At $300 million, Trident Capital Cybersecurity says its new venture capital fund is the largest ever dedicated to one thing, and one thing only — cybersecurity.
As hacks become increasingly common and increasingly scary (remember Yahoo’s two massive data breaches?) cybersecurity is getting hotter and hotter.
VCs firms invested in a record number of cybersecurity startups last year, according to CB Insights data reported by Bloomberg. They poured $3.1 billion into 279 startups in 2016, compared to $3.7 billion in 272 startups the year before, and $833 million in 117 startups in 2010.
The number of U.S. data breaches reported also jumped up 40 percent last year — hitting a record high of 1,093, according to a report by nonprofit Identity Theft Resource Center and CyberScout.
The sector also is getting extra attention as the country waits for an expected executive order on cybersecurity to come down from the White House. The Washington Post reported on a draft of the order last month, describing it as a six-page document that, unlike many of the president’s policies, seems fairly uncontroversial. But on Monday, as The Hill reported, cybersecurity aficionados were still waiting.
Trump’s order, if executed, would call for a review of cyber capabilities and vulnerabilities, according to the Post. On his website, Trump vows to create a Cyber Review Team to review U.S. cyber defenses and vulnerabilities, instruct the Department of Justice to create a task force to coordinate federal, state and local responses to cyber threats, and to “develop the offensive cyber capabilities we need to deter attacks.”
All those reasons are why Trident Capital Cybersecurity is all cybersecurity, all the time.
“Cybersecurity is a phenomenal investment area because companies need to fight back against hackers that are already inside the perimeter,” Don Dixon, managing partner of the firm, wrote in a news release. “Moreover, unlike most enterprise software, continually enhanced solutions are required because aggressors are always changing their tactics.”
Photo: Cybersecurity is a growing industry as hacks become increasingly common. (AP Photo/Damian Dovarganes, File)