Talion Cyber Security, a leading managed security service provider (MSSP) forged out of BAE Systems, has raised £2m from existing backers including NPIF – Mercia Equity Finance, which is managed by Mercia and part of the first Northern Powerhouse Investment Fund, and Crown Fund S.C.A. SICAV-RAIF.
The funding round will accelerate Talion’s growth as a trusted partner for the mid-market, a segment that faces escalating cyber risk yet remains underserved by both small providers and the largest enterprise players.
Competing alongside other major MSSPs such as Bridewell, Kyndryl and NCC Group, Talion differentiates itself with both the breadth and depth of its services spanning managed detection and response, hybrid security operations centre, threat intelligence, penetration testing, compliance reporting and incident response.
The Talion team was founded in 2010 as part of BAE Systems when the UK government tasked it with protecting the 2012 London Olympics. It became independent in 2020 through a management buy-out.
The Leeds-based business now employs a team of veteran cyber experts from defence and enterprise backgrounds. As part of this phase of growth, Keven Knight has taken over as CEO and Matthew Briggs has joined as Chair. Matthew is the former CEO of ECSC Group, the UK’s longest running full-service cyber security provider, and oversaw its sale to Daisy Group in 2023.
The investment will expand access to Talion’s services for mid-market organisations while scaling the company’s footprint across the UK and US.
Keven Knight, CEO of Talion, said: “The mid-market is in a gap-zone of cybersecurity: too complex for basic tools, too niche for enterprise-level bespoke providers. 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: “Talion is highly rated by clients and has attracted some well-known names. However, 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 first invested in Talion 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, 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 nations 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 has now launched the £660m Northern Powerhouse Investment Fund II (NPIF II) which covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.