“With great power comes great responsibility.” While the Internet driven startups are increasing at an unprecedented rate, the one thing which is also increasing at the same rate in the lurking privacy and security threats in the cyber space that come along with it.
This situation has given birth to a different set of startups altogether, named as the cybersecurity startups. According to data made available by Dow Jones VentureSource – a database keeping a close watch on companies all around the world receiving private equity and venture capital funding, about 12 cybersecurity startups have managed to raise $100 million or more in funding since the year 2014.
According to Industry experts, over the next five years, we will see hundreds of billions being spent in securing personal computers, corporate networks, mobile and IoT devices and the cloud. This would make the worldwide cybersecurity market skyrocket from a decent $75 billion in the year 2015 to a whopping $170 billion by the year 2020. Further, as compared to this, the Cybercrime costs are expected to witness a quadruple jump from the estimated cost of breaches last year to reach $2 trillion by the year 2019.
So, which all startups are ready to jump on the opportunity and cash on it? Well, if we answer the question on the basis of best funded cybersecurity startups, then it would be the following VentureSource listed 12 companies that according to them have been able to get $100 million or more in funding from VCs and corporate investors since the year 2014.
The combined funding of these 12 cybersecurity startups till date could stand at a staggering $4.5 billion or more.
- CloudFlare – A San Francisco based Website optimization and security startup.
- Crowdstrike – Based out of Irvine, Calif., Crowdstrike is a startup focused on data breach detection and its rightful prevention.
- Forescout – A Campbelll, California based cybersecurity startup, it is working towards Network and Internet of Things (IoT) security
- Illumio – Headquartered in Sunnyvale, California, Illumio is a Data center and cloud security startup.
Lookout- Based out of San Francisco, Lookout looks out for any Mobile security issue and fixes it with its risk management services.
- Netskope– A Cloud application security startup based out of Los Altos, California.
- Okta– It is a San Francisco based startup dealing with Identity access and management.
- Palantir – A Palo Alto, California based startup, Palantir is a startup enthusiastically in the domain of Data security and security analytics.
- Pindrop Security – It is a Call center and IVR anti-fraud startup based out of Atlanta.
- Tanium – An Emeryville, California headquartered startup, Tanium is an endpoint security and management startup.
- Tenable – This particular Columbia based tartup is focused on Network visibility, threat detection and its rightful prevention.
- Zscaler – A Cloud Security Platform based out of San Jose, California.
The only problem that we foresee right now is the stagnant IPO market. The year 2015 saw very few cybersecurity IPOs, and unfortunately, the situation has only worsened in 2016. In fact, the IPO score for cybersecurity is zero right now. Hence, it is time for all these above mentioned cybersecurity firms to tighten up their belt as IPOs are considered very crucial events for the investors.