15 minute read
Nov 29, 2024
Cheltenham: The Next Global Hub for Cyber Innovation?
This week, I had the privilege of speaking at another CyNam event, sharing my perspective as both a founder and angel investor. Each time I take the stage, I’m struck by the energy and ambition radiating from Cheltenham’s cyber community. This town, famous for GCHQ, feels like it’s on the cusp of something extraordinary. But potential is one thing - realising it is another.
Cheltenham is poised to become a world-leading hub for cyber startups and innovation. Yet, the question remains: how do we turn the "potential" into a thriving ecosystem that rivals places like Silicon Valley, Tel Aviv, or Cambridge?
Let’s explore the opportunity, and the challenges.
My Journey Into Cyber and Innovation
My relationship with tech and innovation started years ago, long before I scaled LOT.TO to a successful exit or invested in over 15 startups through RLAB Ventures. I’ve seen ecosystems thrive, crumble, and rebuild. The key takeaway? Successful clusters don’t happen by accident. They’re built. You lay the foundations. You light the fire. Then you fuel it, big time.
Cheltenham has the right foundations - access to GCHQ, top-tier talent, a safe town, great schools, often voted one of the best places to live in the UK, and the CyNam network that fosters collaboration across industries. But, from my experience, raw ingredients don’t make a meal without the right recipe.
Why Cheltenham Stands Out
Proximity to GCHQ
Cheltenham’s close ties to GCHQ are its ace in the hole. Few towns can boast such a deep pool of cyber expertise and access to classified knowledge. The "defence halo" effect creates a pipeline of skilled professionals uniquely positioned to tackle global cyber challenges.CyNam’s Role
CyNam has made significant strides in building a platform for innovation and networking. Their events bring together corporates, startups, investors, and academics to share knowledge and connect. It’s a catalyst, not the endgame, but vital nonetheless.A Smaller Pond, Easier Visibility
Unlike London, Cheltenham allows startups and founders to gain traction without being lost in a sea of competitors. You can network and get noticed quickly - a huge advantage for young businesses.
The Gaps in Cheltenham’s Ecosystem
For Cheltenham to take the global stage, it needs more than talent and connections. Here’s what’s missing:
Co-Working Spaces and Startup Infrastructure
Innovation thrives where people collide - literally. Look at Cambridge’s science parks or Tel Aviv’s tech accelerators. Cheltenham needs more spaces where tech startups (from all segments) can co-create, collaborate, and scale. The current offering is fragmented. We need lots of dedicated innovation hubs with co-working spaces, labs, and accelerators (and coffee!) to attract both talent and investors.Access to Funding
Let’s be honest, Cheltenham is not yet a magnet for venture capital. London, Berlin and the U.S. still dominate this space, and local angel investors are few and far between. Building trust and visibility with the investment community is essential to fuel early-stage startups.Top-tier Academic Partnerships
World-class academic partnerships drive clusters like Boston’s biotech scene or London’s AI surge. Cheltenham’s ties to academia are underdeveloped. Stronger links with universities across the UK, or fostering new programs focused on cyber tech, would bridge this gap.Diversity and Inclusion
Innovation thrives on diverse perspectives, but Cheltenham’s ecosystem currently lacks visible representation across gender, ethnicity, and socioeconomic backgrounds. We need to encourage participation from underrepresented groups, from school outreach programs to board-level diversity.Youth and Retention
The future workforce is key. Right now, too many young professionals leave Cheltenham for London or Bristol. Keeping this talent local means creating opportunities and a vibrant lifestyle that appeals to Gen Z and Millennials.
The Complexity of Building an Ecosystem
Building a globally competitive ecosystem isn’t about throwing money or talent at the problem. It’s about balancing interconnected factors.
Culture: Startups need an environment where failure isn’t feared but embraced as a step toward growth.
Community: Founders, investors, corporates, and academics need reasons to stay engaged beyond their immediate goals.
Long-Term Vision: This isn’t a one-year or even a five-year plan. It’s about creating a foundation that will thrive for decades.
I’ve seen ecosystems fail because they were overly reliant on one sector, lacked community buy-in, or didn’t provide pathways for scaling. Cheltenham must avoid these traps.
The Vision: Cheltenham as a Global Cyber Hub
Imagine Cheltenham in 2030.
A bustling innovation campus hosting world-class startups and spinouts.
A steady influx of venture capitalists attending pitch days and scouting the next unicorn.
A diverse, inclusive community of founders, investors, and academics driving global solutions to cyber threats.
This vision is achievable, but only if we commit to building the infrastructure and culture needed to support it. It’s not about copying Silicon Valley - it’s about creating something uniquely Cheltenham.
How RLAB Ventures Can Help
At RLAB Ventures, we specialise in fostering high-growth businesses in complex ecosystems. As a founder and angel investor, I’ve learned what works - and what doesn’t - when building startups and clusters.
Cheltenham’s opportunity in cyber is undeniable. But to seize it, we need advisors who understand the interplay between startups, funding, and community-building. That’s where we come in.
Whether you’re a founder looking to scale or an investor exploring opportunities in cyber, let’s talk. The future of Cheltenham - and cyber innovation - starts with conversations like these.
Final Thoughts
Cheltenham is already on the map for cybersecurity. The challenge now is to create an ecosystem that supports the entire lifecycle of innovation - from ideas to exits.
It won’t be easy, but the best things never are.
Let’s build something extraordinary, together.