Our security technology report and research platform contains companies that enable enterprises and consumers to secure their data and networks. They often focus on protecting information, authenticating identity, and defending against cybersecurity attacks.
In this post we examine the different components of security technology and how they make up this startup ecosystem. We have classified the companies into 14 categories. This blog post will illustrate what these categories are and which categories have the most companies. We will also look at how these categories compare with one another in terms of their funding and maturity.
Let’s start off by looking at the Sector Map for the security technology sector. As of March 2018, we have classified 1063 security technology startups into 14 categories that have raised $25 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Threat Detection and Mitigation is the largest category with 283 companies. These companies actively monitor networks to detect attacks and mitigate them in real-time. Some example companies include DarkTrace, Cylance, Menlo Security, and Vectra.
We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.
Our Innovation Quadrant divides the security technology categories into four different quadrants.
We see that the Pioneers quadrant has the most security technology categories with 9. The Pioneer categories are in the earlier stages of funding and maturity. The Disruptors quadrant contains two categories: Cloud Security and Computer Forensics. These two categories have acquired significant financings at a young age. The Established quadrant contains Industrial Security, which has reached maturity with less financing. The Heavyweights quadrant includes two categories: Endpoint Security and Email Security. These two categories have reached maturity with significant financing.
We’ve now seen the security technology categories and their relative stages of innovation. How do these categories stack up against one another? Let’s look at the Total Funding and Company Count Graph.
The graph below shows the total amount of venture funding and company count in each category.
As noted earlier, the Threat Detection and Mitigation category leads security technology with 283 companies. In addition, the above graphic highlights that Threat Detection also leads in funding with almost $10 billion. Some of the best-funded companies in this category are FireEye ($841M), Tanium ($581M), and Alert Logic ($387M). It’s also noteworthy that the funding in Threat Detection is 60% higher than the funding in the next category, Data Security.
From the above analysis, we can see that the Threat Detection and Mitigation category leads security technology in funding and company count. On the other hand, Endpoint Security and Email Security stand out as the Heavyweight categories in our Innovation Quadrant. They have reached maturity with significant average funding per company versus other categories. It’ll be interesting to see how the security technology landscape will change and develop throughout the rest of 2018.
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