CBInsights report on funding trends in cybersecurity makes interesting reading.
Cybersecurity remains a hot area for VC investment with more than $1.5bn deployed in the first half of this year, despite a decrease in comparison to the H2'15 (c. $2.3Bn). Seed investment is down over the same period to 31% of funds deployed from 37% in the second half of 2015.
Peter Wolfers is COO at FirstCapital, a UK/USA based technology Investment Bank. Visit FirstCapital’s web sitewww.firstcapital.co.ukand follow FirstCapital on twitter @smartdealmaking
Overfunded? Cybersecurity Startups See Investment Slowdown After a peak in late 2015, the beginning of 2016 saw more tepid investor interest in cybersecurity. a16z has been the most active investor. Five out of the nine private company unicorns in cybersecurity reached their $1B+ valuations last year, as the category remained hot in the wake of persistent security attacks and hacks faced by business and government. But deal activity and dollar funding have since slowed down amid investor worries that the space has been overfunded. Established market segments like enterprise data and network security still see big deals like the recent $130M in growth equity financing in June 2016 to network monitoring company LogicMonitor. Other areas like predictive threat intelligence and smartphone security have also perked investor interest.