Venture capitalists focusing more on cybersecurity: Survey

The percentage of venture capitalists who have had frequent cybersecurity conversations with their investors and board has more than doubled in the past year, according to a survey released Thursday.

The percentage increased to 83% this year from 41% in 2022, according to the online survey of 500 founders of venture capital-backed companies in the U.S. by San Francisco-based insurtech Embroker Inc.

The survey also found that the percentage of customers requiring it for their contracts quadrupled to 48% this year from 12% in 2022.

Asked how cyber insurance has helped their business, 47% said it has provided them with additional services to respond to a cyberattack; 43% said it eased their ability to secure funding; and 39% said it complied with a federal requirement.

A total of 78% said they have experienced a cyberattack this year, compared with 67% in 2022.

Half of respondents said their board requires evidence of cybersecurity measures, while 48% said their investors require it, and 33% said they are complying with a state or federal requirement.

Asked which factors will most impact their businesses in the coming year, 26% responded cyberattacks; 22% said responsibility for environmental sustainability/impact; and 21% responded disruptive technologies, such as artificial intelligence and machine learning.