From: RegTech Analyst
Cybersecurity company CrowdStrike has seemingly proven just how paramount digital defences have become as the coronavirus pandemic has forced businesses to accept remote working as the tech company’s stocks jump.
On Wednesday, CrowdStrike’s stock closed at $98.10, almost at the record high seen on August 13, 2020, according to MarketWatch.
The news comes as after CrowdStrike reported its first adjusted quarterly profit ever, surprising Wall Street, and hiked its outlook for the year on the back of strong sales and subscriptions as millions work remotely due to the COVID-19 pandemic.
This is another example how RegTech companies focusing on building strong digital defences are bound to be able to pick few wins as cybersecurity becomes more important during the crisis.
Part of the reason this could benefit the segment of the industry is due to remote raises the risk of the company suffering a cyberattack. The attack surface is bigger and many people may not have the same strict digital defences at home as they would have in the office.
Remote working could create an opportunity for cybersecurity startups. This segment has been one of the biggest beneficiaries of investment in the industry for years. In 2018 it attracted 20.7% of all the investment and in 2019 that figure jumped to 37.2%, according to RegTech Analyst’s research. The compliance management and the identity verification sector respectively attracted 18% and 13.6% of the total RegTech funding.
Additionally, the health crisis has also meant that cyber criminals has upped their efforts to launch hack attacks against businesses, something RegTech Analyst has reported on in the past too.
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