PAYFONT, the Scottish cyber security firm, has raised a further £1.2 million from investors, taking the total raised by the start-up to nearly £3m since its commercialisation process started last year.

The latest fund-raiser comes as consumers become increasingly focused on data protection and identity theft, following high-profile hacks on companies such as Sony Pictures, Apple and Talk Talk.

Payfont has developed patented personal authentication and data security technologies, which its creators believe will being a “generational change” in how data can be safely secured and stored.

The technology is particularly suited to financial services companies, but it is believed its “core principles” could equally be utilised by organisations such as the National Health Service.

The business, co-founded by chief executive David Lanc and investment director Ian Paterson Brown, has used the funding it has attracted to date to build a 13-strong team of programmers.

Mr Paterson Brown said events such as the hacks at Apple iCloud, including the Jennifer Lawrence leaked photographs controversy, and the confidential emails leak at Sony Pictures, have brought the issue of identity and data theft to the attention of the “normal person on the street”.

Asked why investors have shown the appetite to back the business, Mr Paterson Brown said: “Where we started out was to try and secure payments. In securing payments and all of these other things, there are two things you need to do – protect people’s identity and secure their data.

“We have been working on this for some time and we have got something that is completely unique and patented. As such with new technology that provides a generational change in the way people are protected and data is secured, there is an appetite to get involved and see if we can take it to market and all make some money out of it.”

The latest injection secures its funding for 2016, with Mr Paterson Brown stating that talks are now taking place with strategic partners to raise further capital.

That could see it progress from working with private investors, such as high-net worth individuals, to venture capitalists or organisations which could use the technology in their own operations. Banks are among potential partners.

Mr Paterson Brown, a fund management industry veteran, who held senior roles at firms such as Ivory and Sime, said: “Clearly, if we could secure a partner who is not only interested in investing but using the technology that would be better. But it maybe a venture capitalist or an ultra-high-net worth individual.

“And we are not restricted to just the UK – we are having some discussions in North America. But all of these things are at an early stage. We are well funded and there is no imminent requirement to raise any further funding. We are talking to people with regard to moving the company into commercial mode.”

Asked which type of organisations the business will be targeting with the technology, Mr Paterson Brown noted: “It’s very suited for financial services because of the dynamic authentication and data [protection]. But everybody in the world has data. It would be of interest to any corporate which has data because they have an obligation to keep their customers secure.

“As we have seen from some of the high-profile cyber heists and attacks over the last 12 months, nobody is not a target.”

Payfont is currently at the “pre-revenue” stage, and aims to bring its product to market in early 2016. The product will be continually developed as the company grows, Mr Paterson Brown said.