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UK cybersecurity startups surge as scaleups stay rare

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SOFIAH NICHOLE SALIVIO

News Editor

Wavestone has identified 155 new cybersecurity startups in the UK in 2026. Its annual survey found only nine scaleups in the sector.

The figures point to a sharp rise in company formation but limited progress from early-stage businesses into larger operations.

The consultancy’s 2026 UK Cybersecurity Startup Radar tracked 235 UK organisations across startups, scaleups and unicorns. It portrays a market generating new entrants at speed while struggling to turn that activity into a broader base of scaling businesses.

New company creation rose 252% from 44 startups identified a year earlier to 155 in 2026. Yet the number of scaleups remained at nine, underlining what the report describes as a weak conversion rate between startup formation and later-stage growth.

Regional shift

Much of the expansion came from outside the capital. More than 86% of the newly identified startups, or 134 out of 155, were based beyond London, compared with 52% the previous year, when 23 of 44 new startups were located outside the city.

The shift suggests cybersecurity entrepreneurship is becoming more geographically dispersed across the UK. It also reflects a broader pattern of regional technology clusters taking a larger share of new business formation.

London remains an important centre for the industry, but no longer dominates the flow of new entrants in the same way. A wider spread of startups could broaden access to talent and customers, though it also raises questions about whether local funding and support networks are strong enough to help firms grow.

Funding gap

The report also found a shift in the size of investment rounds. Funding below £2.5 million increased, with the strongest growth in rounds below £100,000, while investment above that level continued to fall from an already low base.

That matters because larger rounds often help young companies move from product development and early sales into sustained expansion. A market with more very small rounds but fewer larger cheques may support company creation without solving the challenge of scaling.

The findings point to a financing gap at the stage when startups need fresh capital to hire, expand sales and enter new markets. In sectors such as cybersecurity, where buyers can include governments and large companies with long procurement cycles, limited access to growth funding can slow the path from concept to meaningful revenue.

Sales pressure

Founders said generating prospects was their biggest challenge. About 38% cited it as the main hurdle ahead, making customer acquisition a more immediate concern than product development or technical execution.

The survey also found that 67% of organisations were already selling outside the UK. That suggests many cybersecurity startups are looking overseas early in their development, either to find larger markets or to offset constraints in domestic demand.

International sales can provide an important route to growth, but they can also stretch small teams still trying to establish themselves at home. Early cross-border expansion often requires extra spending on compliance, hiring and market knowledge, which may be harder if funding remains concentrated at the smallest end of the market.

AI adoption

Another notable shift was the growing use of artificial intelligence in cybersecurity products. The study found that 62% of the organisations now use AI in their offerings, up from 30% in 2025.

The increase shows how quickly AI has moved from a differentiator to a more common feature in the sector. For many startups, it is becoming part of product design rather than a separate line of research, especially in areas such as automation, detection and analysis.

Rising AI use also suggests competition among cybersecurity startups may be harder to sustain through technology claims alone. If most new entrants adopt similar tools, companies may need to stand out through execution, distribution and customer relationships rather than by simply adding AI to products.

Florian Pouchet, Partner and Head of Cybersecurity and Operational Resilience at Wavestone, said: “UK cybersecurity innovation is growing at record pace and increasingly outside of London. However, founders are struggling to identify prospects, and scaling remains rare, while growth capital continues to contract. If the UK wants to become a sovereign cybersecurity force, the domestic market needs to back the companies it is successfully producing.”

Overall, the study shows a cybersecurity sector with strong entrepreneurial momentum but a narrow path to maturity. With 235 organisations mapped across the market and only nine scaleups identified, the gap between startup creation and sustained growth remains one of the clearest findings in the data.



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New Banbury pottery cafe enjoys successful opening weekend

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Blossom Pottery Cafe opened on Friday, August 14 at 18 South Bar, bringing a new artistic opportunity to coffee, tea and cake lovers in the town.

Opening the cafe was a long-standing dream of owner Wendy, who began pottery as a personal hobby and gradually developed the idea of creating a space where people of all ages can enjoy the peaceful pass time.

Blossom Pottery Cafe BanburyPottery painting sessions of bisque fired pieces are hosted daily (Image: Blossom Pottery Cafe)

With every table full on opening weekend and dozens of beautiful pieces newly painted by guests, the owner said her ‘heart is so full’ to see the dream realised.

