Venture Investing in Security Technology – Q1 2017

The following graphs highlight venture investing trends into the Security Technology sector. The graphics include data through October 2016.

Security Technology 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/Mitigation category is leading in both stats, with just under $6B in funding and around 200 companies.

security-tech-average-category-funding

The above analysis summarizes the average company funding in each Security Technology category. The Email Security category leads the sector with around $100M in average funding per company, followed by the Endpoint/Firewall Security and Computer Forensics categories.

We are currently tracking 813 Security Technology companies in 14 categories across 40 countries, with a total of $15 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 Funding by Type – Q4 2016

The following two graphs summarize the types of funding going into the Security Technology space. Please note these graphics are made using 2016 data through October.

Security Technology Funding by Type - Amount
Security Technology Funding by Type – Amount

The graph above shows the total amount of VC funding broken out by type. In recent years, we’ve seen a general increase in the amount of funding across the board, with growth in the amount of practically all funding stages.

Security Technology Funding by Type - Count
Security Technology Funding by Type – Count

The graph above shows the total count of funding events broken out by type. Similar to the earlier graph, we’ve seen a general upward trend over these past few years. Earlier stage deals (Seed, Series A, Series B) make up a larger share of the total count.

We are currently tracking 767 Security Technology companies in 14 categories across 40 countries, with a total of $12.9 Billion in funding. Click here to learn more about the full Security Technology landscape report and database.

Venture Investing In Security Technology – Q4 2016

venture-investing-in-security-technology

The above graph compares the total venture funding in each Security Technology category to the number of companies in the category. The Thread Detection/Mitigation category leads the sector in both the Total Funding stat ($6B in funding) and the Company Count stat (over 200 startups).

We are currently tracking 764 Security Technology companies in 14 categories across 40 countries, with a total of $12.8B 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.

Security Technology Category Innovation Quadrant – Q4

Security Technology Category Innovation Quadrant
Security Technology Category 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: Categories with high average funding and high average age. These categories are comprised of companies that have reached maturity with significant financing.
  • Established: Categories with low average funding and high average age. These categories are comprised of companies that have reached maturity with less financing.
  • Disruptors: Categories with high average funding and low average age. These categories are comprised of companies that are less mature with significant financing.
  • Pioneers: Categories with low average funding and low average age. These categories are comprised of companies that are less mature with earlier stages of financing.

The definitions of the Security Technology categories represented in the above Innovation Quadrant are as follows:

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, and cloud data files.

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

Data and Information Security: Companies that help protect electronic data from unauthorized external access or threats. Examples include data leakage prevention, file-based security, and enterprise data encryption.

Mobile Security: Companies that protect smartphones and tablets from threats associated with mobile computing. Examples include proactive mobile protection, lost device management, and mobile application security.

Endpoint Security and Firewall: Companies that provide security solutions to protect devices connected to networks. Examples include anti-virus programs, firewalls, and system utility tools.

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

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

Infrastructure and Industrial Security: Companies that protect industrial infrastructures and governmental operations from security threats. Examples include companies that defend against attacks on supervisory control and data acquisition (SCADA), attacks on Homeland Security, and attacks on manufacturing supply chains.

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.

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

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

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

Brand Protection: Companies that protect the public image of brands on the Internet. Examples include reputation management, domain name monitoring, and social media attack mitigation.

We are currently tracking 756 Security Technology companies in 14 categories across 40 countries, with a total of $12.4 Billion in funding. Click here to learn more about the full Security Technology landscape report and database.

Security Technology Activity by Selected Investors – Q4 2016

Security Technology Investor Activity

The above analysis summarizes the total number of investment rounds Security Technology investors participated in, and the number of unique Security Tech companies funded by selected investors. Sequoia Capital take the lead in both categories, both making the highest number of investments and backing the most companies. Bessemer Venture Partners, Accel Partners, New Enterprise Associates, and Intel Capital round out the top of the list.

We are currently tracking 754 Security Technology companies in 14 categories across 39 countries, with a total of $12 Billion in funding. Click here to learn more about the full Security Technology landscape report and database.