Target Information

Cybertrap, a Vienna-based cybersecurity startup, is undergoing a significant transformation with a new management team and backing from the European Super Angels Club (ESAC), Europe's largest pan-European investor network. With an investment exceeding half a million euros, ESAC supports Cybertrap in pursuing a larger investment round aimed at facilitating its long-anticipated international expansion. Cybertrap has established itself as the market leader in deception technology within the DACH region (Germany, Austria, Switzerland), providing advanced cybersecurity solutions that divert attackers into a specially created IT environment, allowing the organization to monitor and study them without exposing its real infrastructure.

The rise in cyberattacks has been alarming, as indicated by the KPMG study 'Cybersecurity in Austria 2023,' which reports that incidents have tripled within a year. Cybercrime reports have surged sharply, yet the detection rate remains low at just 34%. The repercussions of cyberattacks for organizations can be severe, leading to reputational damage, operational shutdowns, and escalating remediation costs often amounting to millions. Investors and industry experts such as Clemens Foisner, Jürgen Kraupa, and Adi Reschenhofer, now actively part of the management team, aim to tackle this growing threat with Cybertrap's innovative solutions.

Industry Overview

The cybersecurity landscape in Austria presents a critical picture, marked by a significant increase in cybercrime rates, which poses an ever-expanding threat to businesses and public sector organizations. Experts highlight an urgent need for more robust cybersecurity measures due to the rapid evolution of cyber threats, thereby reinforcing the pressing demand for effective cyber defense technologies. Furthermore, the low resolution rate of reported cybercrimes indicates a systemic issue within the industry that necessitates innovative solutions to enhance detection and prevention capabilities.

The Austrian government is ramping up its efforts to improve cybersecurity through various initiatives and funding for research and development in technology sectors. This shift not only aims to safeguard national interests but also to foster a burgeoning cybersecurity ecosystem capable of addressing advanced cyber threats effectively. The collaboration between public and private sectors is key to achieving these goals, enabling a concerted response against the pervasive issues of cybercrime.

In this context, startups like Cybertrap play a vital role. They contribute to transforming the market from reactive to proactive cybersecurity strategies, focusing on innovation and advanced technologies. This positions Austria as a growing hub for cybersecurity solutions and creates a breeding ground for startups that can lead the charge in cybersecurity advancements, creating job opportunities and bolstering the economy.

Rationale Behind the Deal

The collaboration between Cybertrap and the European Super Angels Club is motivated by a shared vision to combat escalating cyber threats in a rapidly evolving digital landscape. The investment will not only provide Cybertrap with the necessary capital to enhance its technological innovations but also help it scale its operations and reach international markets. With a growing portfolio of clients across various sectors, the stake from ESAC is expected to accelerate Cybertrap's growth trajectory, paving the way for future successes in contributing to global cybersecurity.

Moreover, ESAC's investment is a statement of confidence in Cybertrap's business model, which leverages deception technology to protect organizations against malicious attacks effectively. By backing a startup that is at the forefront of innovation in cybersecurity, the investor reinforces its commitment to enhancing the security landscape in Europe.

Information About the Investor

The European Super Angels Club (ESAC) is an exclusive investment network composed of seasoned investors and visionary entrepreneurs committed to identifying and nurturing high-growth potential startups. Established by Berthold Baurek-Karlic, CEO of Venionaire Capital, alongside partners from KPMG, the club is recognized for its focus on fostering innovation across the European technology landscape. With a membership that includes affluent individuals, family offices, venture capitalists, and corporate venture arms, the ESAC taps into collective expertise and financial strength to support European startups.

Berthold Baurek-Karlic, the current president of the ESAC and recently named Business Angel of the Year, emphasizes the organization's dedication to developing Austria into an innovation-centric hub. The ESAC seeks to enhance the visibility and impact of startups and small to medium enterprises (SMEs) in the public eye, thereby cultivating an environment conducive to innovation and economic growth.

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The investment in Cybertrap is poised to be a worthwhile endeavor for the European Super Angels Club. Given the alarming growth of cyber threats and the pressing demand for advanced cybersecurity solutions, backing a startup like Cybertrap fills a critical niche in the market. The combination of innovative technology and a strong management team led by experienced professionals like Adi Reschenhofer positions Cybertrap for substantial growth and success in the cybersecurity domain.

Moreover, Cybertrap's expertise in deception technology provides a unique approach to cybersecurity, which not only increases protection but also improves the likelihood of identifying attackers and their methodologies. This dual benefit of offense and defense underlines Cybertrap's potential as a significant player in the global cybersecurity landscape.

As the need for effective cybersecurity escalates, investments in companies like Cybertrap will increasingly contribute to safeguarding businesses and organizations against cyber threats. The European Super Angels Club's timely intervention could result in a strong return on investment in an industry that is expected to grow exponentially in the coming years. Therefore, its involvement in Cybertrap appears to be a strategic move poised to yield significant rewards while enhancing the overall cybersecurity infrastructure in Europe.

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