Published On: Fri, Jun 5th, 2020

Top cybersecurity VCs share how COVID-19 has altered investing

The coronavirus pandemic is, though doubt, a biggest plea a universe has faced in a generation. But a wheels of a universe keep turning, despite slower than during normal times.

But where a universe has faced challenges, a cybersecurity attention stays mostly unscathed. In fact, some cybersecurity businesses are doing improved than ever given cybersecurity has emerged as one of a few constants we all need — even during a pandemic.

The immeasurable infancy of a tellurian workforce is (or has been) operative from home given a start of a lockdown, and a universe had to fast adjust. Tech companies pushed their record and services to a cloud. Businesses had to change from not only securing their bureau network though also preventing threats opposite their rarely distributed employees operative from their possess homes. And, hackers are retooling their attacks to be coronavirus themed, creation them distant some-more expected to succeed.

All of these things — and some-more — need security. Or, as one financier told us: “Many of these trends were already underway, though COVID-19 is an accelerant.” That’s helped cybersecurity firms continue a charge of this pandemic.

We spoke to a dozen cybersecurity VCs to hear their thoughts on how COVID-19 has altered a investment landscape:

  • Ariel Tseitlin, Scale Venture Partners
  • Shardul Shah, Index Ventures
  • Theresia Gouw and Mark Kraynak, Acrew Capital
  • Niloofar Razi Howe, Energy Impact Partners
  • Matt Bigge, Crosslink Capital
  • Sarah Guo, Greylock Partners
  • Deepak Jeevankumar, Dell Technologies Capital
  • Umesh Padval, Thomvest Ventures
  • Saam Motamedi, Greylock Partners
  • Alex Doll, Ten Eleven Ventures
  • Dharmesh Thakker, Battery Ventures

Here’s what they told us. (Answers have been edited for clarity.)

Ariel Tseitlin, Scale Venture Partners

Security budgets haven’t been influenced scarcely as most as broader IT spend. We continue to see existent portfolio companies lift follow-on financings, and we continue to accommodate with companies for new intensity investments. The large change in my criteria for new investments is that a association contingency be means to continue flourishing in a stream environment. We don’t know how prolonged this downturn will last, so we don’t buy into a guarantee of “as shortly as a economy recovers, expansion will resume.”

Shardul Shah, Index Ventures

On Microsoft’s final gain call, arch executive Satya Nadella said: “As COVID-19 impacts each aspect of a work and life, we have seen dual years value of digital mutation in dual months.” This acceleration has indeed combined movement for a series of cybersecurity businesses, that is because a best companies continue to pull poignant seductiveness from investors. we offer on a house of confidence organisation Expel, that lifted $50 million in a center of this crisis.

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