Bob Ackerman, Ted Schlein, Asheem Chandna, Alberto Ypez
Cybersecurity has moved to the front pages of American's newspapers, the Halls of Congress, the White House and the Board Rooms of major corporations. These dynamics continue to drive the demand for innovative technologies as electronic threats to computer networks and intellectual property have exploded in recent years. With the stakes high, government and corporate customers are stepping up their investments in defensive technologies and preventative measures to secure their digital frontiers.
Global cybersecurity spending is expected to top $60 billion this year according to the Cyber Security M&A Report by PricewaterhouseCoopers. The 172 US critical infrastructure organizations surveyed in a study by Bloomberg Government and the Ponemon Institute said that they currently spend $5.3 billion on cybersecurity and estimated that they would have to spend $46.6 billion over the next 12 to 18 months to reach a level of security where they could stop 95% of cyberattacks. Additionally, the Homeland Security Department would sharply raise spending for cybersecurity under the White House 2013 budget request to $769 million, up from $459 million this year.
In 2011, there were 150 security-related M&A deals, including Intel's $7.7 billion acquisition of McAfee and Hewlett-Packard's $1.6 billion acquisition of ArcSight, up from 69 deals in 2007. In response to growing customer spending as well as related M&A activity, the venture capital investment community is actively engaged in developing the technologies at the forefront of this battle.
Bob Ackerman, Founder and Managing Director, Allegis Capital
Ted Schlein, Managing Partner, Kleiner Perkins Caufield Byers
Asheem Chandna, Partner, Greylock Partners
Alberto Ypez, Managing Director, Trident Capital
Security Innovation Network (SINET) IT Security Entrepreneurs' Forum (ITSEF 2012)