As the Covid-19 pandemic continues to hobble economies around the world, cybersecurity is one of six sectors currently booming, with first quarter funding topping $1.5 billion.
That figure is close to a record high, according to Crunchbase Data Evangelist Gené Teare, who told SC Media that instead of seeing cybersecurity companies and VCs putting the breaks on after a strong fourth quarter in 2019, “trends in our data do not show a slowdown.” In fact, “a lot of the big firms are active in this space,” she said.
Deal count in the sector ticked up significantly in Q1 2020 from the previous two quarters, the Crunchbase Opportunity Index Report found. Nearly 80 percent of the 2020 deals were in seed- or early-stage, which the report said shows an “opportunity for more later-stage deals in the coming years.”
The U.S., Israel and the U.K. are leading the way, she said, with 75 percent of 2020 dollars raised to date have been for U.S.-based companies.
Not surprisingly Telehealth, Remote Meeting/Collaboration Software, Med/Biotech, Payments and Edtech joined cybersecurity as the top six sectors with overall financial services and healthcare making up 46 percent of all venture funding.
“Despite Coronavirus’ impact, each industry has surged in funding and shows signs of continued growth,” the report. “Investors recognize the impact these industries have on the current state of the world and, as a result, are investing in companies that align with the reality of the economy.”