- Cybersecurity, privacy and security startups have raised $10.7 billion so far this year, five times more than was raised throughout 2010 ($1.7 billion), according to a Crunchbase Pro query today.
- 22,156 startups who either compete in or rely on cybersecurity, security and privacy technologies and solutions as a core part of their business models today, 1.450 of which have received pre-seed or seed funding in the last twelve months based on a Crunchbase Pro query
- From network and data security to I.T. governance, risk measurement and policy compliance, cybersecurity is a growing industry estimated to be worth over $300B by 2025, according to C.B. Insight’s Emerging Trends Cybersecurity Report.
Today, 797 cybersecurity, privacy and security startups have received a total of $10.73 billion so far this year, with $4.6 million being the median funding round and $17.5 million the average funding round for a startup. The number of startups receiving funding this year, funding amounts and the methodology to find the top 25 cybersecurity startups are all based on Crunchbase Pro analysis done today.
New startups and established vendors are attracting record levels of investment as all organizations look to thwart increasingly complex, costly and unpredictable cyberattacks. There is an arms race going on between cyber attackers using A.I. and machine learning and the many startups and existing vendors whose goal is to contain them. CBInsights and PwC recently published their latest quarterly joint study of the venture capital landscape, MoneyTree™ Report, Q3, 2020. The study finds that monitoring and security deals grow more than double in Q3, 2020, as the heat map below shows:
The 20 Best Cybersecurity Startups To Watch In 2021
Based on a methodology that equally weighs a startup’s ability to attract new customers, current and projected revenue growth, ability to adapt their solutions to growing industries and position in their chosen markets, the following are the top 20 cybersecurity startups to watch in 2020:
Axis Security – Axis Security’s Application Access Cloud™ is a purpose-built cloud-based solution that makes application access across networks scalable and secure. Built on zero-trust, Application Access Cloud offers a new agentless model that connects users online to any application, private or public, without touching the network or the apps themselves. Axis Security is a privately held company backed by Canaan Partners, Ten Eleven Ventures and Cyberstarts. Axis is headquartered in San Mateo, California, with research and development in Tel Aviv, Israel.
Bitglass – What makes Bitglass unique and worth watching is how they are evolving their Total Cloud Security Platform to combine cloud access security brokerage, on-device secure web gateways and zero-trust network access to secure endpoints across all devices. Its Polyscale Architecture is delivering uptimes of 99.99% in customer deployments. Bitglass’s 2020 Insider Threat Report has several interesting insights based on their recent interviews with a leading cybersecurity community. One interesting takeaway is 61% of those surveyed experienced an insider attack in the last 12 months (22% reported at least six).
Cado Security – Cado Security’s cloud-native forensics and response platform helps organizations respond to security incidents in real-time, averting potential breaches and security incidents. The Cado Response platform is built on analytics components that perform thorough forensic analyses of compromised systems. Cado’s platform, Cado Response, is an agentless, cloud-native forensics solution that allows security professionals to quickly and comprehensively understand an incident’s impact across all environments, including cloud and containers as well as on-premise systems. “Finding the root cause of security incidents in cloud or container environments is incredibly difficult. Traditional tools don’t support these new environments and there is a shortage of people who know both forensics and cloud security,” said CEO James Campbell, formerly Director, Cyber Threat Detection and Response at PricewaterhouseCoopers. “Our Cado Response platform completely changes how security professionals can respond to incidents in the cloud.”
Confluera – Originally mentioned as one of the 20 Best Cybersecurity Startups To Watch In 2020, Confluera’s sustained innovation pace in the middle of a pandemic deserves special mention. They are one of the most resilient startups to watch in 2021. Confluera is a cybersecurity startup helping organizations find sophisticated security attacks going on inside of corporate infrastructures. The startup delivers autonomous infrastructure-wide cyber kill chain tracking and response by leveraging the ‘Continuous Attack Graph’ to stop and remediate cyber threats in real-time deterministically. Confluera’s platform is designed to detect and prevent attackers from navigating infrastructure. Confluera technology combines machine comprehended threat detection with accurately tracked activity trails to stop cyberattacks in real-time, allowing companies to simplify security operations radically. It frees up human security personnel to focus on more important work instead of spending hours trying to join the dots between the thousands of alerts they receive daily, many of which are false positives. The following is a video that explains how Confluera XDR for Cloud Infrastructure works:
DataFleets – DataFleets is a privacy-preserving data engine that unifies distributed data for rapid access, agile analytics and automated compliance. The platform provides data scientists and developers with a “data fleet” that allows them to create analytics, ML models and applications on susceptible data sets without direct access to the data. Each data fleet has easy-to-use APIs and under-the-hood, they ensure data protection using advances in federated computation, transfer learning, encryption and differential privacy. DataFleets helps organizations overcome the struggle between data privacy and innovation by maintaining data protection standards for compliance while accelerating data science initiatives.
DefenseStorm – DefenseStorm’s unique approach to providing cybersecurity and cyber-compliance for the banking industry make them one of the top startups to watch in 2021. Their DefenseStorm GRID is the only co-managed, cloud-based and compliance-automated solution of its kind for the banking industry. It monitors everything on a bank’s network. It matches it to defined policies for real-time, complete and proactive cyber exposure readiness, keeping security teams and executives updated on bank networks’ real-time security status. The company’s Threat Ready Active Compliance (TRAC) Team augments its bank customers’ internal teams to protect business continuity and skills availability while ensuring cost-effective coverage and management.
Enso Security – Enso is an application security posture management (ASPM) platform startup known for the depth of its insights and expertise in cybersecurity. With Enso, software security groups can scale and gain control over application security programs to protect applications systematically. The Enso ASPM platform discovers application inventory, ownership and risk to help security teams quickly build and enforce security policies and transform AppSec into an automated, systematic discipline.
Ethyca – Ethyca is an infrastructure platform that provides developers and product teams with the ability to ensure consumer data privacy throughout applications and services design. It also provides your product, engineering and privacy teams with unmatched ease of use and functionality to better care about your user’s data. The company helps companies discover sensitive data and then provides a mechanism for customers to delete, see, or edit their data from the system. Ethyca’s mission is to increase trust in data-driven business by building automated data privacy infrastructure. Ethyca’s founder and CEO Cillian Kieran is a fascinating person to speak with on the topics of privacy, security, GDPR and CCPA compliance. He continues to set a quick pace of innovation in Ethyca, making this start-up one of the most interesting in data privacy today. Here’s an interview he did earlier this year with France 24 English: