Why VCs Should Invest in a Network of Security Leaders

Investing in a network of security leaders and professionals is becoming increasingly important for venture capital and private equity groups alike.

With the speed of change in this industry, these groups need to have access to the expertise and knowledge needed to protect their investments, their assets, and their ideas.

Curating a highly skilled network of security leaders has many potential positive impacts, such as protecting portfolio investments, keeping up with the evolving compliance landscape, and understanding buying trends.

Whether you work in the VC/PE space today or are just interested in the field, this post is a must-read.

The List

Here are the top 10 reasons why investing to build out a network of security leaders for your venture capital group is worth it:

1. The network can help VCs stay ahead of emerging security trends and developments, enabling them to identify and invest in the next big thing in security.

2. The network can provide VCs with valuable insights and expertise to help venture capital groups identify and manage potential security risks in their portfolio companies.

3. The network can help VCs ensure that investments are made in companies with strong security protocols and practices in place by supporting due diligence.

4. The network can help protect the reputation of VC groups by demonstrating a commitment to security.

5. The network can help VCs better understand the security needs of their portfolio companies and provide support as needed, including responding to incidents and breaches.

6. The network can help provide value-added services to VC portfolio companies, like security assessments, training, and consulting, which can help VCs generate additional revenue.

7. The network can help VC portfolio companies attract and retain top talent by offering a secure and stable working environment.

8. The network can add a layer of vetting for potential investment targets as experts who have been on the buy-side and who have had to “live with” technology decisions.

9. The network can help VCs establish a reputation as a thought leader and innovator in the security field, which can help them attract more investors and business partners.

10. The network can help build strong, lasting relationships with portfolio companies (remember the "value" in "value-add"), which can ultimately lead to better investment returns.

Wrapping Up

These certainly aren't the only reasons for VCs to build out a network for security leaders, but these are a few of the major ones.

What other reasons might VCs want to build out this kind of network? Let me know what you agree or disagree with and what I might have missed.

Cheers,

Mike P