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5 Pitfalls For Emerging Endpoint Security Vendors

Venture capital financing has flowed like a torrent into endpoint security startups, but a crowded IT security market and untested technology could derail some of those investments in 2015. Here are five threatening signs.

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Market Too Crowded For Vendor To Sustain Itself

Boulder, Colo.-based security vendor Symplified, which has raised nearly $50 million in VC financing, including raking in $20 million from investors in 2012, quietly shuttered its doors in July. RSA, The Security Division of EMC, acquired the firm’s assets in a fire sale. ’Investors don’t necessarily make the wisest investments when it comes to security,’ said Art Coviello, executive chairman of RSA, in remarks about the security market to reporters this week. There are a lot of factors that go into a security vendor’s success, Coviello said. Experts agree that Symplified was in a crowded market of cloud security brokers that have essentially the same capabilities. Symplified had an issue differentiating itself.

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