Venture Investing in Security Technology – Q2 2017

The following graphs highlight venture investing trends into the Security Technology sector. The graphics include data through February 2017.

Security Technology Q2 2017 Venture Investing

The above graph compares the total venture funding in each Security Technology category to the number of companies in the category. The Threat Detection category takes the lead in both metrics, with around $6.5B in funding and 225 startups.

Security Technology Category Average Funding Q2 2017

The above analysis summarizes the average company funding in each Security Technology category. The Email Security category leads the sector with over $90M in average funding per company, followed by the Endpoint Security and Computer Forensics categories.

We are currently tracking 890 Security Technology companies in 14 categories across 42 countries, with a total of $17B in funding. Click here to learn more about the full Security Technology market report.

Average and Median Age by Security Technology Category – Q2 2017

The following graph shows average and median age in the Security Technology sector. The graphic includes data through February 2017.

Average/Median Age by Security Tech Category
Average/Median Age by Security Tech Category

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 12 years and the highest median age at around 14 years. The Endpoint Security category is the runner-up with an average age of around 11 years and a median age of around 10 years.

We are currently tracking 882 Security Technology companies in 14 categories across 42 countries, with a total of $17.1 Billion in funding. Click here to learn more about the full Security Technology market report.

Security Technology Funding Trends – Q1 2017

The following graphs highlight recent trends in Security Technology startup funding activity. The graphics include data through February 2017.

Security Technology Q1 2017 Funding By Year

The above graph summarizes the total funding raised by Security Technology startups for each year. 2015 is the best year with around $2.8B in funding. 2016 comes in right behind with about $2.7B in funding.

Security Technology Funding By Vintage Year Q1 2017

The above graph summarizes the total amount of funding raised by Security Technology companies founded in a certain year. Companies founded in 2013 have raised the most funding at around $1.4B.

We are currently tracking 862 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.

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.