Melius Cyber Consultancy (t/a Melius Cyber) secures £500k investment from Mercia
A cybersecurity business whose automated platform helps SMEs to detect vulnerabilities in their IT system has raised a further £500,000 from the North East Venture Fund, supported by the European Regional Development Fund and managed by Mercia.
The latest funding round is the second within a year for Newcastle-based Melius Cyber and will enable it to further enhance its platform and roll it out to a wider client base. The company, which is a spin-off from IT business Melius Group, secured an initial £350,000 investment from the North East Venture Fund in June 2022 to help it develop the platform and build in scalability.
Since then the company has attracted a number of key clients including financial services and public sector bodies and has been working with the Mercia team to lay the foundations for further growth. It has strengthened the management team with several key appointments including that of Matt Little, an experienced technology leader, who has joined as Chair.
Melius’s CyberSafe platform automates the process of vulnerability scanning and penetration testing, in which cyber experts simulate attacks on a system, enabling companies to detect vulnerabilities and pro-actively manage risk while keeping costs down. Developed specifically for SMEs, the platform aligns to the government’s Cyber Essentials scheme to help them gain and maintain accreditation by showing they have monitoring in place.
Richard Brown, CEO of Melius said: “We had a great 2022 in terms of moving the product forward, building our team and putting the foundations in place for growth. Our focus now is to grow our customer base and to continue to improve the product. This investment gives us the working capital we need to build our brand and market position.”
Ian Wilson, Fund Principal at Mercia, said the investment was backed by a wider package of support from Mercia ranging from discounted web hosting to mentoring and help to build their board. He added: “Cybersecurity is no longer viewed as an optional extra but as an essential service, one that is required for reporting, insurance and governance purposes. Melius’s platform could solve the security headache for many SMEs.
“Its progress over the past nine months demonstrates the benefits that early-stage companies can achieve by offering them a wider support package – not only in providing funding but also helping them put the right people and structures in place. The latest funding round will enable Melius to move to the next level.”
ENDS
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About Melius
About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group’s ‘Complete Connected Capital’. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.
The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£800million of assets under management and, since its IPO in December 2014, has invested over £96million into its direct investment portfolio. Mercia Asset Management PLC is quoted on AIM with the epic “MERC”.
The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds and details about open offers can be found through Mercia’s website.
Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –
- Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
- Enterprise Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
- EV Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
About The North East Fund
The North East Fund is a suite five venture capital and loan funds which was established in April 2018, to invest £120m in around 600 North East businesses in the period to March 2023. The fund managers provide business development advice and investment finance to small and medium sized enterprises based in the seven Local Authority areas of North East England: Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead Sunderland and County Durham. The programme encourages investment in and the commercialisation of new technologies, including low carbon technologies, as well as stimulating new business creation, private investment and entrepreneurialism in the North East, with a view to creating over 2,500 new jobs. The North East Fund has overall responsibility for the programme, which is delivered through five separate funds, each managed by independent, FCA regulated fund managers. Details of these, and up to date information on the progress of the programme, is available on The North East Fund’s website: www.northeastfund.org
The North East Fund has been established with funding from the North East of England European Regional Development Fund programme, the European Investment Bank and from returns on previous North East based, publicly supported investment funds. It is jointly owned by the seven North East local authorities
About the European Regional Development Fund
The North East Fund will receive up to £58,500,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry for Housing, Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.
About the European Investment Bank
The European Investment Bank (EIB) will lend up to £60,000,000 to the North East Fund programme. The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. For more information, visit: http://www.eib.org/about/index.htm
