Despite much turmoil in the stock market, cybersecurity investment is prevailing and organisations are increasing their budgets in this area. Cybersecurity firms continue to experience positive funding rounds, with investors maintaining a strong appetite for high-tech defence systems. According to experts this interest is unlikely to wane any time soon in view of the fact that potential attacks and threats are set to increase.
In the latest funding round Bit9 + Carbon Black clearly showed that investing in cybersecurity is still a high priority. The company, which offers a service to detect and protect servers from potential threats, said it is to begin another funding round with one investor estimating the sum to be around $50m (£32.7m). This adds to the $120m already raised. Elsewhere, cloud security business Zscaler recently closed another funding round only a month after it had gained $85m in investment. So far 2015 has seen over $2.3bn raised around the world. Menlo Ventures’ managing director, Venky Ganesan, said: “One of the very few times a CEO is fired is when you are exposed to a security breach. This will be the last thing cut on the budget because nobody wants to lose their job.”
Speaking about the ability for numerous cybersecurity firms to still emerge, Bain Capital Ventures’ managing director, Enrique Salem, said: “There is still tremendous opportunity to find some security companies solving hard problems.”
In 2014 global cybersecurity investments reached $2.5bn, topping the $1.7bn noted in 2013. Very few tech sectors manage to raise over $2.5bn each year; however, with $2.3bn already reached, it is likely that the cybersecurity industry will go beyond this figure. Research organisation Gartner said that spending on digital security measures is likely to grow from 2015’s predicted $77bn to around $108bn in 2019. This is because a large variety of sectors, including banks, retailers, hospitals and government agencies, are all attempting to safeguard themselves from constant threats.
These threats are expected to accelerate, with attacks becoming more numerous as offenders become more innovative and savvy in their operations. Bob Ackerman, founder and security expert at Allegis Capital, said that budgeting for cybersecurity spending is likely to increase as a result, regardless of economic movement. This certainly seems to be the case for many, with JPMorgan Chase & Co saying that its spending had doubled to $500m after a theft in 2014 leaked data about 83 million businesses and households.
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