In 2021, the global volume of venture investments in cybersecurity reached $21.8 billion, breaking a historical record. Startups from the USA and Israel received 88% of these funds. In 2020, the industry attracted almost 2.5 times less — $8.9 billion. About 50 projects from this area are included in the list of “unicorns”, 10 of them exceeded the estimate of $1 billion in 2021. In the same year, the industry set another record, committing investment transactions totaling $77.5 billion. According to experts, 2022 will be another year of achievements in a field of venture financing of startups solving information security problems. It is predicted that the rapid growth of estimates and the number of “unicorns” will continue.
In the last decade, the cybersecurity sector has experienced rapid global growth. And the transition of many companies and everyday business processes online has given the market even more dynamics. The size of the global cybersecurity market in 2020 was estimated at $183.3 billion, in 2021 — at $217.9 billion and is projected to reach $539.8 billion by 2030 with an average annual growth rate of 11.6%. The industry’s prospects are remarkably illustrated by the example of the largest global player — Palo Alto Networkst. The project was founded in 2005, three years later earned $ 3.1 million, and in 2021 the company’s revenue exceeded $ 4 billion. In 2012, Palo Alto Networkst went public and since then has never grown at a level below double digits and only once — in covid 2020 – its growth was below 20%.
The market and technological directions of cybersecurity development are very diverse, as are the threats they respond to. There are several segments that have become the most attractive for venture investors in 2021:
The accelerating digital transformation has changed the structure of government and business processes, giving impulse to the growth of the number and quality of cyber threats. Suppliers of products to protect against information attacks practically do not have to explain to customers the importance of investing in cybersecurity, at the same time, the market is still open to new players and solutions. Against this background, the potential of the cybersecurity industry becomes especially attractive to investors.
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