The accelerated technology development and digital transformation have resulted in increased cyber risks. As a result, organizations are growing aware of the need for proactive and robust cybersecurity solutions to prevent attacks. Today, there are nearly 3,000 security startups across the globe that are trying to change the way organizations look at cybersecurity. So, why should you invest in cybersecurity companies? In this article at The Register, Jeff Burt explains why organizations pour millions of dollars into security compliance startups.
Why Should You Invest in Cybersecurity Startups?
Organizations are overburdened with privacy laws (GDPR, CCPA, and HIPAA), sophisticated attackers, and complex attacks. With this in mind, security compliance startups proactively address the need for data protection by identifying the security gaps. Additionally, they also help companies manage their IT complexities, comply with new regulations, and minimize risk. Furthermore, aligning with security startups helps business leaders refine their strategic planning to make a more secure transformation to the cloud.
“The reality is that cybersecurity remains top of mind for investors, and compliance is yet another area for investors to express their interest in the industry. Specifically, investors love recurring revenue, and cybersecurity compliance is at the bullseye,” explains Burt quoting Shaun Gordon, co-founder and CEO at security vendor BreachQuest. According to studies, security startups raised over $29.5 billion in venture capital in 2021. Investors invested this record amount of money in more than 1,000 deals. Nearly 84 investments were greater than $100 million. Are you wondering how to wisely invest in cybersecurity firms?
How to Invest in Security Compliance Startups
High-profile attacks such as SolarWinds and Kaseya have demonstrated that one company’s security weakness can have a ripple effect up and down the supply chain. Therefore you must ensure your security service providers are:
Proactive in preventing damage before issues like malware and ransomware spiral out of controlRegularly monitor your social media accounts and watch for suspicious behaviors and postsHaving a security policy covering all the possible scenarios of a hackStaying on top of all existing and emerging threats
To read the original article, click on: https://www.theregister.com/2022/02/23/secureframe_security_compliance_investment/.
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