By many measures, the cybersecurity sector in general is doing fine, despite economic storm clouds on the horizon.
Due to recent high-profile ransomware and other cyber-attacks, private-sector and public-sector demand for cybersecurity products has never been greater. Spending remains high on security products and services – and many officials believe the security sector should fare better than other tech segments in the event of an economic downturn.
But that doesn’t mean everything is hunky-dory within the security sector. Like other publicly traded tech companies, security firms have lately seen their stocks pounded on Wall Street.
And the Wall Street drubbing has largely dried up the IPO market – a fact that has disrupted the plans of security startups and their investors in general.
In the short-term, many later-stage security startups are being told to pull back on their spending, as a way to preserve their cash until markets recover and IPOs become an option again.
The net result: Some cybersecurity startups have recently begun laying off workers.
The following are five later-stage startups that have recently reduced their payrolls amid uncertain economic times:
* Deep Instinct