PB: Cybersecurity startups near record funding as hacks take spotlight

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PITCHBOOK writes:

A new generation of cybersecurity startups is scaling up to serve companies in the remote-work era as a fresh wave of sophisticated attacks spreads security fears.

Venture capital is flowing into cybersecurity companies at a torrid pace. Less than six months into the year, cybersecurity startups have raised $9.9 billion globally, 96% of the total raised in 2020, according to PitchBook data. Meanwhile, the average valuation of the companies raising funds has more than doubled, to $475 million.

The push to scale comes as digital security takes over boardroom deliberations. Ransomware attacks targeting Colonial Pipeline and beef producer JBS have shown how sophisticated hackers can bring large corporations to their knees.

“When the bad actors get in from a small opening, they can bring down the entire business operation of a large company,” said Ravi Mhatre, co-founder and partner at venture capital firm Lightspeed…

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