Cyber Snapshot: Venture Capital Investment

Since 2021 the number of active investors has dropped by 45%, and VCs are certainly being wary with their fundraising efforts. Startups can’t afford for the VCs to be cautious however. Silicon Valley Bank estimate that by Q4 around half of US VC-backed startups will be out of cash if they don’t raise before then. That’s the highest levels since 2019.

Yet as we settle into H2 2024, there appears to be cause for optimism. The expectation is that as the wider market accelerates, as it has over the last few months, VC confidence will increase, with Seed and Series A tech deals likely to bounce back. Indeed, from what we’ve seen from our partners, Seed and Pre-Seed capital investment in particular in cyber security is certainly on the rise.

Many VCs are now in a strong position with enough built up cash reserves to be more strategic with their investments; ensuring they can capitalise on the right companies at the right time and with the right people. We’ll all be keeping a close eye on the market to see what happens!