CyberWire Daily Tech Investment Strategies and Overview [CISOP]
Dec 23, 2025
In this chat, John Funge, venture partner at DataTribe and a seasoned software engineer, sheds light on the intriguing world of cybersecurity investments. He dives into how VCs assess startups, highlighting team dynamics and market fit. John also discusses the tension between CISO needs and VC incentives, suggesting ways for better alignment. He emphasizes the importance of utilizing practitioner feedback for informed investment decisions and urges CISOs to actively engage with investors to foster meaningful security innovation.
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Rejected Identity Startup That Could Have Changed Fraud
- Kim describes a 2015 meeting where a VC rejected an Australian identity startup because it would 'destroy' other portfolio companies.
- The founder was discouraged and the startup folded, leaving a decade-long gap in solving that fraud problem.
What VCs Prioritize Over Pure Technology
- John says early-stage cyber investing weights team, market fit, and long-term defensibility more than pure tech.
- VCs look for founder-market fit and conviction that an opportunity can become a home run.
Prioritize Low-Friction Integration
- Evaluate how a startup's product integrates into real environments before investing or buying.
- Prefer solutions with low-friction deployment paths that can reach product-market fit within 18–24 months.