Cybersecurity Index Annual Wrap-up

‍Axeleo Capital (AXC) publishes the tenth edition of its “Cybersecurity Index”, a quarterly review of the European Cybersecurity ecosystem that monitors the pace of investments and innovation in the sector.

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Quantitative Insights

In 2024, deal activity experienced a sharp contraction, with the number of closed deals dropping by 35% to 113, compared to 173 in 2023. Similarly, total funding saw a steep decline, falling 35% to €721 million, down from €1.115 billion the previous year. The gap widened notably in H1, as funding levels fell significantly below those of 2023. H2 followed the usual pattern of being weaker than H1, but funding levels remained close to H2 2023.

Key Highlights for 2024

1. UK leads, France grows‍

In 2024, the UK led with 35 deals and €155M raised, down from €412M and 50 deals in 2023. France, meanwhile, grew significantly, raising €203.5M (+142%) with 12 deals, up from 9 in 2023.

2. Top categories

At the top of the leaderboard, Cloud Security and Threat and Actor Intelligence each account for 12% of total deals, while AI/ML Security & Compliance completes the podium with 11%. Key deals in each category include:

• Cloud Security: Nebul (Seed - €20M), Inforcer (Series A - €17.8M), and Cubbit (Seed - €11.7M)‍
• Threat and Actor Intelligence: Filigran (Series B - €32.3M), BforeAI (Series A - €14M), and OnSecurity (Series A - €6.5M)‍
• AI/ML Security & Compliance: Formalize (Series A - €15M), Mindgard (Venture round - €7.5M), and Mindflow ( Seed - €5M)

3. The biggest rounds

Paris-based Zama secured €75M in a Series A round to advance privacy-preserving blockchain and AI technologies. Tines, headquartered in Dublin, followed with €46.7M raised in a Series B round to enhance security workflow management. Finally Netherlands-based Eye Security closed a €36M Series B to provide SMEs with an affordable all-in-one service protecting against industry-specific threats.

4. Room for Improvement in Diversity

Gender diversity saw a significant decline, with the proportion of deals involving at least one female founder dropping from 16% to just 5%. We hope to see more women entrepreneurs in cyber this year !

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Cybersecurity Index Q4 2024 - Key Insights

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Quantitative Insights 

In Q4, €175.8M was raised across 33 deals, reflecting the typical year-end rebound after a traditionally weak Q3, which saw €102.3M raised across just 15 deals. Q4 2024 continued the year’s pattern of lower funding levels, falling well short of Q4 2023, which saw €224.5M raised across 77 deals.‍

Key Highlights for Q4

1. UK Dominating in Deals vs France Shining in Funding

The United Kingdom maintained its leadership in deal activity, closing 12 rounds and raising €41.3M. Key deals included:

• Mindgard raised €7.5M to address emerging AI security risks and propel expansion into the U.S.
• Inforcer secured €17.7M in Series A funding to enhance its Microsoft 365 security platform.

France reaffirmed its position as a major cybersecurity hub, raising €57.3M through two major deals:

• Filigran secured €32.3M in Series B funding to further develop their open source cybersecurity products
• Stoïk raised €25M in Series B funding to expand its insurance and risk management solutions for SMEs.

2. Most active sectors in Q4

The most active sector was Cloud Security, accounting for 17% of the deals, highlighted by Inforcer’s €17.7M Series A funding. Following, the Threat & Actor Intelligence sector represented 13% of the deals, featuring Filigran (Series B - €32.3M) and Refute (Pre-Seed - €2.8M).‍

3. Early-Stage funding rebounds across Europe

Early-stage deals (Pre-seed and Seed) are back to usual levels, making up 76% this quarter. This is a sharp increase compared to Q3, which was dominated by later-stage rounds.

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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, Symbiotic Security, Yogosha (exit) and Alsid (exit).

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