BAE spin-out Talion raises £2M to scale mid-market cybersecurity across UK and US

Talion Cyber Security is stepping on the gas. The UK-based managed security service provider, originally forged out of BAE Systems, has raised £2 million from existing investors to scale its mid-market cybersecurity services across the UK and the US.

The funding comes from NPIF – Mercia Equity Finance, managed by Mercia and part of the first Northern Powerhouse Investment Fund, and Crown Fund S.C.A. SICAV-RAIF. The fresh capital gives Talion more room to grow as a trusted partner for mid-sized companies—a segment facing rising cyber threats but often overlooked by both boutique providers and the biggest enterprise players.

Talion operates in the same space as larger MSSPs like Bridewell, Kyndryl, and NCC Group. Its edge lies in the breadth of its services, spanning managed detection and response, hybrid security operations, threat intelligence, penetration testing, compliance reporting, and incident response. The company’s roots go back to 2010, when it was formed inside BAE Systems to help protect the 2012 London Olympics. A decade later, it spun out through a management buy-out and became an independent business in 2020.

Based in Leeds, Talion employs a team of seasoned cyber experts with backgrounds in defense and enterprise. As part of this next phase, Keven Knight has taken over as CEO and Matthew Briggs has joined as Chair. Briggs previously led ECSC Group, the UK’s longest-running full-service cybersecurity provider, and oversaw its sale to Daisy Group in 2023.

Talion Cyber Security Accelerates UK and US Expansion with Fresh £2M Funding

The investment will help Talion broaden its reach in the mid-market and grow its footprint across both sides of the Atlantic. Knight describes the company’s approach as filling a “gap-zone of cybersecurity: too complex for basic tools, too niche for enterprise-level bespoke providers.” He said Talion’s Hybrid Defence model “fills that gap by offering transparency, shared control, and solutions scaled to the needs of firms that are growing fast but can’t afford to be overcharged or left exposed. With this investment, we can accelerate our innovation in MDR, threat intelligence, and service delivery for mid-sized enterprises.”

NPIF and Mercia first invested in Talion in 2021. Dawn Tyler, Investment Director at Mercia Ventures, said the company has earned strong client ratings and counts well-known names among its customers. “We believe the real opportunity now lies with medium-sized companies, whose needs are too complex for small providers but who are being overcharged and underserved by the big players. This funding will help it to establish a strong foothold in this part of the market.”

Crown joined as an investor in 2022. Dr Roland Rausch, Chairman of Crown, said: “Crown, a regulated Luxembourg investment fund, is delighted to support the growth of Talion, particularly as it seeks to expand its geographic reach with other Crown portfolio companies.”

Debbie Sorby, Senior Investment Manager at the British Business Bank, highlighted Talion’s role in West Yorkshire’s growing tech scene. She said: “West Yorkshire is home to some exciting and fast-growing companies, and it is great that Talion is still setting the example when it comes to creating new solutions and competing alongside the nation’s leading cybersecurity companies. The first Northern Powerhouse Investment Fund is still leaving a lasting impact, helping businesses like Talion continue to access finance to grow.”

The British Business Bank recently launched the £660 million Northern Powerhouse Investment Fund II, covering the entire North of England. The program offers loans ranging from £25,000 to £2 million and equity investments up to £5 million to help small and medium-sized businesses start up, scale, or stay ahead.