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Security TechnologyStartup Landscape Trends and Insights
March, 2017
Security technology report outline
2
This report provides an overview of the security technology sector and is broken down into three sections
Sector Description
High-level sector metrics with sub-category
definitions
Trends & Insights
Infographics and data points for the security
technology sector
Quarterly Activity
Major funding and exit events from the previous
90 days
Venture Scanner reports are built by analysts utilizing our startup database and landscaping platform
Security Technology Sector Description
3
Security tech startups are creating new businesses in 14 categories
The graphic above shows a sampling of companies in each category, stats as of February 2017 4
Security Technology
Learn about our full 830 company report with $21B in funding
Security Intelligence/Analytics
Threat Detection/Mitigation
Cloud/Hosting Security Data/Information Security Mobile Security Identity/Fraud Security Industrial Security
Risk Assessment/Compliance
Endpoint Security/Firewalls
z z
Application Security Email Security Brand Protection Computer Forensics Security Hardware
Innovation quadrant for security technology
AVERAGE FUNDING ($M)
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ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
This quadrant shows a relative segmentation of the categories with respect to one another, Feb 2017 5
Email Security
Endpoint Security
Computer Forensics
Brand Protection
Risk Assessment
Source CodeSecurity
IndustrialSecurity
SecurityHardware
IdentitySecurity
Data Security
CloudSecurity
SecurityAnalytics
Mobile Security
Threat Detection
Security technology startups play in many different categories (1 of 3)
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Application and Source Code Security64 Startups, $1.7B Total FundingCompanies that scan code bases for potential loopholes, including runtime security and performance management
Cloud and Hosting Server Security 121 Startups, $3.5B Total FundingCompanies that protect servers from being atttacked, including cloud servers used for applications, infrastructure, and data files
Data and Information Security 196 Startups, $3.2B Total FundingCompanies that help protect electronic data from unauthorized external access or threats, including information assurance
Brand Protection21 Startups, $358M Total FundingCompanies that help protect a brand’s public image on the internet, including domain name monitoring and reputation management
Computer Forensics 28 Startups, $1B Total FundingCompanies that monitor and review computer usage for criminal investigation and evidence acquisition purposes
Email Security 34 Startups, $1.1B Total FundingCompanies that focus on producing security solutions for email platforms, including products for anti-spam and anti-phishing
Category stats as of February 2017
Security technology startups play in many different categories (2 of 3)
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Endpoint Security and Firewalls 105 Startups, $3.9B Total FundingCompanies that protect devices connected to a network (as opposed to the network itself), including anti-virus and firewall programs
Infrastructure and Industrial Security 59 Startups, $503M Total FundingCompanies that protect the operations of infrastructure and industrial facilities, such as power plants, electricity grids, and factories
Risk Assessment and Compliance 114 Startups, $2B Total FundingCompanies that assess the security level of enterprise networks and ensure that they comply with relevant standards
Identity and Fraud Security 177 Startups, $2.3B Total FundingCompanies that authenticate identities, approve access within a system, and monitor activities to prevent fraud
Mobile Security 65 Startups, $1.7B Total FundingCompanies that protect portable devices, such as smartphones or tablets, from threats associated with mobile computing
Security Hardware34 Startups, $882M Total FundingCompanies that produce hardware components for digital security solutions, such as VPN routers and controller access points
Category stats as of February 2017
Security technology startups play in many different categories (3 of 3)
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Security Intelligence and Analytics 105 Startups, $2.9B Total FundingCompanies that collect data and then produce actionable analytics on network security to predict and optimize performance over time
Threat Detection and Mitigation 228 Startups, $6.4B Total FundingCompanies that activity monitor a network to detect attacks and help to mitigate them by responding in real time
Category stats as of February 2017
Security TechnologySector Trends & Insights
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Investing into security technology happens in a variety of categories
The threat detection category accounts for 20% of venture funding and 17% of total companies in the security technology startup sector
Venture Investing in Security Technology
Companies are categorized by function, and therefore can exist in multiple categories. Feb 2017
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VC Funding Count
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VC funding into security technology has been growing
Overall Security Tech VC funding grew at a CAGR of 46% from 2011-2016
Security Technology Funding Over Time
Data as of February 2017
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
To
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Security technology startups continue to show traction
Security Technology Funding Amount by Round
Recent years have seen a general increase in all financing rounds, implying startups of all stages are demonstrating success
Graph shows only the funding types listed therein, data as of Feb 2017
0.0
0.5
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fun
din
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mo
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B)
Late Stage Series D Series C Series B Series A Seed
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Security technology startups founded in 2013 lead in VC funding
Startups founded in 2013 account for 16% of the sector funding over the last decade, and include companies like Illumio, SentinelOne, and Darktrace
Security Technology Funding By Vintage Year
Data as of February 2017
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
To
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g ($
B)
Year Founded
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Security technology startups are a global phenomenon
Security Technology Startup Count by Country
0 440Companies
Data as of February 2017
15
Top VC investors are making bets into the security technology sector
Selected Investor Activity in Security Technology
The above count represents a subset of overall investor activity, Feb 2017
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Nu
mb
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f In
vest
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Number of Investments Number of Companies Backed
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Security technology exit activity has been dominated by acquisitions
Exit events within security technology grew by 440% between 2011 and 2016
Security Technology M&A and IPO Events
Data as of February 2017
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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Public Acquired
Security TechnologyQuarterly Notable Events
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Recent security technology funding statistics
There have been 77 security technology funding events since Nov 2016
Recent Security Technology Funding Round Counts
Graph shows only the funding types listed therein, Feb 2017
0
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Seed Series A Series B Series C Series D Late Stage
Fun
din
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ven
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Recent security technology funding events
Notable Recent Security Technology Funding Events
Company Funding Type Amount Date
Series B $165,000,000 Jan 23, 2017
Series C $70,000,000 Jan 25, 2017
Series C $60,00,000 Nov 17, 2016
Series E $50,000,000 Jan 23, 2017
Series C $45,000,000 Jan 6, 2017
Security tech startups raised $1.1 billion since Nov 2016
Data as of February 2017
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Notable recent security technology exit events
Notable Recent Security Technology Acquisitions
Company Acquirer Amount Date
$3,700,000,000 Jan 24, 2017
$1,800,000,000 Dec 14, 2016
$1,600,000,000 Jan 30, 2017
$650,000,000 Jan 17, 2017
$120,000,000 Feb 8, 2017
There have been 20 exit events since Nov 2016, all of which have been acquisitions
Data as of February 2017
About Venture Scanner
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