‘End of an era’: Cyber accelerator program CyRise to shut down

The program’s backers NTT and Deakin University have made the move despite rampant interest in the cyber security sector.

CyRise CEO Scott Handsaker.

Australia’s only dedicated cyber security accelerator CyRise is shutting down, with backers Deakin University and Japanese giant NTT deciding the program has “come to its natural conclusion” despite rampant interest in the fast-growing sector.

The Australian first reported on CyRise’s establishment in 2017, with the 14-week bootcamp-style program led throughout its existence former Start-up Victoria boss Scott Handsaker. CyRise offered five start-ups from Australia, New Zealand and the wider APAC region $50,000 in funding along with mentoring and trips to Israel and the US.

The program ultimately funded 39 start-ups from Australia, New Zealand, Singapore, India and the US, with 55 per cent going on to raise a collective $40m in additional funding from investors.

The companies have created 150 additional high-value jobs for Australia, CyRise boss Scott Handsaker told The Australian. He said that the stakeholders, Deakin and NTT, had decided the program had met its objectives and would be moving on to other initiatives.

Deakin and NTT were contacted for further comment.

“It has been a tremendous privilege to build CyRise over the last six years, and we are thankful to our stakeholders for supporting us in our ambitions. It is sad that we must now finish, but we are incredibly proud of our outsized contribution to the Australian cyber security ecosystem,” Mr Handsaker told The Australian.

“What we have proven over the last six years is that Australian cyber security start-ups are a world-class investment. The future is bright if we can continue to lean in and support them in their innovation and growth ambitions. In particular, we need to drive behavioural change inside Australian corporates – to get them to adopt sovereign technology before looking elsewhere.”

CyRise had received $450,000 in funding from Victoria’s state-run start-up agency LaunchVic and mentors included the former head of the AustCyber Craig Davies, Culture Amp chief executive Didier Elzinga and Bugcrowd co-founder Casey Ellis.

Scott Handsaker.

CyRise’s chief operating officer Kirstin Mcintosh said that over CyRise’s six-year existence, cyber security had graduated from being a niche sector to a crucial issue for every business and individual.

Ian Yip, CEO at start-up Avertro, said that CyRise would leave a lasting legacy on the local sector.

“It has done significantly more to advance and support sovereign Australian cyber security technology capability than any other organisation,” he said.

“I’m deeply disappointed at this outcome and wish the local ecosystem could have done more to allow CyRise to build on its proud legacy. The world-class team at CyRise will continue to be lifelong friends of the Avertro team.”

Adam de Jong, CEO of Cyamast, also said he was deeply saddened about the program’s closure.

“The experience and support CyAmast received from CyRise was invaluable to us,” he said. “The mentors and experts at CyRise provided us with invaluable insights, connections, and resources that helped us navigate the complexity of early start-up life.

“The program’s focus on cyber security was crucial in our ability to secure funding and build trust with customers. I will always be grateful to CyRise for the role they played in our journey and the support they provided to the cyber security community.

Cydarm's Vaughan Shanks. Picture: Supplied

“Their commitment to building the cyber security ecosystem in Australia was unparalleled and will be missed, but their legacy will live on through the start-ups they have helped.”

CyRise’s shutdown comes amid a sharp uptick in interest and funding for local cyber security companies, and leaves Australia without a cyber security accelerator program. The government is currently formulating a 2030 cyber security strategy due by the end of the year, in a bid to make Australia the “most cyber secure nation” by the end of the decade.

Vaughan Shanks, chef executive of cyber security start-up Cydarm, said CyRise’s closure felt like the end of an era.

“I would not have gone very far without the mentoring and community of CyRise, and I will be forever grateful for the opportunity,” he said.

“CyRise have made a massive positive contribution to the Australian cyber industry, and the impact will be felt for many years to come.”

The current cohort is presenting their companies at a demo day in Ultimo on May 9.