Foreign Investors not Interested in Asian Security Startups Anymore


Bangalore: Security startup companies in Asia are way behind the ones in United States in terms of technology and brand recognition. There is also stiff competition within Asia and with industry observers. According to a MoneyTree Report by PriceWaterHouseCoopers, security startups in the U.S. have gone for Initial Public Offerings, such as Palo Alto Networks, while some are becoming takeover targets by large companies, such as with EMC Corporation's acquisition of NetWitness.

ZDNet’s Ellyne Phneah looks into the reasons why these startups in the U.S. are becoming popular among investors, whereas their Asian counterparts are not deemed worthy of investments.

3. Brand and Image Obstacles

In Asia, there is a culture of not wanting to fail which means businesses here do not try security products without a good brand name. One very important reason it will be a long time before Asian security firms are able to catch up with their western counterparts.

Asian security startups may also not able to expand beyond their countries and get international acknowledgment since many governments, like the U.S., are concerned about possible Trojan viruses hidden within software programs so there will always be controversy surrounding them.