Early-stage cyber funding increases continue

Cybersecurity may have increased resilience in terms of investments, compared with other industries, according to SecurityWeek. Data from cybersecurity venture capital firm DataTribe revealed that cybersecurity seed and Series A investment size rose by 87% and 35% between the first quarter of 2021 and the first quarter of 2022, respectively, while valuations for seed deals and Series A agreements increased by 133% and 59%, respectively, during the same period. The report also showed that the ongoing conflict between Russia and Ukraine has affected 200,000 engineers in Russia, Ukraine, and Belarus, with 300,000 more Ukrainian engineers expected to be impacted. "Enterprises and ISVs are scrambling to backfill their offshore teams via other regions such as India and Latin America. This hits in addition to the staffing pressures caused by COVID-19 and the Great Resignation, making it very difficult to start new projects or expand teams. This displacement of talent will likely have an impact in all phases of software development for all sizes of organizations. Since outsourcing, in particular, is more affordable and flexible than hiring employees, startup innovation will slow," said the report.