Venture capitalists' investment into cybersecurity companies has grown in 2018, hitting record numbers. This is according to a new report by Strategic Cyber Ventures, a cyber-security focused investment firm with four cybersecurity companies in its portfolio.
The report claims that $5.3 billion has flown into cybersecurity organisations last year – up from $4.4 billion the year before. Comparing the figures to 2016, the growth is 100 per cent.
Interesting thing about last year is that there were, in fact, less deals. However, they were also meatier. The world's eight largest companies grew larger, drawing in a total of $1.3 billion in funding.
North America is leading the charge, accounting for $4 billion in VC funding. Most of those funds ended up in California, where many of the largest cybersecurity companies have their headquarters. Washington, home to most of the country's government agencies, has pulled in roughly $300 million.
“As DC residents, we have to think there is more the city could do to entice cybersecurity companies to establish their headquarters in the city,” the firm said. “We’ve seen this trend in the broader tech ecosystem as well, with many, large international funds and investment outside of the U.S. Simply put, amazing and valuable technology companies are being created outside of the U.S.”
Across the pond and in the far East, Europe and China have somewhat similar figures, hovering around the $550 million mark each. Both are growing, though.
Image source: Shutterstock/Sergey Nivens