Seed funding for Israeli cybersecurity startups has blossomed despite the economic downturn, and both deal volume and size have strengthened in 2022 as compared to 2021. The indefinite closing of the initial public offering market in spring 2022 caused late-stage investment to fall off a cliff.
Companies have taken a hatchet to their "innovation budget" amid economic headwinds, making it difficult for startups to hit their sales projections, said Momentum Cyber's Dino Boukouris. Long sales cycles for early-stage startups have resulted in them burning through cash faster than anticipated.
Europe's largest bank, HSBC, agreed on Monday to buy the United Kingdom subsidiary of Silicon Valley Bank, and Canada's government took control of SVB's Canadian branch late Sunday. Regulators have stepped in to reassure depositors, and at least two other regional banks are facing liquidity issues.
One top venture capitalist says the second-largest bank failure in U.S. history will make it harder for security startups to get loans and credit lines. For decades, SVB was one of the few institutions willing to extend money to early-stage firms that got the cold shoulder from traditional banks.
An overview of the White House's spending blueprint for the coming federal fiscal year shows big proposed increases for cybersecurity. CISA would receive $145 million more that current amounts. Ukraine would receive hundreds of millions to counter "Russian malign influence" including in cyberspace.
SMEs recognize the need to increase their cybersecurity spend, but limited resources can make them uncertain about which tools to invest in, says Matt Aldridge, principal solutions consultant at OpenText. He explains why a comprehensive approach is key to achieving and maintaining cyber resilience.