Although security breaches make the headlines regularly and Washington has plans to upgrade the security of the United States’ national infrastructure, up-and-coming IT security companies are having difficulty securing investment funds. The U.S. Defense Department plans to spend $500 million on researching new cybersecurity technologies, and the U.S. Department of Homeland Security is putting up $40 million to encourage research and development in the field. However, venture capitalists seem reluctant to fund new security companies.
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VCs and IT Security Firms: Not Much Love in the Air
Posted by: Richard Adhikari April 22, 2011 05:00 AMAlthough security breaches make the headlines regularly and Washington has plans to upgrade the security of the United States’ national infrastructure, up-and-coming IT security companies are having difficulty securing investment funds. The U.S. Defense Department plans to spend $500 million on researching new cybersecurity technologies, and the U.S. Department of Homeland Security is putting up $40 million to encourage research and development in the field. However, venture capitalists seem reluctant to fund new security companies.