Cybersecurity: A Booming Business

September 23, 2020

The United Kingdom has seen record growth for cyber security startups. The record growth in the cybersecurity field is due to the COVID-19 pandemic and the heavy demand on Internet and digital services. Internet and digital services must be protected from potential bad actors stealing individuals’ information or be mischievous during Zoom meetings. Tech Round explains more about cybersecurity’s growth in: “Cybersecurity: The Fastest Growing UK Startup Sector During COVID-19.”

Before the pandemic struck, cybersecurity focused on financial and regulatory risks. Cyber risk management is now a hot ticket for investors. COVID-19 also points to a future where more people will be working remotely, organizations will host their data offsite, and more services will be online:

“Ajay Hayre, Senior Consultant Technology at Robert Walters comments: “Historically IT security has represented only 5% of a company’s IT budget but due to remote working and transition to online or cloud-based solutions, cybersecurity has been thrust to the centre of business continuity plans, having proved its worth in enabling business objectives during lockdown. Not only will every company see the benefit of having this expertise in-house, but they will be looking externally for tools, services and advisors to help guarantee the future-proofing of their business by way of solid and robust cybersecurity provisions.”

What is even more interesting are the venture capitalists behind the investing. The PHA Group breaks down who the “5 Key VCs Backing Cybersecurity Startups” are. According to the LORCA Report 2020, a half billion pounds were fundraised in the first half of 2020 for cybersecurity startups. This is a 940% increase compared to 2019. Venture capitalists also want to invest their money in newer technologies, such as AI, encryption, secure containers, and cloud security. The five companies that invested the most in UK cybersecurity are Ten Eleven Ventures, Energy Impact Partners, Index Ventures, and Crosslink Capital.

Whitney Grace, September 23, 2020

Written by Stephen E. Arnold · Filed Under cybersecurity, Financial, News

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.