The 2026 investment landscape remains hungry for Digital and Telecoms infrastructure. However, an invisible wall has emerged when it comes to digital infrastructure trade deals.
According to the latest Investor Sentiment Report from S-RM, nearly two-thirds (65%) of investors have seen major deals fall through in the last three years due to a single factor: Cyber Security Risk.
This makes cyber threats the leading cause of deal failure in the sector, comfortably outstripping regulatory instability (41%) and geopolitical shifts (37%). Specifically, for the revenue leaders and innovators on The Growth Hub, this signals a massive shift in how “value” is calculated in the digital age.
Cyber Risk: The New Boardroom Gatekeeper
The data shows that cyber risk is now the most influential factor in investment decisions, cited by 76% of investors. Notably, this isn’t just about data breaches. Investors are looking deeper into the “nervous system” of businesses, identifying specific vulnerabilities that can devalue an asset overnight.
The Top Five Friction Points in Digital Deals
- Ransomware Exposure (58%): The fear of total operational paralysis.
- Network Security Weakness (52%): Vulnerabilities in the core “pipes” of connectivity.
- Supply Chain Vulnerability (47%): Risks inherited from third-party partners.
- Data Privacy (44%): The looming shadow of regulatory fines.
- Legacy Systems (39%): Outdated infrastructure that cannot be easily secured.
- The Paradox: High Risk, Higher Appetite
Despite the high failure rate of deals, the Digital & Telecoms sector remains the most attractive investment opportunity for the next decade. In fact, 79% of investors still rate it as their top pick, ahead of Energy (75%) and Social infrastructure (71%).
Consequently, we are seeing a “Budget Pivot.” Cyber security has officially become the top non-financial risk area receiving increased budget allocation. Ultimately, investors are moving from “avoiding risk” to “funding resilience” as a way to protect the future value of their portfolios.
Resilience is a Revenue Metric
In short, the S-RM report proves that in 2026, you cannot separate growth from security. Therefore, if your organisation is looking for investment or a strategic partnership this year, your cyber resilience isn’t just a box for the IT team to tick, it is your most important sales tool.
As Ian Massey, Head of Corporate Intelligence at S-RM, puts it: “Those who embed cyber resilience early in the investment lifecycle will be best placed to protect value.”
