The first dedicated cybersecurity investment fund has been listed in Europe on the London Stock Exchange.
ETF Securities, a London-based exchange-traded fund issuer, has partnered with US-based index provider ISE ETF Ventures to launch the ETFS ISE Cyber Security GO UCITS ETF, which links to the ISE Cyber Security UCITS Index. The idea is to provide investors with a simple, clean and cost-effective way to gain exposure to the cybersecurity, which ETF Securities predicts will grow at a compound annual growth rate of 9.8% to reach $170 billion by 2020.
Security professionals have expressed hope that the ETFS LSE Cyber Security UCITS fund will be the first of many to focus on cyber.
“The launch of the first dedicated cyber security fund in the UK this morning is great news for the sector,” said Nithin Thomas, founder and CEO of security start-up SQR Systems. “The strategic importance of security to the country is huge, and a dedicated fund at the LSE is a step in the right direction. I hope we will see much more activity in the coming months, with funds earmarked for early-stage companies, as it is vital that we are able to source expertise and technology from within our own country, rather than importing it from abroad.”
Bringing in ideas from academia is also crucial, he added.
“UK universities such as Bristol and Cambridge have fantastic research programmes that are cultivating creative new approaches to security, but they still face a challenge in translating this research into viable business models that will help protect our population and businesses from cyber threats,” said Thomas. “Funding is key to providing opportunities for innovative entrepreneurs who previously had to relocate to markets like America, [where] funding is more readily available.”
