Denmark-based cybersecurity startup Uniqkey has successfully raised €5.35 million in a new investment round led by Swedish venture capital firm BackingMinds, along with contributions from industry veterans and key angel investors. This fresh injection of capital is set to propel Uniqkey’s mission of enhancing cybersecurity for European companies, particularly small and medium-sized enterprises (SMEs), against the ever-increasing threats of cyber attacks and data theft.
In a world where digital threats are escalating at an alarming rate, the need for robust cybersecurity measures has never been more critical. By 2024, global losses due to cybercrime are expected to reach a staggering $9.5 trillion, a sharp rise from $3 trillion in 2015. European companies are particularly vulnerable, with German firms alone losing €205.9 billion to cyberattacks in 2023. The European Union as a whole faces similar risks, having lost €268 billion to cybercrime in 2018.
Rising geopolitical tensions, particularly between Russia, Ukraine, the US, and China, have further intensified the pressure on the EU to bolster its cybersecurity capabilities. Years of underinvestment in digital infrastructure have left Europe heavily reliant on foreign technologies, challenging its digital sovereignty. Startups like Uniqkey are now playing a pivotal role in reducing this dependence and securing Europe’s digital future.
Uniqkey’s strategic role
Uniqkey is committed to scaling its military-grade cybersecurity solution across Europe, with an ambitious goal of becoming a market leader in password management within three years. The company currently protects over 500 SMEs across the continent and has experienced 100% year-over-year growth over the past two years. With the new funding, Uniqkey aims to expand its reach to thousands of companies, strengthening their defenses against cyber threats.
Uniqkey’s CEO and Founder, Hakan Yagci, emphasizes the importance of the company’s approach: “Today, everybody’s got a mobile phone. Mobile phones have become an essential way we access our everyday life online. That is exactly why we’ve made the mobile phone central to Uniqkey’s security solution, and a big part of why we’re seeing great demand for our solution. In the same fashion as mobile apps have changed the way we send money instantly or access our bank accounts, Uniqkey will change the way we access systems internally within the company – easy, fast, and secure.”
Addressing the SME Security Gap
The European economy heavily relies on its 24.3 million SMEs, which make up 99.8% of all companies in the region. However, with over 12 million of these businesses lacking a cybersecurity plan, the entire economy is at risk. The impending NIS2 and DORA regulations will soon hold company directors and boards personally accountable for their cybersecurity measures, much like GDPR has transformed data privacy practices.
Uniqkey’s solution addresses a significant vulnerability in company defenses: poor password management. With 81% of data breaches resulting from weak or compromised passwords, Uniqkey’s encrypted password protection provides a robust defense mechanism. The company’s solution integrates seamlessly with mobile devices, requiring a mobile app for system logins, akin to local ID apps used for banking across Europe.
Investment and Vision
BackingMinds, known for investing in “blind spots”—overlooked areas with significant potential—sees Uniqkey as a standout opportunity in the cybersecurity sector. “With less than 1% of all founders in Cyber security being immigrants and with only 2% of all Cyber security startups coming from the Nordics, Uniqkey stands out as a hidden gem,” says Susanne Najafi, Founding Partner at BackingMinds. Her colleague, Sara Wimmercranz, adds, “After tracking 500+ cybersecurity startups across Europe, it was clear that Uniqkey stood out. We have been impressed by Hakan, the company’s management team, their technical expertise and are very happy to support them in their mission to protect Europe from the growing cyber threat.”
For Uniqkey, this investment is not just about scaling their business—it’s about safeguarding Europe’s digital future. As Simon Cederstråhle Hellstrøm-Melander, CMO of Uniqkey, puts it, “This new funding will help accelerate the way we scale our technology to thousands of companies across Europe in the coming years. Protecting SMEs is at the heart of what we do and hopefully we can play an important part in Europe’s rising cyber landscape.”
As Europe braces for a future where digital security is paramount, Uniqkey’s vision extends beyond password management. The company aims to become a digital security guard for employees, enhancing cybersecurity awareness and protecting businesses from the inside out.
Read the orginal article: https://www.eu-startups.com/2024/08/copenhagen-based-uniqkey-secures-e5-35-million-aiming-to-fortify-european-cybersecurity/
