Cyber Security Iberia/ Spain & Portugal

The Cyber Founders’ Flywheel

How Iberia’s serial operators are building — and exiting — the next generation of cyber security.

An opinion & market perspective on Spain & Portugal cyber security M&A and fundraising. Produced by Dougan Milne, MD Tech — Borealis Partners.

Read the perspective
01 — Borealis Perspective

The thesis in one sentence.

Cyber security is the first Iberian technology sector to build a true founder flywheel — a self-reinforcing loop of serial operators, recycled capital, and early international exits — and the founders who design for that exit from day one will capture the value the rest of the market is leaving on the table.

The operators who built the region’s first generation of security businesses — Devo, Blueliv, Buguroo, Panda Security, VirusTotal, S21sec — are now founding the second (Onum, 8Layers, Acoru, Zynap, Xygeni), advising the third, and, through funds like 33N Ventures and HWK TechInvestment, funding all of it.

“In an ecosystem like Spain’s the critical mass for large local acquisitions simply is not there — so in the end you get bought from abroad.”

— Pedro Castillo, founder of Devo & Onum

Far from a weakness, that gravity is the mechanism that powers the flywheel. The rational founder response is not to resist it, but to architect for it — to frame the company as “Export Ready” from the beginning, treating exit readiness as a discipline built from day one, not a reaction to an inbound approach.

02 — The Engine

In cyber, the exit is the beginning of the next company.

A compounding loop of talent, capital and credibility — tighter than the consumer founder-mafias, because security talent recycles within the sector. Tap a stage.

THE
Cyber
Flywheel
03 — Market Overview & Sizing

Two markets, one regulatory umbrella.

Together, Spain and Portugal form one of Western Europe’s fastest-growing security markets — anchored to mandatory EU compliance cycles and a structural talent constraint.

🇪🇸 SPAIN ~9–10% CAGR
5B
market size, 2025 ($4.6–5.3B) → $8–11B by early 2030s
Specialized firms1,600+
Talent gap30,000+ roles
HubsMadrid · Barcelona · Bilbao · Málaga
🇵🇹 PORTUGAL ~6.7% CAGR
1.2B
market size, 2025 → ~$1.66B by 2030
Fastest layerManaged & pro services
Talent4th-hardest hiring globally
HubsPorto · Lisbon · Coimbra
Metric
Spain
Portugal
05 — M&A & Fundraising

The flywheel, turning.

International buyers acquiring differentiated technology before continental scale. Capability-acquisition, not generic growth.

Selected fundraising — Iberian cyber

06 — Competitive Landscape

Three tiers — the action is in the middle.

International acquirers and growth funds are concentrating on the independent software scale-ups and the AI-native entrants beneath the incumbents.

09 — Borealis House View

Three views we are prepared to defend.

Deliberately provocative. Where a claim invites a counter-example, we say so — and we mean the invitation.

08 — Strategic Implications

What to do about it.