Can founders and investors persuade the UK government to invest in cyber sovereignty and create a British version of the unit dubbed the “startup machine of Israel"?
Britain’s cybersecurity leaders are set to urge their Government to take inspiration from Israel’s startup-driven defence model and to back British cybersecurity vendors instead of relying on US big tech.
In a draft of an open letter to the UK Government seen by Cybernews today UK founders, investors, and security executives will call on Westminster to “become Britain’s best customer” and help build a sovereign cyber ecosystem to rival Israel’s.
The letter, which is also addressed to Liz Kendall MP, Lord Vallance, and Ian Murray MP at the Department for Science, Innovation and Technology (DSIT), argues that while the UK has “exceptional technical talent” and “a growing number of startups tackling real problems,” it lacks government support to turn that into global leadership.
“Britain builds brilliant technology. It’s time our Government became its best customer,” the letter declares.
It sets out proposals for the government to procure more from startups, reform its digital marketplace, open public networks such as the NCSC’s i100 to vetted innovators, and introduce targeted tax credits for organisations that pilot British-made cybersecurity tools.
The signatories want departments like DSIT and the Ministry of Defence to actively trial and purchase from emerging UK companies rather than relying on what they call “large incumbents” or overseas suppliers.
The authors point to Israel’s Innovation Authority (IIA) as a model. In Israel, government contracts and military spin-offs routinely launch startups into global prominence - something the UK, they argue, could easily replicate with the right incentives.
“The FTSE 100 remains inaccessible to most early-stage companies,” the letter says. “The Government can act as a crucial bridge between them and the UK’s largest organisations.”
Crucially, the signatories also call for the creation of a UK version of Israel’s Unit 8200, the elite military cyber unit behind many of Israel’s most successful tech founders.
Once dubbed the “startup machine” of Israel, Unit 8200 alumni includes Checkpoint, Palo Alto Networks, Wiz (acquired by Google this year for $32 billion), Armis, SentinelOne and the NSO, makers of controversial spyware Pegasus.
The letter proposes dedicating 10% of defence spending to novel technologies and expanding the Joint Cyber Reserve Force, a volunteer reserve digital army that draws civilian specialists into national-security roles.
UK Cyber Flywheel
The open letter follows last month’s “Building the UK Cyber Flywheel” event hosted by Harmonic Security at London’s National Theatre, which helped shape many of its recommendations.
The 150-person forum, which took place on 9 October, brought together founders, investors, CISOs and government officials including Ollie Whitehouse (CTO, NCSC), David Knott (CTO, UK Government) and Ben Dewar-Powell (CISO, UK AI Safety Institute).
Harmonic founder and CEO Alastair Paterson, one of the flywheel's organisers and authors of the open letter, told the event's audience last month: “Israel has an incredible cybersecurity ecosystem - it turns its founders into winners. They’ve had 51 exits above $100 million. The UK has five and four of them are in this room.”
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Speakers agreed that stronger procurement, cultural confidence, and government partnership were essential if Britain is to match Israel’s success.
As one attendee summed it up: “If Israel can do it, why can’t Britain?”
According to an email sent by Paterson to all Flywheel attendees yesterday, the letter will be shared publicly onFriday 14 November, once potential signatories have had time to respond.
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