Cleo Capital, an early-stage venture fund with investments in AI firm Groq, fintech company Ellevest, and fashion brand Hill House, has launched a new cybersecurity accelerator to combat the growing threat of cybercrime. The program is open to pre-seed and seed companies from around the world, offering a standard investment of $250,000 for 7% equity.

The accelerator, a remote 12-week program, aims to support up to ten companies in developing innovative solutions to tackle the increasing burden of cybersecurity threats. According to the FBI, Americans lost more than $12.5 billion to cybercrime in 2023, a staggering increase from the combined $11 billion stolen in 2020 and 2021.

Sarah Kunst, founder and managing partner of Cleo Capital, was inspired to launch the accelerator after witnessing the devastating impact of fraud on individuals, including her father and nonagenarian grandmother, who experienced cyber threats and fraud in their small town in America. "You know it's out of control," Kunst said, emphasizing the need for innovative solutions to address this critical issue.

Kunst rejects the notion that only enterprise startups can thrive in the cybersecurity sector, highlighting the massive opportunity to develop solutions that cater to the 90% of Americans who face cybersecurity issues in their daily lives. The accelerator is particularly interested in companies focusing on consumer, defense, and dev tools and infrastructure.

A pressing concern for Kunst is the ease with which scammers can target victims, often pretending to be someone else on social media or dating apps. To combat this, she envisions a future with more online authentication tools to prove identities, as well as apps that alert users to potential scams and protect against government-backed cyberattacks. However, Kunst also emphasizes the importance of considering user privacy when developing these solutions.

The deadline to apply to the accelerator is January 20, with a February 24th start date. Kunst believes that this initiative marks the beginning of a significant shift in the industry, stating, "This is a small start of a giant industry. We need and deserve an internet that has some amount of trust and security. Cleo is funding that shift."

The launch of Cleo Capital's cybersecurity accelerator comes at a time when venture funding is flooding the sector, with several established companies reaching "unicorn" status this year. The program's focus on early-stage companies and innovative solutions is likely to have a significant impact on the industry, driving progress toward a more secure and trustworthy online environment.