Cybersecurity Funding Reaches All-Time High Amid COVID-19

Cybersecurity funding jumped to an all-time high last year, driven by an increase in security events during the COVID-19 pandemic.

That’s according to Crunchbase’s Rise Of Global Cybersecurity Venture Funding report. Other driving factors include remote work and companies moving operations online.

Despite the pandemic, 2020 was a record year for cybersecurity investments, with more than $7.8 billion invested in the industry globally.

Hank Thomas is CEO of Strategic Cyber Ventures.

Strategic Cyber Ventures’ Hank Thomas

“Clearly we have had an unprecedented, rapid and unexpected experiment, quickly turned movement, to a decentralized workforce,” he said. “This has forced cybersecurity strategists and operators to move and create new security controls that protect these now more heavily used communications paths, as well as the places people are increasingly storing data and running analytics. Cloud security, identity and access management (IAM), endpoint security, and extended detection and response (XDR) are four of the big winners if you follow the money.”

New cybersecurity startups capitalized on the opportunity from remote work, and venture capitalists flooded the industry with new funding.

About 1,500 cybersecurity companies globally have received venture funding since 2017 and have not yet emerged from stealth. About 58% are seed-stage companies, 32% are in early stage and 10% are in late stage.

Scroll through our slideshow above for more statistics and commentary on this funding rush. Charts courtesy Crunchbase.