“So grateful to see so many of you coming to support us on our opening day,” she shared. “Thank you so much.”

Blossom Pottery Cafe BanburyOwner Wendy said her ‘heart is so full’ after the support shown during the opening weekend (Image: Blossom Pottery Cafe)

Wendy earlier said: “We’re incredibly excited to be opening Blossom Pottery Studio & Café and bringing something new to Banbury.

“We hope it becomes a place where people can take a break from their busy lives, enjoy being creative, and make lasting memories with family and friends.

Blossom Pottery Cafe BanburyCustomers who visited during the opening weekend got free cupcakes (Image: Blossom Pottery Cafe)

“The support we’ve received from the local community has been amazing, and we can’t wait to welcome everyone through our doors.”

As part of the grand opening, all customers who visited during the opening weekend or made a pottery painting booking within the next three months received a free cupcake from the cafe.

Blossom Pottery Cafe hosts family-friendly pottery painting sessions from 10am each day, with normal cafe opening hours 8am to 5pm.





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Apprentices say AI is reshaping tech skills demand

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Atos highlighted the views of three apprentices entering the technology industry, focusing on apprenticeships as a route into tech as artificial intelligence reshapes workplace skills.

All three work as First Line Service Desk Apprentices and described a jobs market in which technical knowledge alone is not enough. Alongside coding and troubleshooting, they said communication, customer service, problem-solving and adaptability have become central to early careers in IT.

Kyle Brady said he moved into an apprenticeship after studying physics, maths and computer science at A level, then spending time in temporary work, including as a forklift driver, while building his technical skills independently. The apprenticeship, he said, offered a way to gain workplace experience while continuing to learn.

His account points to a common hurdle for new entrants: gaining practical experience before securing a first role. Brady said that challenge shaped his view of what employers value in technology jobs.

“After completing my A levels in physics, maths and computer science, I knew I wanted a career in technology. I’ve always enjoyed solving problems and understanding how things work, but I found it difficult to get my foot in the door. I spent some time in temporary jobs, including as a forklift driver, while building my technical skills in my own time. When the opportunity to start an apprenticeship came along, it felt like the perfect way to gain real workplace experience while continuing to learn.

“One of the biggest things my apprenticeship has taught me is that a career in tech is about much more than technical knowledge. Working on the helpdesk has shown me how important communication, customer service and problem-solving are. Being the first point of contact for users has completely changed how I see the industry and helped me develop skills I never realised I’d need. The experience has also shown me how quickly technology is evolving, especially with AI becoming part of more workplaces. That means the ability to keep learning and adapting is becoming just as important as technical skills. My apprenticeship has helped me build that mindset while giving me hands-on experience with the realities of working in IT.

“It’s also opened up opportunities I wouldn’t have had otherwise. Learning about career paths in cybersecurity and data engineering has shown me the range of opportunities available and given me confidence about where my career could go next. I’d encourage anyone thinking about a career in technology to keep an open mind and not feel like university is the only route. Apprenticeships give you the chance to earn while you learn, develop practical skills from day one and build the confidence to adapt as technology continues to change. In an industry being transformed by AI, that real-world experience is invaluable,” Brady said.

Ryan Cresswell said he studied IT at college and games design at university before working in sales to strengthen his people skills. He later returned to technology, but said employers often wanted practical IT experience as well as qualifications.

His experience reflects a wider issue for people seeking entry-level technology roles. Employers often ask for evidence of workplace readiness even for junior positions, making apprenticeships one way to bridge the gap between education and employment.

“After studying IT at college and games design at university, I began working in sales to hone my people skills before returning to technology. One of the biggest challenges I faced while applying for jobs in tech was that employers liked my qualifications but wanted candidates with hands-on IT experience. That made it difficult to get my foot in the door.

“My apprenticeship has given me the opportunity to earn, learn and gain practical experience at the same time. It’s allowed me to develop my technical troubleshooting skills, but I’ve also learned a lot about communication, problem-solving and handling different types of people. My advice to anyone considering a career in tech is to explore the different paths available. In the past it felt like university was the only choice, but that’s no longer the case. Also, speak to people already working in the industry and stay curious. Apprenticeships are a great way to build skills, confidence and hands-on experience, whether working individually or in a team, while discovering what’s right for you. The most important thing is to keep learning and not be afraid to take a different path if the first one doesn’t work out,” Cresswell said.

