European Cybersecurity Investment Platform
About the initiative
The European Cybersecurity Investment Platform (ECIP) is set to be a fund-of-funds mechanism proposed by ECSO as a response to the investment gap in the EU cybersecurity market. With a target size of at least €1 billion, the ECIP aims to strengthen the competitiveness of our cybersecurity market and overall European strategic autonomy.
Since 2016, ECSO has been working with major private investors, the European Investment Bank (EIB) and the European Commission, alerting on the need to increase investments allocated to cybersecurity. In 2020, the Letter of Intent outlining this proposal to the European Commission garnered the support of 49 prominent public and private stakeholders representing the European cybersecurity landscape.
Building upon ECSO’s initiative, the EIB European Investment Advisory Hub, at the official request of the ECSO-Member Basque Cybersecurity Centre, commenced a feasibility study in October 2021 to assess the market viability and potential structure of the ECIP. The study’s findings unequivocally confirmed the need for the creation of the ECIP. Discover in this page how ECSO continues working with the European cybersecurity ecosystem in concrete steps to establish the European Cybersecurity Investment Platform.
Objectives
- Strengthen European cybersecurity market to attract and retain top talent, develop critical competencies, and ensure the strategic positioning of European solutions by enhancing investments in European cybersecurity start-ups and SMEs.
- Support European start-ups to consolidate their operations, scale up, and expand their market presence by offering stronger growth-focused financing options, particularly for Series A+. The ECIP is an opportunity to fund late stage companies and create European champions.
- Strengthen venture capital capabilities by investing in the existing or emerging European funds specialised in cybersecurity.
- Create leverage effect and serve as an incentive among the LPs to invest bigger tickets into the funds by increasing trust in the cybersecurity market.
- Stimulate the emergence of new venture capital funds and investment initiatives specialising in cybersecurity by promoting and strengthening the cybersecurity segment.
- Support synergy creation in relevant R&D&I funding schemes across Europe.
Timeline
2016
Initial dialogue and first contacts from venture capitalists (VCs).
2017
Preliminary in-depth analysis of the situation of investments in Europe.
September: first meeting between ECSO and the European Investment Bank (EIB).
November: first matchmaking event between investors and startups in Tallinn
2018
January: first contact with the European Investment Bank and DG CNECT to present a possible scheme for a platform dedicated to investment in cybersecurity.
Organisation of matchmaking meetings with investors and VCs.
Initial presentation of the ECSO Market Radar – a mapping of the European cybersecurity providers
2020
September: first letter of intent sent to the European Commission, signed by ECSO and eight European private investors to build a cybersecurity investment platform.
November: second letter of intent sent to the European Commission.
2022
Publication of the feasibility study of the European Cybersecurity Investment Platform by the EIB Investment Advisory Hub in collaboration with the European Commission and ECSO. Press release.
2023
Launch of The Cyberhive EUROPE– the first-of-its-kind European marketplace cybersecurity solutions
First edition of the Invest4Cyber Networking Night in Berlin
First Investment Report
First edition of the ECSO Cyber Solution Days and ECSO Awards Finals
2024
The Cyberhive Matrix™: a standardised evaluation and visual overview of European cybersecurity solutions, essential for the European Cyber Investment Platform as it provides a trusted and expert-validated map of mature, Europe-ready cybersecurity solutions, to guide informed and strategic investments.
November: working meeting in Luxembourg at the European Investment Fund (EIF) premises.
The current situation
The European Union has an estimated venture capital gap in cybersecurity investments of approximately €1.75 billion every year.
The chance of scaling up for new European enterprises is only 0,5% (Source: Startup Europe Partnership study), difficulting the growth of companies beyond their initial markets.
The cybersecurity market is one of the fastest-growing markets in the world, led by the realisation of the vulnerabilities of the digital economy.
Because of the fragmentation of the European market, companies see their growth limited by the need of focusing on specific markets, resulting in fewer and smaller specialised investment.
European venture capital funds are smaller than in the U.S., which leads to focusing on seed/series A rounds over companies needing larger investments (over €10/15 million).
European expertise and knowledge tends to leave the European Union due to the high rate of acquistions by non-EU entities.
Source: Feasibility study of the European Cybersecurity Investment Platform by the EIB Investment Advisory Hub in collaboration with the European Commission and ECSO. Read here.
