Cybersecurity startups with strong support from investors are set to disrupt the domain with their pioneering technology and unique solutions. Whether to automate tasks or assist companies in application security & data security startups are harnessing the disruptive power of cybersecurity to capture opportunities in all the sectors. A raft of innovative cybersecurity startups with cutting-edge expertise spanning sectors is predicted to become tomorrow’s unicorns.
Right from the network and data security to identity management and unified threat management (UTM), startups continue to develop and offer solutions that help identify vulnerabilities, thwart attacks, and secure the network. As we enter the code war era, where every digital device, no matter how small, can be “weaponized”, besides the proliferation of cyber-attacks globally, cybersecurity startups find favor with investors and attract considerable investment. COVID-19 provided tailwinds to the sector, as companies embraced the remote work model. With cloud-based backup becoming the place of choice to save applications and data, a range of new threats is likely to emerge, which would make an investment in cybersecurity a necessity.
What are the market dynamics for future unicorns in cybersecurity?
Cybersecurity startups have generated huge interest in VCs throughout with a significant increase in deal volume in 2019. ‘Cybersecurity’ is increasingly being mentioned in Corporate Filings, as a result of an increase in the number of companies mentioning it. sectors such as technology media & telecom (TMT) and financial services have shown a significant increase in cybersecurity-related active jobs in recent quarters; however, sectors such as aerospace and defense are catching up fast.
Positive sentiments in news, an increase in VC deals clubbed with substantial growth in patent filings and growing cybersecurity mentions in company filings indicate that the cybersecurity sector is of considerable interest to both VCs and corporates. VC investments in cybersecurity increased considerably in Q2 2021 owing to the initiatives of Startups such as Transmit, Andurill, Trulioo and Forter, which raised VC funding in the range of $300 -550 million.
The 10k top startups in the Scorecard are spread over 70 countries with the US accounting for half of them, followed by China. In Q2 2021, the industry reported investment in excess of $8.1 billion spanning 209 deals globally, with North America (primarily the US) accounting for over 58% of the deals valued at $6.1 billion, followed by Europe accounting for 17% of the total number of deals. MENA region accounted for around 10% of the deals, primarily including cybersecurity startups based in Israel.
The critical sectors in the startup universe include TMT (55%), pharmaceuticals and healthcare (11%), financial services (7%), and retailing (4%), followed by other sectors.
Market report scope
|Companies Covered||Abnormal Security, Onapsis, Varmour, BetterCloud, Very Good Security (VGS), Guardicore, Cynet, Deep Instinct, Ironscales, Arkose Labs, Siemplify, Swimlane, Virsec, and ZeroFOX.|
- Based on GlobalData’s proprietary ranking of 10,000 top startups, 126 Cybersecurity startups globally are shortlisted, of which 50 Cybersecurity startups are predicted to become future unicorns based on GlobalData’s proprietary Machine Learning Model. The 10,000 top startups are spread over 70 countries with the US accounting for half of them, followed by China. Critical sectors in the startup universe include TMT (55%), Pharmaceuticals and Healthcare (11%), Financial Services (7%), and Retailing (4%), followed by other sectors.
- Predicting Future Cybersecurity Unicorns by combining Startup Scorecard and Machine Learning model using 3 broad Patenting, Hiring and Investments trends in Cybersecurity Startups over the years. Unicorn Prediction came out to be true in recent years.
Reasons to Buy
GlobalData’s Potential Unicorns list offers early predictive intelligence and enables us to spot tomorrow’s winners today. The model identifies venture-funded companies which have the potential to become unicorns (a valuation of at least $1 billion) driven by GlobalData’s proprietary machine-learning algorithm which decodes millions of interactions between key deal attributes.
Very Good Security (VGS)
Table of Contents
Table of Contents
1 Cybersecurity Landscape
1.1 VC investment trend in Cybersecurity
1.2 Cybersecurity investment by stage of startups
1.3 Cybersecurity regional investment activity
1.4 Cybersecurity Patent Trends
1.5 Cybersecurity Hiring Trends
1.6 Cybersecurity Company Filing Analysis
2 Future Cybersecurity Unicorns
List of Tables
List of Tables
Top Ranked Cybersecurity Startups, Startup Scorecard: Sample View
Frequently Asked Questions
The report covers regions including North America, Asia-Pacific, Europe, Middle East & Africa, and South & Central America.
North America had the highest number of cybersecurity related investment deals in Q2 2021, followed by Europe, Asia-Pacific, Middle East & Africa, and South & Central America.
Major unicorns in cybersecurity theme include Abnormal Security, Onapsis, Varmour, BetterCloud, Very Good Security (VGS), Guardicore, Cynet, Deep Instinct, Ironscales, Arkose Labs, Siemplify, Swimlane, Virsec, and ZeroFOX.