UK private equity firm Maven Capital Partners invests in Blueskytec through the South-West Investment Fund.

As the cybersecurity landscape undergoes a shift, Maven Capital Partners has invested £1.5 million ($2 million) in Blueskytec, a cybersecurity hardware specialist, through the British Business Bank’s South-West Investment Fund.

Blueskytec has developed high-grade cybersecurity technology tailored for commercial applications within critical national infrastructure, the firm said in a statement. The company’s patented solution offers a different approach to cyber defence for mission critical systems, concentrating on defence, civil nuclear, and energy sectors.

As new regulatory standards emerge to enhance cyber resilience, Blueskytec provides a hardware-based layer of cyber protection which it says is unavailable with other solutions. Its technology has undergone extensive development and testing and is deployed across a number of industries and government bodies in the UK and US.

The South-West Investment Fund investment will be used to capitalise on the demand from national infrastructure providers as Blueskytec moves towards full-scale deployment with leading industrial partners. Funding will also be used to support recruitment as well as expanding its manufacturing capacity and business development efforts.

The cybersecurity landscape is undergoing a shift, driven by regulatory mandates and escalating threats from sophisticated attackers. With increasing cyber threats in industrial environments and traditional IT security, measures often fall short in addressing the unique challenges of operational technology. Blueskytec’s hardware-based solution is positioned to fill this gap, combining strong security with safety which integrates with existing infrastructures.

“Blueskytec has developed a cybersecurity solution that addresses a critical gap in the market, particularly for infrastructure and operational technology systems. Given the rapidly-expanding threat landscape and the regulatory imperative for enhanced cyber assurance, the addressable market for the company’s solution is large and growing,” Rafi Khan, investment manager at Maven, said.

“Cyber resilience is a critical priority for businesses and organisations across all sectors. Blueskytec is at the forefront of developing next-generation hardware security designed to protect sensitive infrastructure and we are delighted the South-West Investment Fund is able to support their growth ambitions,” Lizzy Upton, senior investment manager at British Business Bank, added.

The purpose of the South-West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunities for new and growing businesses across the South-West. It offers a range of commercial finance options with smaller loans from £25,000 to £100,000, debt finance from £100,000 to £2 million and equity investment up to £5 million.

The fund is increasing the supply and diversity of early-stage finance for South-West smaller businesses, providing funds to firms that might otherwise not receive investment and helping to break down barriers in access to finance.