With the severity of cyber attacks on critical infrastructure on the rise, venture capital investment in cyber-security firms is growing. There were $6 billion worth of deals in 2021, according to Preqin.
Of course, with this opportunity comes the threat. Investment managers will place an emphasis on cyber-security within the companies they invest in. Within their own industry, which has so many outsourced functions, the concern about attacks on third-party suppliers is high.
The 2020 hack on SolarWinds is “on many people’s minds” after investment funds were caught up in it, according to our cyber article. SolarWinds has forced firms to consider how they might be vulnerable through their supply chains, including trusted brand name software and hardware. The issue might also extend to fund administrators and custodians.
“It’s a vulnerable time,” says one contributor to our article. Cyber crime is becoming larger in scale and ever more sophisticated.
The New York State Department of Financial Services has even warned that the next major financial crisis could arise from a cyber attack.
Nick Fitzpatrick, Group Editor, Funds Europe
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