By Ryan Prete, Sep 7, 2023
The cybersecurity sector has experienced unprecedented growth over the past few decades, evolving in response to the escalating cyber threat landscape, as the global economy increasingly revolves around the internet. With the proliferation of digital technologies, the demand for robust security measures has surged. Businesses, governments, and individuals alike have recognized the importance of safeguarding sensitive data and systems.
The growth throughout the cybersecurity industry has touched every subsector of the space. Cybersecurity firms have mushroomed, offering a diverse range of solutions, from firewalls to advanced threat detection systems. The workforce has expanded, with a surge in cybersecurity professionals, ethical hackers, and analysts. Investments in research and development have fueled innovation, resulting in cutting-edge technologies.
Further, regulatory frameworks have become more stringent, compelling organizations to prioritize cybersecurity compliance. The rise of cloud computing and IoT has further accentuated the industry’s significance, as the attack surface expands. The industry’s growth shows no signs of slowing down, as cyber threats continue to evolve, requiring ongoing adaptation and innovation to stay ahead of malicious actors.
As a result of all these factors–and many others–the investor climate surrounding the cybersecurity industry has exploded in the past decade. It’s truly hard to fully explain just how much money has flowed into the cybersecurity sector from massive private equity firms and institutional investors.
Step into the high-reward world of private equities. Don’t wait, your portfolio expansion starts here!
Analysts estimate the cybersecurity industry to currently be valued around $250 billion, but McKinsey and Company forecasts that the global cybersecurity addressable market could soon reach $1.5-$2 trillion, approximately ten times the size of the current vended market. This valuation could climb even higher in upcoming years, as damage from cyberattacks is expected to amount to about $10.5 trillion annually by 2025—a 300 percent increase from 2015 levels. With that, the demand for cybersecurity-specific software and continued evolution of the technology’s capabilities will need to grow.
Let’s take a look at the top venture capital and private equity investors in the cybersecurity sector, and further examine why the largest global investors are all-in on one of the world’s fastest growing industries, with cybersecurity companies having raised over $335 billion from private investors since 2020.
• Founded in 1995, Insight Partners is a private equity investment firm that seeks to invest in companies operating in artificial intelligence & machine learning, consumer, cybersecurity, and other sectors.
• Investments Since 2020: 75
• Investments in the Last 12 Months: 13
• Founded in 2005, Y Combinator is an accelerator firm that prefers to invest in b2b software and services, education, consumer, healthcare, real estate and construction sectors.
• Cybersecurity Investments Since 2020: 68
• Investments in the Last 12 Months: 18
• Founded in 1990, Plug and Play is an accelerator firm which prefers to invest in companies operating in consumer products, consumer services, financial services, and other sectors.
• Cybersecurity Investments Since 2020: 64
• Investments in the Last 12 Months: 12
• Founded in 1972, Sequoia Capital is a venture capital firm that seeks to invest in companies operating in the information technology, healthcare, manufacturing, mobile, nanotechnology, financial service, internet, energy, media, and retail sectors.
• Cybersecurity Investments Since 2020: 49
• Investments in the Last 12 Months: 8
• Founded in 1983, Accel is a venture capital firm which focuses on investments in early-stage companies operating in the cloud, software as a service (SaaS), consumer, enterprise, information technology, healthcare, fintech, and other sectors.
• Cybersecurity Investments Since 2020: 46
• Investments in the Last 12 Months: 6
• Founded in 2014, Ten Eleven Ventures is a venture capital firm which prefers to invest in companies working in the cybersecurity and technology sectors.
• Cybersecurity Investments Since 2020: 42
• Investments in the Last 12 Months: 10
• Founded in 2006, Techstars is an accelerator firm which prefers to invest in business products, business services, consumer products, consumer services, financial services, energy, and other sectors.
• Cybersecurity Investments Since 2020: 40
• Investments in the Last 12 Months: 14
• Founded in 2015, Forgepoint is a venture capital firm which focuses on cybersecurity, software, artificial intelligence & machine learning, blockchain, insurtech, fintech and privacy sectors.
• Cybersecurity Investments Since 2020: 38
• Investments in the Last 12 Months: 7
• Founded in 2001, Paladin Capital Group is a venture capital firm which seeks to invest in companies operating in the technologies, products, and services sectors.
• Cybersecurity Investments Since 2020: 35
• Investments in the Last 12 Months: 11
• Founded in 2000, Lightspeed Venture Partners is a venture capital firm which seeks to make investments in the enterprise, health, fintech, and consumer sectors.
• Cybersecurity Investments Since 2020: 34
• Investments in the Last 12 Months: 9
Leverage the power of private equities. Make your move and accelerate your wealth creation journey today!
In total, since 2020, venture capital and private equity firms have completed over 8,200 fundraising deals–totaling over $335 billion–for cybersecurity companies, according to PitchBook. This eye-opening total is only set to drastically rise in upcoming years.
Linqto members have the opportunity to join the largest investment firms in the world who have made cybersecurity a top priority. Both Tanium and BigID are available to members–two rising stars in the cybersecurity industry.
Founded in 2007, Tanium is the cybersecurity industry’s only provider of converged endpoint management (XEM), is the reference platform of choice to manage complex security and technology environments. Only Tanium protects every endpoint from cyber threats by integrating workflows across IT, Risk, Compliance, and Security into a single platform that delivers comprehensive visibility across devices, a unified set of controls, real-time remediation, and a common taxonomy for a single shared purpose: to protect critical information and infrastructure at scale. Tanium has secured numerous partnerships with global organizations and government entities.
Also working to secure the security and data of large enterprise organizations is BigID, a cybersecurity company founded in 2016. BigID’s data intelligence platform enables organizations to know their enterprise data and take action for privacy, security, and governance. Customers deploy BigID to proactively discover, manage, protect, and get more value from their regulated, sensitive, and personal data across their data landscape. BigID has been recognized numerous times for its data intelligence innovations, including recognition from the World Economic Forum, Forbes, Business Insider, RSA, and more.
Learn more about, and begin investing in, Tanium and BigID by visiting the Linqto platform today.
This material, provided by Linqto, is for informational purposes only and is not intended as investment advice or any form of professional guidance. Before making any investment decision, especially in the dynamic field of private markets, it is recommended that you seek advice from professional advisors. The information contained herein does not imply endorsement of any third parties or investment opportunities mentioned. Our market views and investment insights are subject to change and may not always reflect the most current developments. No assumption should be made regarding the profitability of any securities, sectors, or markets discussed. Past performance is not indicative of future results, and investing in private markets involves unique risks, including the potential for loss. Historical and hypothetical performance figures are provided to illustrate possible market behaviors and should not be relied upon as predictions of future performance.
Ryan is a financial writer for Linqto, known for his original blog content, articles, and other works. He previously worked as a financial writer at PitchBook Data, where he covered private equity, and as a reporter for Bloomberg in Washington D.C.,where he reported on tax policy. Ryan has also reported on cybersecurity policy for Inside Washington Publishers. His work has been featured in The Wall Street Journal, Axios, Yahoo News, and Reuters. He is a graduate of the University of California, Santa Barbara.
Back to articles