From Local Champions to Global Innovators: Shaping Europe's Cybersecurity Destiny Takes a Mindset Shift
What EU Talent and Startups Are Missing - A New Mindset
Hello Cyber Builders 🖖
Over the last few weeks, I have been sharing LinkedIn some views on the European cybersecurity market.
Europe must urgently change, proactively embracing technological advancements to lead in cybersecurity. The strength of ecosystems like those in Israel and California - which we can admire - lies in their talent and funding, but most importantly, in the ability to focus on what matters and when it matters most.
Contrary to most of the EU ecosystem, I don’t think Europe lacks VC financing. VC funding follows the innovation pace, and the speed and excellence of execution create long-term successes.
The true problem lies in our collective mindset, starting with the EU Cyber Builder’s mind.
We must adopt a first-mover approach to capitalize on our strengths—premier research labs, top-tier engineers, and a vast European market. It's time for entrepreneurs to boldly explore new technologies and use cases, creating innovative products and new companies to safeguard them.
Let’s dive into these issues.
In This Post:
The Cybersecurity Conundrum: Unpack the complexities of cybercrime's impact on Europe and the global economy, highlighting the urgent need for a robust defense strategy.
Europe Reacts - A Positive Sign, Still Too Limited: Discover the rise of European cybersecurity startups and the critical shift needed from local success stories to global innovation leaders.
A Call to Action: Explore actionable insights for changing the European cybersecurity mindset, fostering international business, and driving the region to the forefront of global cybersecurity solutions.
The Unseen Battlefront: Cybersecurity in the Heart of Europe
In an era where digital frontiers define the new battlegrounds, Europe is at a crucial juncture. The adversaries in this shadow war are cybercriminals.
These entities do not discriminate in their targets, ranging from individuals to sprawling corporations and even institutions designed to protect us. The theft of personal identities, financial information, and the crippling ransom demands on public institutions are not merely crimes; they are blatant attacks on our way of life.
The Invisible Economy of Cybercrime - 10 Trillion Euros in 2024
The cybercrime economy thrives in the shadows, elusive and difficult to quantify. Its impact, however, reverberates across continents, affecting millions. The forecast by Microsoft, suggesting a global cybercrime economy of €10 trillion by 2024, is a wake-up call. When juxtaposed with the GDP of Europe 27 at €19 trillion, the scale of this underground economy is alarming.
We must react now. We must innovate and create more solutions. There is an urgency for civil society, security specialists, engineers, and entrepreneurs to work harder to develop cybersecurity solutions.
Europe Reacts: A Positive Sign, Still Too Limited
In the face of this growing menace, Europe is not standing idle.
For ten years, there has been a clear boom in cybersecurity entrepreneurship. The surge in startups, particularly in France, with 165 entities raising €341 million in 2023, signals it.
Yet, despite these encouraging signs, the magnitude of the threat demands an even more robust response. Other countries have already reacted, and Europe is still lagging behind different ecosystems.
The following European Investment Bank chart highlights it very well. It shows the amount raised by cybersecurity startups per stage (Seed, Series A, Series B, Series C) and per country (European Union, the UK, Israel, and the United States).
I am particularly impressed by the median deal size for Seed startups (e.g., very early-stage companies with less than ten employees, led by two or three founders).
It is a good read. Check out the full report here.
Rewriting the Narrative: Europe's Potential
Cybersecurity trends often follow new IT developments. For instance, the arrival of Generative AI will accelerate the need for responsible and secure AI tools, and Generative AI will undoubtedly be used to create new and more threats.
I've been thinking much about what holds us back in European cybersecurity. Could it be as simple as changing our mindset?
Europe has a great resource pool of engineering talent, and this is especially true in the fields of cybersecurity, software, and AI. For example, the LLaMA paper from Facebook AI had over 15 authors and more than 10 European authors. This highlights the significant contributions that European engineers are making.
However, due to data sovereignty and confidentiality valid concerns, Europe's approach to emerging technologies, such as cloud computing, IoT, or AI, has been marked by caution (and regulations, but that’s another story). It led to a few cybersecurity startups being created to tackle new challenges.
This hesitancy contrasts with the more dynamic ecosystems in the US and Israel, where the focus is on timely innovation without getting bogged down in debates over the inherent value of each new trend. Funding follows the innovation pace, and the speed and excellence of execution create long-term successes. Consequently, Europe is usually seen as a buyer market rather than an ecosystem of innovators. US & Israeli startups seek customers after establishing themselves in the US.
Europe must urgently change, proactively embracing technological advancements to lead in cybersecurity. The strength of ecosystems like those in Israel and California lies in their talent and funding, but most importantly, in the ability to focus on what matters and when it matters most.
So, my fellow European entrepreneurs, how do we move forward? How do we change it? Do it yourself! Cease blaming our struggles on inadequate VC funding or poor public policies; these are merely outcomes, not the underlying issues.
Conclusion
As we stand at the crossroads of history, our chosen path will define the future of cybersecurity in Europe. The challenges are daunting, but Europe's collective talent, resources, and entrepreneurial spirit are more than capable of meeting them head-on. It's time for a bold reimagining of what Europe can achieve in cybersecurity, not just as participants but as global leaders.
This post begins a broader movement to galvanize the European cybersecurity ecosystem. Your insights, experiences, and ideas are invaluable to this journey. Follow Cyber Builders, contribute to the conversation, and let's shape a secure, innovative digital future for Europe together.
Laurent 💚