An interesting article about the dynamics of VC funding of early-stage cyber-security companies. I have long thought that VC investment into cyber-security (and for that matter, funding of public cyber-security companies) needed to be smarter, backing relevant technologies and real winners. Now the sector is seeing a shakeout with funding targeted on quality companies.
(Reuters) – The U.S. cyber security industry, once one of the hottest targets for venture capitalists, is now grappling with a funding slump that has forced some startups to sell themselves or cut spending. Amid widespread concerns about cyber attacks and data breaches, hundreds of security startups have sprung up in recent years, promising “next-generation” technologies to fight cyber criminals, government spies and hacker activists.