venture capital YL Ventures is doubling its support for Israeli security companies through a new $400 million fund V, which will invest specifically in Israeli security companies. what will the money be used for the company says It is the largest seed fund created for cybersecurity. The fund plans to invest in the foundations of 10 startups three times a year.
“We only invest in Israeli early-stage cybersecurity companies,” said John Brennan, a partner at YL Ventures with offices in Mill Valley, California and Tel Aviv, Israel. Brennan said YL Ventures is deeply involved in the operations of the companies in which they invest.
“Our main differentiator as an investor is that you want to be deeply involved in the weeds that provide operational support for our founders and many of them have to come to market.”
Brennan said the focus on security companies has to do with the direction of the market. Brennan said: “From a business perspective, we’re looking at the trends in the market, so the business drives where the market goes,” said Brennan. “The industry is under pressure,” he said.
“We’re going to argue that things are getting more and more complicated, and that’s actually why we as a company decided to double and triple a few examples.”
A major factor in this increasing complexity, Brennan said, is the cloud. “But few of these macro trends force businesses and small businesses to think more about data security and the risks associated with it,” Brennan said. “So big companies no longer think of it as oil and as an ability to generate revenue and generate revenue. But there’s a lot of sensitive data, it’s spread across the organization, and in reality you have a pretty complex ecosystem.”
no silver bullets
“In many other parts of the organization, including security stakeholders, IT stakeholders, engineering stakeholders, privacy stakeholders, etc., we are thinking about where the risks associated with this data will lie and how the environment will become more complex, more robust and diverse. “The more tangible you are, the more opportunities there will be for startups and data security, and the area they will focus on is probably not the silver bullet.”
The absence of a “silver bullet” means that organizations will find themselves forced to adopt small, specialized companies that can help mitigate the risks associated with sensitive data.
Brennan said the increased complexity coupled with what he calls the cloud’s sprawl tends to force enterprises to use legacy solutions that don’t translate well to the cloud. As a result, organizations often don’t even know where their data resides, and find they can’t protect what they can’t see.
To make matters worse, Brennan said that even the best tools for protecting sensitive data degrade over time.
“You have to think about the best solution,” Brennan said. But he added that he couldn’t trust any kind of grace egg because security is so dynamic. He said security will always be complicated.