July 16 (Reuters) - Italian tech firm Exein said on

Wednesday a pick up in European defence spending was supporting

its domestic growth, as it closed a funding round aimed at

global expansion.

The startup, which provides embedded cybersecurity on small

devices including chips, is planning to expand its range of

products as countries and businesses move away from cloud-based

systems because of data sovereignty concerns and rising costs,

its Chief Executive Gianni Cuozzo said.

WHY IT'S IMPORTANT

Italy has been trying for years to foster a tech startup

sector.

As European countries increase their defence spending in a

push to meet NATO targets and protect themselves against Russian

expansionism, demand for domestic cybersecurity and

infrastructure protection systems is increasing.

BY THE NUMBERS

Exein said on Wednesday its Series C funding round raised 70

million euros ($81 million) for expansion across the United

States, Japan, Taiwan, and South Korea, and to strengthen its

European presence.

Its plans include acquisitions in Europe and the U.S. to

target new users, followed by another funding round for a

"bigger acquisition", and a public listing between 2029 and

2030, Cuozzo said.

The group, whose clients include MediaTek, Daikin

, Seco and Kontron, said in April it

was valued at around 500 million euros.

It is targeting 20 million euros in revenues this year and

aiming for triple-digit revenue growth in each of the next three

years, helped by acquisitions, Cuozzo said.

KEY QUOTE

Attackers "are no longer breaching through the front door;

the microwave on a military ship, or the smart fish tank in a

hospital waiting room - any one of these could be exploited to

compromise the entire network," said Elena Moneta, Principal at

London-based VC firm Balderton, which led the funding round.

($1 = 0.8604 euros)