Hot UK cyber startup Digital Shadows has raised $26m led by Zoopla backer Octopus Ventures

Lynsey Barber
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The growing threat of cyber crime is good for security startups (Source: Getty)

One of the UK's high-flying cyber security startups has attracted fresh funding from venture capital investors to fuel global expansion amid the growing threat to business of cyber crime.

Digital Shadows, which emerged from fintech hub Level39 in Canary Wharf and boasts the Bank of England among its client list, has raised $26m (£19.2m) in a series C round led by the backer of Zoopla and Swiftkey, Octopus Ventures, alongside World Innovation Lab and Industry Ventures.

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Previous investors have also joined the round, including Passion Capital, Trinity Ventures, Paladin Capital , Storm Ventures and TenEleven. The startup provides intelligence to companies on cyber security risks.

"This funding event is a huge milestone for Digital Shadows so we can expand our lead to offer the best digital risk management service in the industry," said co-founder and chief executive Alastair Paterson.

Passion Capital's Eileen Burbidge, a backer since seed stage, said: “Back in 2011, we first invested in Digital Shadows at its seed stage because we recognised that its tremendously capable founding team had a unique approach to digital risk management with high growth potential. It has since delivered on that promise by growing clients across Europe and successfully expanding into the US market. Taking the proposition to Asia is the next logical step."

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Digital Shadows is one of a handful of top cyber startups from the UK joining the government on a trade mission to Singapore this week to promote the sector post-Brexit.

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