The long over-looked sector of cybersecurity is now garnering a hefty sum of venture capitalist (VC) investments. With the growing attention and scope of cyber attacks as well as the exponential growth in the Internet marketplace, consumers and developers are finally beginning to understand the importance of effective cybersecurity. The cybersecurity market is estimated to be around $77 billion in 2015 and reach $170 billion by 2020. According the Dow Jones VentureSource, cybersecurity companies raised $1.9 billion in venture capitalist funding in 2014. In the first six months of 2015, $1.2 billion had already been invested.
Clearly, there are many VC firms willing to invest in cybersecurity, and as the Internet of Things quickly becomes a reality, security will be paramount to its continued success and growth. Cisco has estimated that there will be three devices per capita by 2020. It is perhaps fitting then, that both the highest number of companies and the highest average VC funding investments were in endpoint security. As not only the number of devices increase, but also the number of methods in which content reaches devices, endpoint security may be the most effective and reliable method of ensuring user security. Though many of the startups analyzed were based in the California, there were several other regions in the United States and internationally that had sizeable VC investment. [Read more…]