12 top cybersecurity VCs discuss investing, valuations and no-go zones

Cybersecurity is by far the most important area in any industry. Without it, we would be in hacker open season.

But cybersecurity is difficult to get right. One wrong move and you can leave the door open for data breaches, ransomware and nation state-backed espionage. That’s why there’s such an intense focus on cybersecurity from an investor’s point of view. How does an investor know what’s a worthwhile security solution and not snake oil? And in an already saturated security startup space, who can you trust to keep your company’s data safe?

These are just some of the questions we want answers to.

Every few months we check in with some of the leading investors in cybersecurity to gauge the heat (or chill) of the market, see what trends are making waves and understand some of the challenges in a busy startup world.

This time around, we spoke to a dozen cybersecurity VCs to hear their thoughts on what they’re most excited about, cybersecurity valuations (in the age of pandemic, no less), which companies are sparking investors’ interests and the kinds of startups that aren’t. (We also have a separate look at how cybersecurity VCs are investing during the COVID-19 pandemic, and how investors are weathering the global emergency. Be sure to check it out.)

For this survey, TechCrunch spoke to:

• Shardul Shah, Index Ventures
• Theresia Gouw and Mark Kraynak, Acrew Capital
• Niloofar Razi Howe, Energy Impact Partners
• Matt Bigge, Crosslink Capital
• Sarah Guo, Greylock Partners
• Deepak Jeevankumar, Dell Technology Capital
• Ariel Tseitlin, Scale Venture Partners
• Umesh Padval, Thomvest Ventures
• Saam Motamedi, Greylock Partners
• Alex Doll, Ten Eleven Ventures
• Dharmesh Thakker, Battery Ventures

Here’s what they said. (Answers have been edited for clarity.)