Here is our Q1 2018 summary report on the security technology startup sector. The following report includes an overview, recent activity, and a category deep dive.
Our security technology report and research platform contains companies that enable enterprises and consumers to secure their data and networks. They often focus on protecting information, authenticating identity, and defending against cybersecurity attacks.
In this post we examine the different components of security technology and how they make up this startup ecosystem. We have classified the companies into 14 categories. This blog post will illustrate what these categories are and which categories have the most companies. We will also look at how these categories compare with one another 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 for the security technology sector. As of March 2018, we have classified 1063 security technology startups into 14 categories that have raised $25 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Threat Detection and Mitigation is the largest category with 283 companies. These companies actively monitor networks to detect attacks and mitigate them in real-time. Some example companies include DarkTrace, Cylance, Menlo Security, and Vectra.
We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.
Most of the Security Technology Categories Are Pioneers
Our Innovation Quadrant divides the security technology categories into four different quadrants.
We see that the Pioneers quadrant has the most security technology categories with 9. The Pioneer categories are in the earlier stages of funding and maturity. The Disruptors quadrant contains two categories: Cloud Security and Computer Forensics. These two categories have acquired significant financings at a young age. The Established quadrant contains Industrial Security, which has reached maturity with less financing. The Heavyweights quadrant includes two categories: Endpoint Security and Email Security. These two categories have reached maturity with significant financing.
We’ve now seen the security technology categories and their relative stages of innovation. How do these categories stack up against one another? Let’s look at the Total Funding and Company Count Graph.
Threat Detection and Mitigation Startups Have the Most Funding and Companies
The graph below shows the total amount of venture funding and company count in each category.
As noted earlier, the Threat Detection and Mitigation category leads security technology with 283 companies. In addition, the above graphic highlights that Threat Detection also leads in funding with almost $10 billion. Some of the best-funded companies in this category are FireEye ($841M), Tanium ($581M), and Alert Logic ($387M). It’s also noteworthy that the funding in Threat Detection is 60% higher than the funding in the next category, Data Security.
Conclusion: The Threat Detection and Mitigation Category Leads the Sector
From the above analysis, we can see that the Threat Detection and Mitigation category leads security technology in funding and company count. On the other hand, Endpoint Security and Email Security stand out as the Heavyweight categories in our Innovation Quadrant. They have reached maturity with significant average funding per company versus other categories. It’ll be interesting to see how the security technology landscape will change and develop throughout the rest of 2018.
Our sector maps are snapshots of emerging technology sectors. They show what the different categories in a sector are and how many startups are within each category. They also present a small sampling of the current startups that are innovating in each category.
Last week, we kicked off our sector map update with Part 1. You can read that blog post here.
This post is the second of a two-part series. Below you will find sector maps for Artificial Intelligence, Internet of Things, Marketing Technology, Real Estate Technology, Retail Technology, Security Technology, Transportation Technology, and Virtual Reality.
Artificial Intelligence: 13 categories, 2161 companies, $32B in funding
Internet of Things: 20 categories, 2151 companies, $52B in funding
Marketing Technology: 15 categories, 1771 companies, $33B in funding
Real Estate Technology: 12 categories, 1649 companies, $48B in funding
Retail Technology: 21 categories, 1746 companies, $59B in funding
Security Technology: 14 categories, 1063 companies, $25B in funding
Transportation Technology: 17 categories, 1238 companies, $117B in funding
Virtual Reality: 13 categories, 750 companies, $10B in funding
The following graph shows average and median age in the Security Technology sector. The graphic includes data through July 2017.
The above graph summarizes the average age and median age of companies in each Security Technology category. The Email Security category has the highest average age at around 13 years and the highest median age at around 14.5 years. The Endpoint Security category is the runner-up with an average age of around 12 years and a median age of around 10 years. On the other hand, Threat Detection is the youngest Security Technology category with an average age of 9 years and a median age of 6.5 years.
We are currently tracking 1006 Security Technology companies in 14 categories across 42 countries, with a total of $22.7 Billion in funding. Click here to learn more about the full Security Technology market report.
The analyses below summarize where Security Technology innovations are occurring. The graphics includes data through July 2017.
The above map shows the number of Security Tech companies located in different countries. The United States ranks as the top country with around 525 companies.
The above map shows the amount of total Security Tech startup venture capital funding in different countries. The United States has the most VC funding at around $16B.
We are currently tracking 996 Security Tech companies in 14 categories across 42 countries, with a total of $21.9B in funding. Click here to learn more about the full Security Technology market report.
The following graphs highlight recent trends in the Security Technology startup funding activity. The graphics include data through July 2017.
The above graph summarizes the total funding raised by Security Tech startups for each year. 2015 has the most funding to date at around $3.9B.
The above graph summarizes the total amount of funding raised by Security Tech companies founded in a certain year. Companies founded in 2013 have raised the most funding at around $2.1B.
We are currently tracking 977 Security Tech companies in 14 categories across 42 countries, with a total of $21.3 Billion in funding. Click here to learn more about the full Security Technology market report.
The following graph shows the founding year distribution in the Security Technology sector. The graphic includes data through July 2017.
The above graph summarizes the number of Security Technology companies founded in a certain year. 2014 ranks at the top with around 119 companies founded. 2013 follows as the runner-up with about 101 companies founded in that year.
We are currently tracking 977 Security Technology companies in 14 categories across 42 countries, with a total of $21.3 Billion in funding. Click here to learn more about the full Security Technology market report.