Denmark-based cybersecurity startup Uniqkey has successfully raised €5.35 million in a new investment round led by Swedish venture capital firm BackingMinds, with contributions from industry veterans and leading angel investors. This fresh capital injection will further Uniqkey's mission to strengthen cybersecurity for European businesses, particularly Small and Medium-sized Enterprises (SMEs), amid the ever-growing threat of cyber attacks and data theft.
In a world where digital threats are growing at an alarming rate, the need for strong cybersecurity measures has never been greater. By 2024, global losses from cybercrime are expected to reach a staggering $9.5 trillion, up from $3 trillion in 2015. European businesses are particularly vulnerable, with German companies alone expected to lose €205.9 billion to cyber attacks in 2023. The entire European Union faces a similar risk, having lost €268 billion to cybercrime in 2018.
Rising geopolitical tensions, particularly between Russia, Ukraine, the US and China, have placed added pressure on the EU to strengthen its cybersecurity capabilities. Years of underinvestment in digital infrastructure have left Europe highly dependent on foreign technology, threatening its digital sovereignty. Startups like Uniqkey now play a pivotal role in reducing this dependency and securing Europe's digital future.
Uniqkey's Strategic Role
Uniqkey is focused on expanding its military-grade cybersecurity solutions across Europe with the ambitious goal of becoming the market leader in password management within three years. The company currently protects over 500 small and medium-sized businesses across the continent and has experienced 100% year-over-year growth over the past two years. With the new funding, Uniqkey aims to expand its services to thousands of businesses and strengthen their defenses against cyber threats.
Hakan Yagci, CEO and founder of Uniqkey, emphasizes the importance of the company's approach: “Today, everyone has a mobile phone. It has become an essential way for us to go online in our daily lives. That's exactly why we've put the mobile phone at the heart of Uniqkey's security solutions, and a big reason why we're seeing such high demand for our solutions. Just like mobile apps have changed the way people transfer money instantly and access bank accounts, Uniqkey will change the way people access their internal systems – making it easier, faster and more secure.”
Addressing security gaps for small and medium-sized businesses
The European economy relies heavily on 24.3 million small and medium-sized enterprises, accounting for 99.8% of all businesses in the region. But more than 12 million of these businesses lack a cybersecurity plan, putting the entire economy at risk. The soon-to-come NIS2 and DORA regulations will hold company directors and boards personally accountable for their cybersecurity measures, in a similar way that the GDPR has transformed data privacy practices.
Uniqkey's solution addresses a critical vulnerability in enterprise defenses: poor password management. With 81% of data breaches due to weak or compromised passwords, Uniqkey's encrypted password protection provides a robust defense mechanism. The company's solution seamlessly integrates with mobile devices and requires a mobile app for system login, similar to local ID apps used in banking across Europe.
Investment and Vision
BackingMinds, known for investing in “blind spots” – overlooked areas with huge potential – sees Uniqkey as a standout opportunity in the cybersecurity space. “Considering that less than 1% of founders in the cybersecurity industry are immigrants and only 2% of cybersecurity startups are from the Nordics, Uniqkey stands out as a hidden gem,” says Susanne Najafi, founding partner at BackingMinds. Colleague Sara Wimmercranz adds, “After tracking over 500 cybersecurity startups across Europe, it was clear to see that Uniqkey stood out. We are impressed with Hakan, the company's management team and their technical expertise, and are excited to support the company in its mission to protect Europe from growing cyber threats.”
For Uniqkey, this investment is not just about expanding its business, but about securing Europe's digital future. Simon Cederstråhle Hellstrøm-Melander, CMO at Uniqkey, said: “This new funding will help us accelerate how we scale our technology to thousands of businesses across Europe in the coming years. Protecting SMEs is at the heart of what we do and we hope to play a key role in the development of Europe's cyber landscape.”
As Europe prepares for a future where digital security is paramount, Uniqkey's vision goes beyond password management: the company aims to become the digital security guard for employees, raising cybersecurity awareness and protecting businesses from the inside out.
