Throughout the coming weeks on the NVTC blog we’ll be sharing content from our inaugural Capital Cybersecurity Summit that took place on Nov. 2-3, 2016 at The Ritz-Carlton, Tysons Corner.
One of the Summit’s highlights was the Investment Capital for Cybersecurity Panel, which focused on how to raise sufficient capital to fund promising cyber technologies and applications. The discussion featured Crosslink Capital Venture Partner Matt Bigge, Bessemer Venture Partners Vice President Sunil James, Blackstone CISO Jay Leek and Paladin Founder and Managing Partner Michael Steed. Raymond James Managing Director and Co-Head of Technology & Services Stefan Jansen moderated.
Jansen’s opening question for the investor panelists, “What does it take for cybersecurity startups to matter?” brought to light two themes that emerged throughout the panel: (1) to attract and maintain investors, promising cyber businesses must be inherently committed to innovation; (2) the human capital side of cyber startups and the teams that drive them are as important as the technologies themselves for investors.
Steed shared that he looks to invest in cyber companies that are disruptive in the cyber space and filling a void that solves a distinct cyber problem. James noted that his organization looks for a vitality in startups – energy for innovation that inspires engagement in all ranks of the organization and is infectious.
Bigge noted that his most successful cybersecurity investments have been made in organizations with strong founding teams that are passionate about solving their customers’ problems. Leek agreed, stating that investing in a company’s management team is just as important as the technology itself. Leek encouraged promising cyber businesses to take a deeper look into the efficiency of their operations, a critical factor for investors.
Some of the other noteworthy investment factors panelists shared included:
- The importance of a quality and diversified revenue base for cyber startups
- Rising cyber businesses must be able to provide ROI for their products and services after their first year
- Cyber startups should have the ability to pinpoint opportunities for expansion within their existing customer base
View the full video from the Investment Capital for Cybersecurity Panel below and stay tuned for more Capital Cybersecurity Summit content here on the NVTC blog!
Investment Capital for Cybersecurity Panel Video:
Check out the Capital Cybersecurity Summit photo gallery!