A Manchester-based cybersecurity start-up has become the latest North West business to raise Northern Powerhouse Investment Fund II (NPIF II) funding, as it sets out to create up to 20 new cybersecurity jobs over the next 12 months.
Founded in Manchester in 2020, CloudGuard specialises in automation and AI-led cyber attack detection, protection and response services to help businesses proactively remove threats in real time.
CloudGuard raised the money from NPIF II – Praetura Equity Finance, which is managed by Praetura Ventures as part of the Northern Powerhouse Investment Fund, and will now use the multi-million pound backing to expand its Manchester-based hub. This includes increasing its workforce from 30 to 50 and strengthening AI research with Manchester universities.
The investment will also be used to grow the CloudGuard Cyber Academy, which will provide training and industry experience to talent of all ages and levels, including those seeking their first role in the industry or others who are looking to change careers.
Led by CEO Matt Lovell and CTO Javid Khan, the business provides SMEs and large enterprises from a wide range of sectors, including manufacturing, professional services and utilities, with highly responsive and adaptive cybersecurity services – enhancing both security and cost efficiency.
The news follows comments by the head of GCHQ’s National Cyber Security Centre, Dr Richard Horne, who warned that nationally significant incidents have risen by 50% compared to the same time last year, and urged for greater collaboration to strengthen cyber resilience.
Matt Lovell, co-founder and CEO at CloudGuard said: “Unfortunately for many businesses, the complexity and volume of cyber events is increasing every day. More effective use of Automation and AI is fundamental to enabling better detection, protection, response and resolution outcomes, but equally as threats continually evolve so to must our capabilities. Response time is critical to mitigating the impact of cyber events in any business, as well as improving business resilience. CloudGuard are striving to provide more cost-effective, more responsive resolution-based services for all businesses with leading security solutions from Microsoft and other partners. Manchester is our home. It’s such an amazing City, rapidly becoming one of the UK’s leading cyber hubs. We are thrilled with the Northern Powerhouse investment and plans to accelerate our business and talent.”
Michael Rees, Investment Manager at Praetura Ventures, said: “Manchester has grown to become a leading cybersecurity ecosystem over the last several years because of companies like CloudGuard and their commitment to developing and growing the next generation of cybersecurity specialists locally. Alongside Matt and Javid’s extensive domain expertise and experience, this commitment is what attracted us to invest and sums up why NPIF II is so important. The mission is to find and fund innovative businesses that are not only committed to their own growth but to the region’s growth as a whole – CloudGuard is one of those businesses and is doing exceptional work in its field.”
Sue Barnard, Senior Manager at British Business Bank, said: “The North West is continually proving that it is at the forefront of the cybersecurity industry in the UK, as demonstrated by this latest investment. Providing businesses with investment opportunities is a crucial tool in boosting the growth of the entire Northern economy, and as shown in this latest deal, a way to increase high-skilled job opportunities for people in the region as well.”
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
