Security startups strive on IoT, attract venture capital

According to market research firm Lux Research, venture capital investment in cyberphysical security startups rose 78% to $228 million in 2015, and will rise to $400 million in 2016 as rapid adoption of the Internet of Things (IoT) raises the threat to products such as connected cars, smart homes and future factories.

By Julien Happich, EETimes, May. 18, 2016 – 

As organizations begin to connect their internal processes and machines to the Internet, security remains weak on account of multiple factors including cost and the lack of adequate solutions, notes the market research firm, expanding the landscape of problems, adding to known risks and offering an even bigger market for security startups.

"Connected consumer and business products have begun flooding the market, but security has been an afterthought. The world now has to figure out how to secure the multitude of things that have recently become connected," says Mark Bunger, Lux Research Vice President and lead author of the report titled, " Cybersecurity Venture Investment in Pervasive Computing and in the IoT ."

"Unlike the hacking of credit card numbers and Hollywood feature films, these attacks have more dangerous consequences and threaten the integrity of critical infrastructure," he emphasizes.

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