According to research firm CB Insights, venture firms invested $1.2 billion in cybersecurity startups in the first half of 2015, Wall Street Journal reports. While that number is slightly less than the $1.4 billion invested in the first half of 2014, it’s a significant departure from the $771 million invested in the first half of 2013, according to the report.
Some key investments include a $10.8 million round for Keybase, a company seeking to make encryption easier to use, and $100 million for Crowdstrike, which focuses on tracing Chinese and Russian hackers, according to the report.
However, Bob Ackerman, a managing director of Allegis Capital, told Wall Street Journal that such quick investments in cybersecurity startups is a business risk for investors, as every new security technology could become obsolete with just one data breach.
More articles on cybersecurity:
For healthcare companies, data security is a critical test
5 best cybersecurity practices from a CIO roundtable
More CIOs could face legal consequences following data breaches
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
