Deutsche Beteiligungs AG Takes Minority Stake in Bug Bounty Switzerland

Deutsche Beteiligungs AG (DBAG) has acquired a minority stake in Bug Bounty Switzerland AG (BBS), a Swiss cybersecurity company specializing in ethical hacking and software-as-a-service (SaaS). The deal was announced on April 29, 2026. The investment, made through a capital increase alongside lead investor Direttissima Growth Partners, aims to support BBS’s expansion and product development. DBAG’s participation is part of its Long-Term Investments strategy, which finances deals exclusively from its own balance sheet, allowing for extended holding periods and flexible strategic support.

Founded in 2020 in Lucerne by Sandro Nafzger, Florian Badertscher, and Lukas Heppler, BBS has transitioned from a project-based service model to a subscription platform with its Cyber Resilience Shield. This platform orchestrates over 16,000 vetted ethical hackers and AI agents to provide continuous, scalable security testing and exposure assessments. The company serves 52 customers, including the Swiss National Cyber Security Centre and leading firms in financial services, defense, and critical infrastructure.

DBAG’s investment complements Direttissima Growth Partners’ operational scale-up expertise in the B2B technology market. Together, they plan to professionalize BBS’s organization, accelerate growth in Switzerland, and expand into German-speaking and Italian markets. DBAG’s spokesman Tom Alzin highlights the company’s unique position in automating security testing orchestration, a segment previously resistant to automation, and praises BBS’s profitable, founder-led model.

The cybersecurity testing market is growing rapidly, projected to increase from $14.7 billion in 2024 to $43.9 billion by 2029, driven by expanding AI-related attack surfaces, regulatory demands, and a shift toward continuous security solutions. According to Houlihan Lokey, 91% of companies plan to increase cybersecurity spending in 2026, underscoring the sector’s structural growth potential.

BBS’s platform combines human expertise with AI technology to address the increasing complexity of cyber threats. Its competitive advantage lies in the orchestration of security testing, regulatory workflow integration, and accumulated institutional knowledge, providing transparent, actionable insights to customers. CEO Sandro Nafzger emphasizes the company’s commitment to making intelligent security testing a global standard.

Financial terms of the deal were not disclosed. DBAG’s Long-Term Investments strategy focuses on minority stakes with longer holding periods, enabling flexible support for portfolio companies. This marks DBAG’s seventh investment under this strategy, with previous investments showing successful exits.

Looking ahead, DBAG and Direttissima aim to leverage their combined expertise to scale BBS’s subscription-based platform, expand its customer base in regulated sectors, and enhance product capabilities. The partnership also seeks to navigate integration challenges such as aligning strategic priorities and maintaining innovation pace amid growth.

Overall, the investment strengthens BBS’s position as a leading cybersecurity SaaS provider in Switzerland and the broader DACH region, combining AI and human intelligence to meet evolving cybersecurity demands.