Early concerns about the global coronavirus pandemic and the economic impact of business shutdowns appear to have had a negligible impact on the flow of venture capital investment in the cybersecurity industry.

A recent report by Crunchbase found that 2020 was a solid year for cybersecurity startups, despite the many challenges faced on several other fronts across the world. According to the findings, 2020 saw record levels of investment, with a combined $7.8 billion flowing into cybersecurity startups compared to $7.6 billion in 2019. This doesn't compare to the more than $2 billion spike between 2018 and 2019, but it does indicate that a post-pandemic business world is still sharply focused on developing and improving solutions for its cybersecurity challenges.

The short and long-term factors spurring these investments are can be understood in simple terms: media coverage of industries and governments under constant attack by nation-state actors and ransomware hacking groups, new security vulnerabilities from digital transformation initiatives spurred by the COVID-19 pandemic, and longer-term shifts to cloud all play a role.

“With cyberattacks continuing to threaten businesses and jeopardize personal privacy, cybersecurity remains not only a hot topic, but an imperative investment for any company, government, or organization,” the report states.