British Patient Capital, the venture capital subsidiary of UK government-owned British Business Bank, has announced it is pouring $50.8m (£40.6m) into venture capital firm Evolution Equity Partners.
Sheffield-based British Partner Capital is following up on a $35m investment into Evolution’s second fund in 2020 with a new injection into its third fund that is scouting British cyber security and enterprise software companies.
Christine Hockley, managing director at British Patient Capital, said: “Evolution Equity Partners’ cyber security specialism coupled with proven investment credentials positions them to successfully support the UK’s leading technology companies as they scale.
“We are delighted to invest in this fund, which aligns with our objective of supporting promising companies to access the long-term financing they need to fulfil their growth potential.”
Evolution is looking to take advantage of the UK as a hotspot for cyber security. It has already invested in tech companies such as Panaseer and Quantexa, which hit unicorn status last year, meaning it is valued at over $1bn.
Successful UK cyber security companies include Sophos and London-based Darktrace, which recently upgraded its revenue forecast.
Richard Seewald, founder and managing partner at Evolution Equity Partners, said: “We are thrilled to be partnering with British Patient Capital and NSSIF to support UK based cybersecurity companies with capital and to equip them with the knowledge, tools and strategy to drive performance and outcome in the global market.
“Cybersecurity is mission critical to the safety of UK based enterprise, government and consumers and with the current environment demonstrating the importance of next generation technology that defends and protects our society and way of life. We look forward to working with best of breed entrepreneurs and building European champions.”
The cyber security industry is currently in high demand due to a rise in attacks, especially on businesses and high-income charities. This has partly been driven by artificial intelligence (AI) which is making it easier for hackers to infiltrate systems and generate more realistic threats such as phishing emails.
Robert Greenwood, investment director at British Patient Capital, said: “Cyber security started as a niche subsector of technology. With wide adoption and advancement of technology, we have seen it evolve over the last twenty years as attack surfaces have expanded to become a key application across all sectors as businesses aim to protect themselves, their customers, and their product.
“This investment demonstrates the UK’s role in leading cyber security innovation and demonstrating its expertise within this valuable technology. We are delighted to commit to Evolution’s new Fund and support this rapidly growing sector that will provide vital services to all business sectors,” he added.