Venture capitalists are scaling up their investments in cybersecurity thanks to advances in artificial intelligence (AI) and increasing cases of data security breaches.

According to data collected by Tracxn, Indian cybersecurity startups over the past two years have accumulated capital inflows of about $130.7 million, up nearly 63% from the previous two years.

With the explosion in technological innovation compounded across many sectors in India and around the world, data and security breaches continue to be a cause of concern for companies and individuals, which has encouraged investors to invest more proactively.

VC firm Accel is currently investing in its seventh fund, with a scale of $650 million, and has invested from this fund in five companies in the field of cybersecurity, said Prayank Swaroop, partner at Accel. “Cybersecurity is an important area of investment for us globally and in India we have significantly increased the number of investments over the last two years. This will also continue to be a priority area for 2024."

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