The Golden Age of Security Startups

(This blog was originally published in TechCrunch)

According to Gartner, worldwide information security spending reached $76.9 billion in 2015. As the frequency and intensity of hacks worsen, security spending is expected to reach $170 billion by 2020. That’s more than 100 percent growth in five years.

Source: CB Insights

Venture capital (VC) investments in cybersecurity startups continues to grow steadily (~40 percent each year over the past 5 years); 2015 may reach an all-time high, with projections of ~ $3.5 billion.

Source: NVCA, CB Insights

 

Yet, when we look at cybersecurity as a percentage of all VC investments, the picture is somewhat sobering. Cybersecurity is less than 7 percent of all VC investments. Despite all the hacks and media attention, is the security sector under-funded? Read more at TechCrunch