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 has released a list of 50 cybersecurity startups that have the potential to become unicorns (>US$1bn).
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 ‘weaponised’ 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 over US$8.1bn, 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 US$300m to US$550m. In Q2 2021, North America accounted for over 58% 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.
Mr. 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.”