Skills shift

Zainab Hussain said she chose an apprenticeship because it offered immediate workplace experience and a path into more senior roles without student debt. She said the role had helped her develop both technical and interpersonal skills, including troubleshooting problems and explaining complex concepts clearly.

Her comments underscore how apprenticeships are being framed by employers and trainees as an alternative to university for some digital roles. In this case, the appeal lies in earning while learning, building professional networks and gaining direct exposure to the daily demands of IT support.

“I’m naturally drawn to tech and have always been IT literate, so I knew it was the right path for me. It’s an industry that’s constantly evolving, and I wanted to be part of that. I chose an apprenticeship because it felt like the best way to gain real experience from day one, and it sets you up to move into higher roles faster than if you go to university. I also wanted to build a career in the industry without taking on student debt.

“My time at Atos so far has helped me develop both my soft and technical skills, such as how to troubleshoot problems and communicate complex concepts clearly. I’ve also had the chance to earn, learn and build my experience, all of which are helping prepare me for the next stage of my career. The apprenticeship path has given me valuable opportunities to network with co-workers from different career backgrounds and skill sets, which you wouldn’t get at uni. The workplace experience has been incredibly valuable, so if you’re interested in tech, I’d encourage you to go for an apprenticeship, explore every opportunity available and keep an open mind,” Hussain said.

Taken together, the three accounts point to a shift in the skills mix associated with junior technology roles. As AI tools become more common in workplaces, the apprentices said the ability to keep learning, work with users and adapt to changing systems is becoming as important as formal technical training.

All three also described apprenticeships as a practical answer to the experience barrier that can prevent candidates entering the sector. They framed the route as a way to gain income, training and exposure to real workplace problems at the same time, while opening paths into areas such as cybersecurity, data engineering and wider IT support.



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UK flight school collapsed into liquidation

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Liquidators have been instructed to wind down Go Fly Oxford, which provided lessons for commercial and private pilots licences.

Colin Wilson and Emma Mifsud, of Opus Restructuring & Insolvency, have been appointed as joint liquidators for Go Fly Oxford Ltd back in May 2025.

But new records filed by the liquidators have revealed an HMRC secondary preferential claim of £118,132.

Ten unsecured claims have been received by the liquidators totalling £60,314.

Further unsecured creditor claims estimated in the statement of affairs total £88,955, the published documents say.

(Image: Ed Nix)

Over the past year, liquidators say they investigated whether any recoveries could be made from directors or other parties, but concluded there were no further viable assets or claims.

Aircraft shown in the 2024 accounts at a book value of £238,181 had been sold before liquidation. The liquidators found the sales appeared to be at fair value and saw no basis for a claim over the transactions.

The aircraft sales happened about seven months before liquidation, outside the relevant period for a preference claim.

The aircraft were reportedly transferred to creditors and leased back so the company could continue trading.

A purchaser of a PA34-200 aircraft was said to owe £6,000. The liquidators received £4,980; the remaining £1,020 was treated as settled because the purchaser had paid a company liability instead.

Two employees were made redundant on 31 March 2025 and were given information to submit claims to the Redundancy Payments Service.

READ MORE: MOT centre and car shop collapses into administration

The flying school was based at Oxford Airport when it collapsed.

Its website, which has since been shut down, described the business: “At Go Fly Oxford we pride ourselves on offering a personal and tailored approach to pilot training.

“We know that people learn at different paces and in different ways, this makes catering for individual needs our main target.”

Oxford Airport’s main trade is pilot training. Flight schools at Oxford train pilots who go on to fly for more than 100 airlines in the UK and globally, including for British Airways.

Historically, the airport has been Europe’s foremost centre for professional pilot training with well over 40,000 students having started their careers there.

At one point, the airport’s runway was the busiest in the world with more than 235,000 movements a year (a take-off or landing) and up to 1,100 flights in a single day, its website says.

The business’ report says: “Over the course of 2025, the company will be complementing its Diamond DA40 fleet with a new fleet of Elixir aircraft, a safer and more efficient type of aircraft, which will provide a much reduced cost per flight hour.

“This, along with growth in enrolments and full utilisation of the European base will ensure the profitability of the business in the coming years.”





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