Cybersecurity Index Q3 2025 - Key Insights
Axeleo Capital (AXC) publishes the thirteenth edition of its “Cybersecurity Index”, a quarterly review of the European Cybersecurity ecosystem that monitors the pace of investments and innovation in the sector.
Quantitative Insights
The European cybersecurity sector demonstrated continued robustness in Q3 2025, securing €216 million across 36 deals. Despite amounts invested dropping ~45% compared to a record Q2, the number of deals remained stable with a higher proportion of early stage deals (64% vs 54%), underscoring the vitality of the innovation pipeline.
Zooming out, Q3 2025 marks the second most active quarter in the last twelve months, showing strong continuation from the previous quarter and making it significantly more dynamic than the €103 million raised in Q3 2024.
Key Highlights for Q3 2025
- Geographical breakdown: the UK still leading the way and Italy breaking through
While the United Kingdom remains the most active country by deal volume (13 deals, €76M), Italy surged to the top position in total funding, raising €81M across 3 deals, Exein (€70M mega-round), IdentifAI and Trustfull.
Germany also sustained its strong activity with 6 deals, including Kertos’ €14M Series A and Tangany’s €10M Series A.
Another notable region is the Netherlands (4 deals, €10M), while France had a much quieter quarter with a single €3M Seed deal (Nucleon Security).
- Cloud, Threat Intelligence, and Fraud Lead Sector Activity
Top funded categories in Q3 2025 were:
- Application Security (23.9% of deals)
- Threat & Actor Intelligence (18.5%)
- Privacy / Data Security (15.2%)
- Early-Stage Momentum Continues
Early-stage rounds (Pre-seed and Seed) made up 64% of total deals, with 9 Seed and 14 Pre-seed rounds completed this quarter.
- Top Deals of the Quarter
- Exein (IT) – €70M Series C
AI-powered embedded IoT security platform providing runtime protection directly within device firmware.
- Inforcer (UK) – €32.7M Series B
Multi-tenant management platform for MSPs that simplifies and automates Microsoft 365 operations, security, and productivity at scale
- Synthetized (UK) – €18.7M Series A
AI-native platform automating data provisioning to accelerate development cycles and minimize compliance risk.
- Kertos (GE) – €14M Series A
All-in-one GRC (Governance, Risk, and Compliance) platform automating compliance standards for businesses.
- Diversity Remains a Challenge
Only 3 deals involved at least one female founder (Naq, Geordie AI and TrustNXT), elevating the ratio to ~8% versus ~3% in previous quarters. This ratio, though on the rise, still reflects an ecosystem lacking structural diversity in founding teams, especially at later stages.
Exit Activity
Q3 recorded 7 exits, confirming the M&A momentum observed in Q2 and highlighting the European ecosystem’s growing maturity.
Acquisitions spanned core categories like Application Security (4 deals) and Data Security (2 deals), attracting both strategic European and international interest. Notably, Belgian acquirer Aikido was the key consolidator, completing three acquisitions in Application Security, including :
- CyberSafe (UK), data security startup acquired by Security Bridge (GE)
- Trag (AM), acquired at pre-seed stage by Aikido (BE)
- Onum (ES), acquired at Series A stage by CrowdStrike (US)
Methodology:
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).
