Security Technology Average Funding Is On An Upward Trend

For this quarter’s funding analysis, let’s examine how average funding in the security technology sector is evolving. The graphic below shows the security technology average funding across all deals over time by quarter.

Security Technology Average Funding Deal Size
Security Technology Average Funding Deal Size

As the graphic demonstrates, security technology average funding deal size in Q1 2019 was at $29M, which increased by 53% from the $19M in the same quarter last year. The average funding deal size has experienced slight growth, with the average funding last quarter approximately on par with the average funding 5 years ago. The top three funding events in Q1 2019 include a $261M round into Rubrik, a $150M round into Cloudflare, and a $100M round into OneLogin.

To learn more about our complete security technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Security Technology Sector Overview – Q1 2019

This blog post examines the different components of the security technology ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.

Threat Detection and Mitigation Is The Largest Security Technology Category

Let’s start off by looking at the Sector Map. We have classified 1219 security technology startups into 14 categories. They have raised $36B from 1856 investors. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Security Technology Logo Map
Security Technology Logo Map

We see that Threat Detection and Mitigation is the largest category with 296 companies. These companies monitor networks to detect and mitigate cyber attacks. Some example companies in this category include Darktrace, Cylance, Vectra, and Menlo Security.

Let’s now look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.

The Pioneers Quadrant Has the Most Security Technology Categories

Our Innovation Quadrant divides the security technology categories into four different quadrants.

Security Technology Innovation Quadrant
Security Technology Innovation Quadrant

We see that the Pioneers quadrant has the most number of security technology categories at 9, accounting for 64% of all security technology categories. The Email Security category has the highest average age, and the Endpoint Security category has the highest average funding. On the other hand, the Brand Protection and Identity Security categories are low on both average funding and age.

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Security Technology Report Highlights  – Q1 2019

Here is our Q1 2019 summary report on the security technology startup sector. The following report includes a sector overview and recent activity.

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Threat Detection Leads Security Technology in Number of Investors

The security technology industry has seen 1,823 investors and $34B total all time funding. Let’s analyze which security technology categories have the most number of investors actively financing the startups. The graphic below highlights security technology categories based on the number of investors in each category.

Security Tehnology Investors Per Category
Security Technology Investors Per Category

As the graphic demonstrates, Threat Detection has the highest number of investors at 728, with Identity Security right behind at 669. In addition, the average number of investors across all security technology categories is 303. Threat Detection companies actively monitor networks to detect attacks and mitigate them in real-time. Identity Security companies authenticate identities, approve access within systems, and monitor activities to prevent fraud.

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Security Technology Investors With the Most Activity

The security technology industry has seen $34B in total all time funding. Let’s examine the investors financing the security technology sector and identify the most active firms.

The graphic below highlights security technology investors based on the number of investments made in the sector. If an investor participates in two investment rounds in the same company (such as a Series A and Series B), that would qualify as two investments for this analysis.

Security Technology Investors with Most Investments
Security Technology Investors with Most Investments

As the graphic demonstrates, Accel has made the most investments in the security technology sector with 73 investments. Sequoia Capital follows with 65 investments. Examples of companies that Accel has invested in include CrowdStrike, SimpliVity, and Netskope. Intel Capital and Dell Technologies Capital are notable Corporate Venture Capitalists (CVC) on the list.

To learn more about our complete security technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Security Technology Report Highlights  – Q4 2018

Here is our Q4 2018 summary report on the security technology startup sector. The following report includes a sector overview and recent activity.

To learn more about our complete security technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Security Technology Sector Overview – Q3 2018

The security technology sector has seen a lot of funding momentum in recent years. This blog post examines the different components of the security tech sector and how they make up this startup ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.

Threat Detection and Mitigation Is the Largest Security Technology Category

Let’s start off by looking at the Sector Map. We have classified 1155 security technology startups into 14 categories that have raised $30 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Security Technology Sector Map
Security Technology Sector Map

We see that Threat Detection and Mitigation is the largest category with 285 companies. These companies monitor networks to detect and mitigate cyber attacks. Some example companies in this category include Darktrace, Cylance, Vectra, and Menlo Security.

Let’s look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.

The Pioneers Quadrant Has the Most Security Technology Categories

Our Innovation Quadrant divides the security technology categories into four different quadrants.

Security Technology Innovation Quadrant
Security Technology Innovation Quadrant

We see that the Pioneers quadrant has the most security technology categories with 7. These categories are in the earlier stages of funding and maturity. The Established quadrant has 3 categories that have reached maturity with less financing. The Heavyweights quadrant also contains 3 categories. These categories have reached maturity with significant financings. The Disruptors quadrant has Cloud Security as its one category, which has acquired significant financing at a young age.

We’ve analyzed the security technology categories and their relative stages of innovation. Let’s now look at how they stack up against one another in terms of their total funding versus company counts.

Threat Detection and Mitigation Startups Have the Most Funding

The graph below shows the total amount of venture funding and company count in each category.

Security Technology Total Category Funding
Security Technology Total Category Funding

As the above graphic implies, the Threat Detection and Mitigation category leads in total funding with $10.5 billion. Its funding is almost 1.6 times the funding of the next category, Data Security with $6.6 billion.

Conclusion: The Threat Detection and Mitigation Category Leads Security Technology

The analysis above highlights that the Threat Detection category currently leads the sector in both total companies and total funding as well. We’ll see if any other categories will catch up and take the lead during the rest of 2018.

To learn more about our complete security technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.