Tech leaders urge UK to boost early-stage cyber security firms
A group of technology industry leaders and investors have urged the UK Government to take a more proactive role in boosting the country's cyber security sector. Sixty-six signatories, including founders, investors, and executives, are calling on policy makers to 'open doors' for early-stage companies and help secure the UK's ambitions to lead globally in cyber security.
Industry recommendations
The joint appeal makes four specific recommendations to improve the environment for cyber security startups. The first asks the Government to become a better customer and market maker. The signatories state that official procurement procedures currently favour large providers and block new entrants from working with the nation's most significant public and corporate organisations. They recommend that procurement rules be reformed to make it easier for start-ups in AI and cyber security to bid for government work and to expand their credentials for international contracts. The call also includes opening up government-backed cyber events and trust-building networks to smaller firms.
The letter also argues for targeted tax credits and incentives for larger British organisations to pilot and buy from domestic technology companies. This includes enhancements to R&D credits and capital gains tax relief for founders, as well as adopting models used in other markets such as the US and Israel to support early-stage innovation.
Building culture
The third set of proposals centres on changing attitudes towards commercial success and entrepreneurship. The group suggests that universities can play a larger role in creating and spinning out new technology businesses, and that the Government should sponsor the participation of promising companies in international trade missions and global events. Founders and their achievements, they say, should receive higher recognition and support to help them build international confidence and growth.
The fourth recommendation is to strengthen the UK's cyber ecosystem and global reach by building on existing initiatives such as the Strategic Defence Review and Joint Cyber Reserve Force. The signatories propose channelling the experience and investment of cyber founders and senior engineers with international track records into the support of the next generation of start-ups. They also seek to leverage government-backed cyber brands-such as those associated with the Ministry of Defence (MoD) and National Cyber Security Centre (NCSC)-to help companies win business overseas.
Public sector access
Alastair Paterson, Chief Executive and co-founder of Harmonic Security, said current procurement processes and closed networks risk shutting out the innovation the country needs to compete globally. He called for the public sector to become more open to smaller suppliers as a way of accelerating the translation of UK research and innovation into real-world impact.
"Britain builds brilliant technology. It's time our Government became its best customer," said Paterson, Chief Executive, Harmonic Security.
Signatories to the letter include representatives from capital investment, technology management, and start-ups active in the sector. They include Alexander Gunz, Fund Manager at Heptagon Capital; Fergus Hay, Founder and Chief Executive at the Hacking Games; Richard Yorke, Co-founder of Halceon; James Baker, Investment Manager at Amadeus Capital; Henry Mason, Partner at Dawn Capital; and Alex Bateman, Founder Managing Partner of Ambition Capital.
"We are not seeking 'handouts' from the Government, more that it uses its power and influence to 'open doors' and bridge the gap between early stage companies and leading public sector organisations / large enterprises," said Paterson.