Concrete steps by ECSO
Market report, smes:
The data and knowledge gap in the European cybersecurity market, along with ECSO’s strategic role as an industry and expert association, and the presence of non-European data providers, has led ECSO to expand its market analysis efforts. This aims to support the growing market and its members with more in-depth information and data on investment trends.
Consequently, ECSO has been elaborating monthly, quarterly and yearly reports providing accurate and up-to-date information to support and promote the creation of the European Cybersecurity Investment Platform as the mechanism to address this gap and consequently securing European innovation and growth and fostering Europe’s strategic autonomy and digital resilience.
ECSO leans on its Invest4Cyber community to gather expert inputs on the data it gathers and The Cyberhive Europe to complement it.
The reports are delivered to ECSO Members each month to provide updated on the latest market dynamics. ECSO aims to offer a valuable resource that simplifies navigation through the complexities of the European cybersecurity sector. Instead of sifting through numerous sources, ECSO compiles the most relevant information to give its members a comprehensive snapshot of market developments.
Additionally, ECSO hosts quarterly webinars to discuss the contents of these reports and broader trends within the European cybersecurity market. ECSO Members are invited to participate and share their expertise during these sessions, creating a valuable opportunity for knowledge sharing.
These reports are tracking:
- the overall investment in cybersecurity;
- the number of M&As;
- the trends in the investment market in cybersecurity;
- a country-by-country analysis of this funding;
- the most active investors in cybersecurity;
- the number of investments;
- M&A by non-European investors and companies, among other data points.
Matchmaking Events & Invest4Cyber activities
With its direct engagement with the European private and public sector, ECSO has organised 40+ matchmaking events in 20 locations across Europe, in 16 countries, gathering 200+ entities. These matchmaking events, the Cyber Investor Days (CIDs), Cyber Solution Days (CSDs) and the ECSO Awards Finals, provide key insights, foster networking, and create business opportunities for the participants. They also celebrate European success stories through a competition, promoting local CID and CSD finalists. European winners receive the ECSO Startup Award and ECSO CISO Choice Award.
ECSO is at the heart of a dynamic community that unites the public and private sectors to drive innovation and investment in Europe. With a solid approach gained through years of experience in the organisation of these matchmaking events, ECSO built meaningful and well-established connections with local, national and international partners. The proven success of ECSO matchmaking events demonstrates strong support for the growth of European companies (from pre-seed to Series A, B, and C), private equity or venture capital investors, and CISOs seeking competitive European alternatives.
ECSO’s Invest4Cyber Initiative fosters collaboration among a diverse range of investors, general and limited partners, addressing the cybersecurity investment gap by showcasing solutions and enabling meaningful connections. The flagship event is the Invest4Cyber Networking Night in Berlin. With the expertise from its members, the Invest4Cyber Initiative supports all stages of development for startups and scaleups, from early stages to more advanced growth, thereby managing various investment risks and significantly contributing to the cybersecurity industry in Europe with the diversity of their expertise.
The Cyberhive EUROPE & The Cyberhive Matrix
The Cyberhive Europe is the first digital marketplace created exclusively with and for the European cybersecurity market. Our mission is to provide one stop-shop for cybersecurity solutions made in Europe and foster European cybersecurity communities and investment.
The Cyberhive is more than just a marketplace. The Cyberhive EUROPE is a community and movement embodying European excellence in cybersecurity, showcasing collaboration and a steadfast commitment to securing our digital future.
At the heart of this mission lies the Cyberhive Matrix™, an indispensable overview supporting end-users and investors when exploring European cybersecurity solutions. The Cyberhive Matrix™ is essential for the European Cyber Investment Platform as it provides a trusted, expert-validated overview of mature, Europe-ready cybersecurity solutions, guiding informed and strategic investments.
The Matrix is based on Cyberhive and open-source data, focusing on maturity and European readiness of the solutions during the assessment. ECSO, owner and initiator of Cyberhive, is an independent entity analysing and evaluating solutions.
The methodology is completely transparent and was constructed with the input of industry experts in a special Task Force. The Cyberhive Matrix™ consists of a half-year published report which will be disseminated in the beginning of February 2025.
The Cyberhive Europe is driving the creation of a secure, innovative, and digitally sovereign Europe, ensuring the continent takes charge of its cybersecurity future.
Initiative administration
Arnaud de Vibraye
Invest4Cyber Manager
arnaud.de.vibraye[at]ecs-org.eu
Francisco Andrade e Silva
Market and Regional Policies Manager
francisco.andrade[at]ecs-org.eu
