Data Security

Optimism remains despite reduced cyber financing

SecurityWeek reports that cybersecurity market optimism remains high among investors despite a decline in cyber financing during the second quarter of this year. Cybersecurity stocks have dropped 25% during the first half of 2022, along with the decline in financing volume and deal counts, according to a report from Momentum Cyber. Meanwhile, a separate study from DataTribe showed that seed deal volumes and Series A deals during the second quarter of this year have decreased by almost 20% and 43%, respectively, compared with the same period last year. However, New York City-based venture firm Lytical Ventures was cited by the Momentum Cyber report to be not concerned regarding the downturn in investments. "Investing during a downcycle can be advantageous. Companies that can weather the downturns are often well-positioned to grow quickly during the recovery period," said Lytical. Similar sentiments were shared by DataTribe, which noted cybersecurity firms' increased resilience over other tech companies. "Big picture, we think this is a great time for cybersecurity investing. Public and late-stage private companies will be taking advantage of the environment to make good acquisitions, and keep up the flow of capital going to cybersecurity. Great cybersecurity companies will also be born," said DataTribe.

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