As cyberattacks surge, security startups reap the rewards

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Written by Erin Woo

As cyberattacks proliferated this year, Sanjay Beri, CEO of Netskope, a cloud security startup, got a phone call. Then an email. Then more messages.

All were from venture capitalists who wanted to invest in his company. Given the ransomware attacks and nation-state hacks that were making headlines, they told him, companies that made security products had a bigger market and mission than before.

“We weren’t looking for capital,” said Beri, who founded Netskope in 2012, but the cyberattacks “definitely increased their interest.”

After bids from seven investors, Netskope raised $300 million this month at a valuation of $7.5 billion, up from a $2.8 billion valuation last year. It was one of the year’s largest cybersecurity funding rounds, but not the maximum that Netskope could have attained.

“We could have raised $1 billion in capital,” Beri said.

Recent cyberattacks around the world have taken down…

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