While the cyber security market in general maintained strength during the forced "work from home" associated with the COVID pandemic, the pace of new cyber investments slowed considerably as 1) venture capitalists focused on recalibrating their existing portfolio companies, and 2) the inability to meet new entrepreneurs face to face hindered new investment commitments.
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Cyber Security Investing Cools during COVID
Investments in early stage cybersecurity companies fell by 37.7% during the second fiscal quarter of 2020, compared to the same time period in 2019, according to a financially-focused paper published Wednesday by venture firm DataTribe.