Security Technology Sector Overview – Q3 2019 Update

In this post we examine the different components of the security technology ecosystem. We will illustrate what the categories of innovation are and how they compare with one another.

Threat Detection Is The Largest Security Technology Category

Let’s start off by looking at the Sector Map. There are 1,266 security technology startups across 14 categories through Q3 2019. They have cumulatively raised $41B. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies within the category.

We see that Threat Detection is the largest category with 308 companies. These companies monitor networks to detect and mitigate cyber attacks. Some example companies in this category include Darktrace, Cylance, and Menlo Security.

Introducing the Security Technology Category Funding Rank Chart

Now let’s look at the Category Funding Rank Chart. This graph illustrates how the relative category funding ranks have evolved over time. Please note that a category’s ranking in each year indicates its placement based on the funding made into that category in that year only, without including any cumulative funding from the previous years.

As you can see, while some categories have maintained stable funding ranks, others have shifted around considerably. This chart gives a sense of where the dollars are flowing within the security technology ecosystem over the past few years.

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