Security Technology Market Overview and Innovation Quadrant – Q1 2017

The following post highlights how Venture Scanner categorizes the Security Technology startup landscape, and presents our Innovation Quadrant showing how those categories compare to one another. The data for this post is through February 2017.

Security Technology Q1 2017 Logo Map

The above sector map organizes the sector into 14 categories and shows a sampling of companies in each category.

Security Technology Q1 2017 Innovation Quadrant

Our Innovation Quadrant provides a snapshot of the average funding and average age for the different Security Technology categories and how they compare with one another.

  • Heavyweights: These categories are comprised of companies that have reached maturity with significant financing.
  • Established: These categories are comprised of companies that have reached maturity with less financing.
  • Disruptors: These categories are comprised of companies that are less mature with significant financing.
  • Pioneers: These categories are comprised of companies that are less mature with earlier stages of financing.

The definitions of the Security Technology categories are as follows

Application and Source Code Security: Companies that scan application and program source codes for potential loopholes. Examples include runtime application security, application performance management, and application assessment.

Brand Protection: Companies that protect the public image of brand’s presence on the internet. Examples include reputation management, domain name monitoring, and social media attacks mitigation.

Cloud and Hosting Server Security: Companies that provide security solutions that protect hosting servers from being attacked. Examples include security solutions for cloud applications, third-party cloud services, cloud infrastructure, and cloud data files.

Computer Forensics: Companies that monitor and investigate computer usage for criminal investigation or evidence acquisition. Examples include internet usage monitoring, employee behavior monitoring, and online parental control.

Data and Information Security: Companies that help protect electronic data from unauthorized external access or threats. Typical use cases include data leakage prevention, file-based security, information assurance, and work data encryption.

Email Security: Companies that focus on providing security solutions for email platforms. Examples include anti-spam solutions and anti-phishing solutions.

Endpoint Security and Firewalls: Companies that provide security solutions that protect the devices connected to the network, as opposed to the network itself and the servers. Examples include anti-virus programs, firewall, anti-malware programs, system cleaner/backup programs, and other computer utility tools.

Identity and Fraud Security: Companies that authenticate identities, approve access within a system, and monitor activities to prevent fraud. Typical use cases include detection analytics, password management, security tokens, and digital identity management.

Infrastructure and Industrial Security: Companies that protect critical infrastructure and industrial operations such as power plants, electricity grids, water systems, and highways. Typical use cases include security against terrorism, information warfare, and natural disasters.

Mobile Security: Companies that protect smartphones, tablets, laptops and other wireless devices from threats associated with mobile computing. Examples include proactive mobile protection, lost device management, and predictive intelligence.

Risk Assessment and Compliance: Companies that assess the security level of enterprise networks and ensure that they comply with governmental and industrial standards. Examples include companies that conduct penetration tests, ethical hacking, and compliance management.

Security Hardware: Companies that produce hardware components for digital security purposes. Examples include cloud key USBs, VPN routers, and controller access points.

Security Intelligence and Analytics: Companies that collect data and provide actionable analytics on network security and potential threats. Examples include threat intelligence and security predictive analytics.

Threat Detection and Mitigation: Companies that actively monitor your network to detect attacks and help mitigate them by responding in real-time. Examples include threat monitoring, vulnerability scans, and network hardening.

We are currently tracking 853 Security Technology companies in 14 categories across 41 countries, with a total of $16 Billion in funding. Click here to learn more about the full Security Technology report and database.

Security Technology Funding by Round – Q1 2017

The following two graphs summarize the rounds of funding going into the Security Technology space. Please note these graphics are made using 2017 data through February.

security-technology-funding-by-amount
Security Technology Funding Amount by Round

The graph above shows the total amount of VC funding broken out by round. From 2006 to 2015, we saw a general increase in the overall sector funding, with the total amount peaking in 2015. Series A, B, and C funding rounds make up the majority of the funding amount. After 2015 the overall sector funding saw a sharp decline.

Security Technology Funding Count by Round
Security Technology Funding Count by Round

The graph above shows the total count of funding events broken out by round. From 2006 to 2016 we’ve seen a gradual upward trend that peaked in 2016. Earlier stage funding such as Seed, Series A, and Series B events make up the majority of funding event counts.

We are currently tracking 852 Security Technology companies in 14 categories across 41 countries, with a total of $15.9 Billion in funding. Click here to learn more about the full Security Technology landscape report and database.

Security Technology Landscape Trends and Insights  – Q1 2017

Here is our Q1 2017 summary report on the Security Technology startup sector. The following report includes a startup landscape overview, graphical trends and insights, and recent funding and exit events.

We are currently tracking 834 Security Technology companies in 14 categories across 40 countries, with a total of $16 Billion in funding. Click here to learn more about the full Security Technology landscape report and database.

Security Technology Activity by Selected Investors – Q1 2017

The following graph summarizes the investor activity in the Security Technology space. Please note these graphics are made using data through February 2017.

Security Technology Investor Activity

The above analysis summarizes the total number of investment rounds Security Technology investors participated in, and the number of unique companies funded by selected investors. Sequoia Capital takes the lead in both metrics, with over 45 total investments into the space and just under 20 companies backed. Other major investors include Accel Partners, Bessemer Venture Partners, and Intel.

We are currently tracking 834 Security Technology companies in 14 categories across 40 countries, with a total of $16 Billion in funding. Click here to learn more about the full Security Technology landscape report and database.

Where in the World are Security Technology Startups? – Q1 2017

The analyses below summarize where Security Technology innovations are occurring. The graphic includes data through October 2016.

Security Technology Company Count by Country The above map shows the number of Security Tech startups located in different countries. The United States ranks as the top country with around 360 companies.

Security Technology VC Funding by Country

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 $10B.

We are currently tracking 790 Security Technology companies in 14 categories across 40 countries, with a total of $13.5 Billion in funding. Click here to learn more about the full Security Technology landscape report and database.

Security Technology Companies Founded by Year – Q4 2016

Security Tech Startups Founded by Year

The above graph summarizes the number of Security Technology companies founded in a certain year. 2013 ranks at the top with around 80 companies founded, 2014 follows as the runner-up with about 75 companies founded in that year.

We are currently tracking 760 Security Technology companies in 14 categories across 40 countries, with a total of $13 Billion in funding. Click here to learn more about the full Security Technology landscape report and database.