Connected cars, smart homes, future factories, and intelligent cities offer huge new opportunities – for malicious actors. As computing pervades every area of personal and industrial space, vulnerabilities arise faster than firms can find and patch them, so venture capitalists are investing in new cyberphysical security entrants with new solutions - reaching $228 million in 2015, up 78% from the prior year. We expect investment to increase significantly, to as much as $400 million in 2016, as the landscape of problems and proposed solutions is still expanding, along with known risks that can’t currently be closed. Israel’s security innovation cluster has been the source of several leading technologies, and should figure into any firm’s IoT security strategy.
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