Fewer face-to-face meetings between security startups and potential investors contributed to a steep decline in the number of venture capital deals since COVID-19 spread throughout the world. Investments in early stage cybersecurity companies fell by 37.7% during the second fiscal quarter of 2020, compared to the same time period in 2019, according to a financially-focused paper published Tuesday by venture firm DataTribe. It’s a downward trend that began at the end of last year and continued into the first months of 2020 as global economies reacted to the coronavirus pandemic. Early stage investments in the overall technology sector are down by roughly 45% over the first two quarters of this year, according to DataTribe co-founder Mike Janke. Other external factors — such as uncertainty about U.S. politics, shifting monetary policy and increasingly high investment levels — also are fueling the decline in investing. Venture deals typically close 90 days after […]
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