Security News > 2020 > October > Early Stage Investment in Cybersecurity Shows Signs of Stabilization
Early stage venture investment in cybersecurity has apparently started to stabilize in the third quarter of 2020, according to Washington, D.C.-based cybersecurity venture capital firm and incubator DataTribe.
A report published by DataTribe in March revealed that the number of early stage investments in cyber had declined in the first two months of 2020 compared to the same period of the previous year, but noted that the drop was likely not caused by the COVID-19 pandemic, arguing that it typically takes up to two quarters to close an investment.
The increased interest from investors in cybersecurity is likely driven by many employees working from home and organizations looking to adapt their cybersecurity systems to this trend.
DataTribe says cybersecurity accounted for 19% of all early venture deals in the United States in the third quarter, up from roughly 15% in the previous quarter.
"As well, cybersecurity investment activity appears to be more resilient than other sectors. This relative durability in cyber investing has contributed to a steady increase in the proportion of all early-stage deals that cyber represents."