Executives across industries may not agree on everything, but one consensus is that even in an economic downturn, cybersecurity is indispensable. “Nobody is fully prepared for cyberattacks, not even the most powerful nations on earth,” explains Bessemer Venture Partners investor David Cowan. “Even the stuff that we think has been solved has to be solved again, which is why cyber risk is job security for VCs.”
Yet, while cybersecurity companies attracted a frenzy of cash from VCs in the fundraising heyday of 2021, not all startups are created equal. “I get asked the question all the time: Is cyber under-invested or over-invested? My answer is yes; it’s both,” Bob Ackerman, investor at Allegis Cyber explains. “There's a lot of indiscriminate investing. At the same time, the next generation of technology is grossly under-invested.”
