The Battle for Talent and Funding in the Cybersecurity Industry

A Q2 Update from Wolf Hill Group

How can and should you compete for Cybersecurity, operational, and commercial leaders at a time when talent and VC dollars are a premium? Early-stage and growth-stage companies don’t always have the capital to outbid their competitors, so they need to be nimble, savvy, and highly proficient in their talent procurement strategies.

The War for Talent Rages On

of Cybersecurity enterprises have unfilled positions.
of enterprises report experiencing difficulties in retaining qualified Cybersecurity professionals.
of Cybersecurity roles filled in 2022 took anaverage of three-six months to close.
And despite the current economic headwinds, there are still some interesting deals getting done in the Cybersecurity sector.
“Cybersecurity innovation is alive and well and Cybersecurity continues to be a spending priority for public and private sector institutions,” said Alberto Yepez, managing director, and co-founder at Forgepoint Capital.
As the digital risks facing all organization continue to escalate, so will the pressure for companies to hire top Cybersecurity talent to secure their data, systems, vendors, and customers. Building a culture of Cybersecurity is becoming a priority for organizations in all sectors – from fintech and healthcare to insurance and public utilities. No company is immune, and no leader is off the hook.  
Gartner Strategic Planning Assumptions
By 2026, at least 50% of C-Level executives will have performance requirements related  to Cybersecurity risk built into their employment contracts.  
By 2025, 60% of organizations will use Cybersecurity risk as a significant determinant in conducting third-party transactions and business engagements.
By 2025, 50% of Cybersecurity leaders will have tried, unsuccessfully, to  use cyber risk quantification to drive enterprise decision-making.  
By 2026, 30% of large organizations will have publicly shared environmental,  social, and governance (ESG) goals focused on Cybersecurity, up from  less than 2% in 2021.
By 2025, 40% of programs will deploy socio-behavioral principles (such  as nudge techniques) to influence security culture across the organization,  up from less than 5% in 2021.
Companies today in all sectors are also renewing their commitment to building diverse and equitable workplaces and fostering inclusive cultures where all members of the team feel valued, respected, and heard. DEI in Cybersecurity is more important than ever as leaders recognize the critical need to tap different backgrounds, identities, and perspectives when constructing their cyber defense strategies.
“It's more than black. It's more than race. We're looking at gender, we're looking at sexual orientation, we're looking at disability, but all of that starts with culture.”
-Candace Nortey
Managing Director of Diversity, Equity, & Inclusion
Slone Partners
Click here to watch Wolf  Hill Group’s recent “DEI in Cybersecurity” panel discussion.
Why is strong leadership so important? Because it can make all the difference between a startup that flounders and a startup that soars.  
“At the end of the day, our willingness to write a big check inevitably comes down to how we feel about the individual or team we are backing. Strong leadership qualities are imperative along with demonstrated perseverance, the ability to go the distance, self-awareness and humility, a monstrous sense of taking responsibility, off the charts’ honesty and integrity, and someone who people naturally gravitate to and want to be in the foxhole with.”
-Maria Cirino
Founding Manager Partner, .406 Ventures

Read the complete interview with Maria here.
This is the state of affairs in the Cybersecurity industry as we enter the second half of 2022. VC funding is still available for innovative start-ups and growth stage companies and the war for talent continues raging. It will be fascinating to watch how this evolves in the months ahead.
Sources:
Pitchbook
ISACA, The State of CyberSecurity report 2022
eSecurity Planet,
To learn more about Wolf Hill Group, contact Tara Kochis, Wolf Hill Group President at tara@wolfhillgroup.com
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