German security technology company Arcos has raised €5.5 million in seed funding to expand its platform for monitoring physical security incidents across critical infrastructure. The round was led by High-Tech Gründerfonds, with participation from Bayern Kapital, Pact Haufe Robin Capital and business angels. Arcos combines signals from connected sensors into a single operational system for managing security incidents at sites including railway stations, substations and data centres. The platform integrates monitoring, decision-making and incident management processes that are typically handled by separate systems. The company develops both the software platform and control centre infrastructure, allowing teams to continuously update workflows based on real-world incidents. Arcos will use the funding to expand its team in Germany, develop its platform further and enter additional European markets.

Haufe Group Ventures, the investment arm of Haufe Group, invests up to €1 million initially in B2B software-as-a-service startups. Recent investments include CyberDesk, a Munich-based cybersecurity startup founded in 2022, alongside Venture Stars, TKM, Gründerfonds Ruhr and Caesar Venture. Managing Director Jasper Roll says the current investment environment in Germany is "better than many think" for strong teams, though increasingly challenging. He notes an "abundance of solutions", particularly around AI, making differentiation crucial. Roll advises founders to focus sharply on defining real problems rather than technology capabilities. "Software is increasingly becoming a commodity," Roll said. "The decisive question is no longer what your technology can do, but which problem you actually solve — and why it's relevant enough for someone to pay for it.