A 75 Million Dollar Upvote for Cyber in the Form of Darktrace as Europe's VC Scene Hots Up

Cyber Story

UK cybersecurity startup has raised $75m in a Series D round, valuing the company at $825m (double the valuation from its capital raise in the previous year, 2016). Darktrace was founded in Cambridge and is a mere four years old. Insight Venture Partners, a new funder for Darktrace, stepped in alongside existing investors Summit Partners, KKR and cybersecurity specialist investor TenEleven Ventures (based in Boston and Silicon Valley). Darktrace has 500 staff and $200m of contracts including customers like British Land and Metro Bank.

Wider VC World and IoT Still Strong

In the wider VC world, funding in Europe hit 6.4 billion euros in 2016, the highest level since 2007. Invest Europe (formerly known as the EVCA) reports that 10% of the funding comes from US institutional investor. Furthermore the size of venture capital funds is increasing, with 13 funds raising more than 100m euros in 2016. Samsung NEXT is also coming to Europe with a promise of 150mm USD focused on AI, IoT, AR and VR. Berlin-based Felix Petersen is the MD in Europe.

Metro Bank lists on LSE

Metro Bank, the first new high street bank in the UK for 100 years, has listed on the LSE with a market capitalisation of £1.6bn similar to that of CYBG which listed in the previous month.

Craig Donaldson, CEO, who studied at the University of Bradford, remarked that the first branch opened less than six years ago in London's Holborn.

Vernon Hill is the American business behind Metro Bank and author of "Fans not Customers".

He is often quoted in his views on regarding banks as being in the retail business, rather than the banking business, and is a critic of "shadow banking systems" (in other words, banks or financial intermediaries that operate outside of banking regulation).

National Australia Bank brings Challenger CYBG to the London Stock Market

The National Australia Bank brought CYBG to the LSE on 8 February 2016. The trading service for the stock is SETS, the London Stock Exchange's flagship order book. The CYBG will form part of the FTSE Banks segment with a market capitalization of £1.66 billion on listing. CYBG forms one of the UK's so-called "challenger banks".

The CEO of CYBG is David Duffy who joined in 2015. He was formerly CEO of Allied Irish Bank which has a close relationship with the Irish state.