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Rapid Cybersecurity Growth Is a Bubble, Billionaire CEO Says

  • Startups valued assuming ‘10 or 20 years of perfect execution’
  • Analysts want Check Point to boost sales growth as shares lag

A cybersecurity veteran whose company sits on a $4 billion cash pile says he won’t rush to acquire new startups, citing concerns of a bubble even as analysts warn that his firm faces an uncertain future.

Gil Shwed, chief executive officer of Check Point Software Technologies Ltd., said that the pace of growth in cybersecurity meant new firms were expanding at breakneck pace. High-profile hacks and a global shift to remote working helped startups raise $17.7 billion in venture capital funding in 2021 as of October 11 -- a 74% jump over all of 2020, according to PitchBook