Adrian Johnson
TLDR:
Uniqkey has raised €5.35 million to scale its cybersecurity solution across Europe, targeting SMEs that currently lack adequate cybersecurity measures. With impending regulations like NIS2 and DORA, companies are facing increased pressure to improve their IT security. Uniqkey offers a mobile-based solution that encrypts passwords and enhances security for employees, reducing the risk of data theft and cyber attacks. The investment was raised from BackingMinds and industry veterans.
Article:
Denmark-based Uniqkey has secured €5.35 million in funding to expand its cybersecurity solution throughout Europe, focusing on small and medium-sized enterprises (SMEs) that currently lack strong cybersecurity measures. With 24.3 million SMEs making up 99.8 percent of all companies in Europe, the potential threat of cyber attacks and data theft is significant, especially considering that 50 percent of SMEs do not have a cybersecurity plan in place.
Upcoming regulations like NIS2 and DORA are set to hold directors and boards personally responsible for inadequate IT security within the companies they represent. Similar to how GDPR transformed data processing practices, NIS2 is expected to revolutionize the approach to IT security. Uniqkey’s solution offers encrypted password protection for individual employees, leveraging mobile technology for secure access to company systems.
With 81 percent of data theft and cyber attacks attributed to poor password management, Uniqkey’s solution aims to address this vulnerability by eliminating the need for employees to remember passwords. By requiring a mobile app for system logins, similar to local ID apps used in banking, Uniqkey enhances security without sacrificing convenience or speed. The company has reported a 100 percent year-over-year growth over the past two years, with demand for its cybersecurity solution on the rise.
The funding round was led by BackingMinds, with contributions from industry veterans such as Jesper Zerlang, Lars Ankjer, Otto Krabbe, and Rolf Bladt, along with various angel investors and key employees. Susanne Najafi, Founding Partner at BackingMinds, highlighted the unique position of Uniqkey in the cybersecurity market, emphasizing its potential as a hidden gem due to the underrepresentation of immigrant founders and Nordic cybersecurity startups.
