“It’s not great”: CyRise closure leaves Australia without a cybersecurity startup accelerator

CyRise chief executive Scott Handsaker

Global IT company NTT and Deakin University have decided to close CyRise Accelerator, a collaboration they opened in 2017.

Over the six years, CyRise has made 39 investments into startups from Australia, New Zealand, Singapore and the US, and according to an announcement on Medium, is “confident that many of our CyRise portfolio companies will go on to see global success.”

Fifty-five percent of the companies have gone on to raise funding from investors, totalling more than $40 million in additional capital and creating more than 150 jobs in Australia.

“The program has come to its natural conclusion,” said the post, and will close on May 19.

CyRise is currently Australia’s only startup accelerator with a focus on cybersecurity startups.

“It’s not great that Australia won’t have an accelerator for cybersecurity startups,” said tech investor and commentator Alan Jones in a Twitter thread.

“Accelerators bring advice, customer intros, pre-seed capital and industry connections.

“It becomes more challenging to start a cyber startup in Australia now, and increases the odds the talent goes offshore.”

Australia's specialist cybersecurity accelerator program @cyriseco is closing next month. Since 2017 it's invested in 39 startups that have gone on to raise $40M more, currently valued at 3.55x and 50% IRR, proving Aussie cyber startup ideas are world-class… https://t.co/YgwkDpS8ei

— alan jones (the nice one) (@bigyahu) April 24, 2023

CyRise is led by former Startup Victoria head Scott Handsaker. Upon the accelerator’s launch in 2017, Handsaker said “Victoria is fast becoming known as the best location in APAC for the cyber security industry.”

“Where Australia is lacking in this space is in the commercialisation of ideas. There is so much talk around R&D, which is great to see, but how do we package up these findings and ideas in order to yield better commercial outcomes for the Australian economy?”

CyRise offered a 14-week program “exposing startups to international best practice, industry mentors and potential investors and customers,” said a Deakin University page. Since 2017, 27 companies have graduated from the program.

“The team and I want to thank you for the support you’ve given CyRise, our founders and the cyber security professionals in our programs. It’s been a true pleasure to work with the Australian cyber security community. You have backed us every step of the way by generously sharing your expertise and networks, and by taking a chance to work with early-stage startups,” said the Medium post.

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