Cyber flywheel aims to kick-start UK cyber security startups | Computer Weekly

"The aim of the cyber flywheel is to create a cyber security ecosystem that has enough momentum to carry on growing. He pointed to the startup culture elsewhere, such as cyber security hotspot Israel, where startups grow, get funding and then exit, leaving experienced founders who are able to back and support the next generation of startups."

"Where the UK struggles is in helping startups scale to become high-value companies that attract significant buyers or IPOs, according to Paterson. Over the past five years, only a handful cyber security startups have made exits with valuations of over £100m."

"We are almost hampered by having a mid-sized market where you can hang out for a while before you move to the US - and by the time you get there, Israel and the US are already well established."

The cyber flywheel initiative, led by Alastair Paterson, aims to create a thriving UK cyber security startup ecosystem. While the UK has skilled talent and innovative founders, it struggles to scale startups into high-value companies attracting major acquisitions or IPOs. The UK's mid-sized market allows startups to remain domestically too long before relocating to the US, by which time Israeli and American competitors are established. The initiative seeks to replicate Israel's model where successful founders mentor and fund subsequent generations. The UK government plans to convene CISOs, venture capitalists, and startups to address scaling challenges and accelerate growth.

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