Security Technology Startup Highlights – Q1 2018

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.

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

Security Technology Sector Overview – Q1 2018

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.

Security Technology Sector Map
Security Technology Sector Map

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.

Security Technology Innovation Quadrant
Security Technology Innovation Quadrant

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.

Security Technology Total Funding and Company Count
Security Technology Total Funding and Company Count

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.

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

Age by Category in Security Technology – Q3 2017

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

Security Technology Age by Category
Security Technology Age by 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 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.

Where in the World Are Security Tech Startups? – Q3 2017

The analyses below summarize where Security Technology innovations are occurring. The graphics includes data through July 2017.

Security Technology Company Count by Country
Security Technology Company Count by Country

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.

Security Technology VC Funding by Country
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 $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.

Security Technology Funding Trends – Q3 2017

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

Security Technology Total Funding by Year
Security Technology Total Funding by Year

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.

Security Technology Funding by Vintage Year
Security Technology Funding by Vintage Year

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.

Security Technology Companies Founded by Year – Q3 2017

The following graph shows the founding year distribution in the Security Technology sector. The graphic includes data through July 2017.

Security Technology Companies Founded by Year
Security Technology Companies Founded by Year

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.

Security Technology Funding by Round – Q3 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 July.

Security Technology Funding Amount by Round
Security Technology Funding Amount by Round

The graph above shows the total amount of VC funding broken out by round. From 2006 to 2016, we saw a general increase in the overall sector funding, with the total amount peaking in 2015. Asides from Seed Stage, all other rounds of funding saw relatively equal amounts of funding. 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 2015. Earlier stage funding such as Seed, Series A, and Series B events make up the majority of funding event counts.

We are currently tracking 972 Security Technology companies in 14 categories across 42 countries, with a total of $20.9 Billion in funding. Click here to learn more about the full Security Technology market report.