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 Exits by Category and by Year – Q1 2017

The following graphs highlight the exit activity in the Security Technology sector. The graphics include data through October 2016.

security-tech-exits-by-category
Exit Activity by Category in Security Technology

The above graph summarizes the number of exits (acquisitions and IPOs) in each Security Technology category. The Threat Detection/Mitigation category leads the sector with 14 IPOs and 28 acquisitions. The Data/Information Security category follows behind with 4 IPOs and 22 acquisitions.

Exit Activity by Year in Security Technology
Exit Activity by Year in Security Technology

The above graph summarizes the number of exits (acquisitions and IPOs) in Security Technology by year. 2016 currently leads the sector with 26 acquisitions, with 2015 following behind with 23 acquisitions.

We are currently tracking 828 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.

Average and Median Age by Security Technology Category – Q1 2017

The following graph shows average and median age in the Security Technology sector. The graphic includes data through October 2016.

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Average and 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 13 years and the highest median age at around 14 years. The Brand Protection category is the runner-up with an average age of around 12 years and a median age of around 10 years.

We are currently tracking 801 Security Technology companies in 14 categories across 40 countries, with a total of $14.3 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 Market Overview – Q4 2016

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

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 737 Security Technology companies in 14 categories across 39 countries, with a total of $12.1 Billion in funding. Click here to learn more about the full Security Technology landscape report and database.

Security Technology VC Funding by Vintage Year – Q4 2016

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

The above graph summarizes the total amount of funding raised by Security Technology companies founded in a certain year. SecurityTech companies founded in 2004 have raised the most funding at around $877M, followed by those founded in 2012 which have raised about $716M.

We are currently tracking 729 Security Technology companies in 14 categories across 39 countries, with a total of $11.9B in funding. Click here to learn more about the full Security Technology landscape report and database.