Right from the network and data security to identity management and unified threat management (UTM), startups are offering cybersecurity solutions to identify vulnerabilities, thwart attacks and secure networks. Against this backdrop, the unicorn prediction model of GlobalData, a leading data and analytics company, has released a list of 50 cybersecurity startups that have the potential to become unicorns (>$1 billion).
Apoorva Bajaj, practice head of financial markets at GlobalData, says: “As we are entering the Code War era, where every digital device, no matter how small, can be ‘weaponized’ and cyberattacks are proliferating globally, investors are investing heavily to back cybersecurity startups. At the same time, the COVID-19 pandemic has offered tailwinds to the industry, as firms embraced a remote work paradigm with more applications and data stored in the cloud, a flurry of new threats is likely to emerge, making cybersecurity investment a necessity.”
GlobalData’s latest report, Future cybersecurity unicorns – 18 August 2021, reveals that in Q2 2021, the industry reported an investment of more than $8.1 billion, spanning 209 deals globally. The report also highlights a spike in venture capital (VC) investments in cybersecurity startups in Q2 2021, majorly driven by startups like Transmit Security, Trulioo and Forter raising funding in the range of $300 million to $550 million. In Q2 2021, North America accounted for more than 58% of deal volume followed by Europe (17%).
Some of the cybersecurity startups in GlobalData’s list of potential unicorns include BetterCloud, Guardicore, Deep Instinct and Swimlane.
BetterCloud, a U.S.-based software-as-a-service (SaaS) management platform, enables information technology (IT) professionals to discover, manage and secure the growing stack of SaaS applications in the digital workplace. The company recently launched BetterCloud Discover, a new centralized platform that gives enterprises insights into SaaS adoption and visibility into full scope of sanctioned and unsanctioned applications within its multi-SaaS environment.
Guardicore, a startup offering cloud security solutions, is focused on delivering more effective ways to protect critical applications from compromise through visibility, micro-segmentation, and real-time threat detection and response.
Deep Instinct, a U.S.-based cybersecurity solution provider, is leveraging deep learning and cybersecurity technologies. Recently, the company added new features and capabilities in its prevention-first solution, including increased resilience against adversarial machine learning attacks, credential theft protection and malicious behavior reporting.
Swimlane, a cybersecurity automation solutions provider, assists organizations in handling all security operation (SecOps) requirements, including prioritizing alerts, orchestrating tools and automating the remediation of threats. Recently, the company raised $40 million to accelerate partnerships and alliances, expand R&D and enable further global expansion.
Bajaj concludes: “Increase in VC deals coupled with substantial growth in patents granted, along with positive news sentiments and growing mentions of cybersecurity in public company filings indicate that this technology is of considerable interest to both VCs and corporates. The COVID-19 pandemic is providing tailwinds to this industry, as companies are embracing remote work model. With cloud-based backup becoming the order of choice to save applications and data, a range of new online threats is likely to emerge, which will make investment in cybersecurity a necessity.”