It’s a herd mentality out on Sand Hill Rd. Over the past few years, VCs shied away from many infrastructure and security companies, preferring to bet on cloud computing, mobile computing, and social networking startups.
Now that these markets are saturated and somewhat stagnant, VCs have returned to the information security market like the swallows of Capistrano. According to PWC and the National Venture Capital Association, security funding in 2012 was up 60% over dollars committed in 2010. Judging by the crowds at the RSA Conference in February, I’m sure that VC investment will grow precipitously in 2013 as well.