9-Figure Deals Lift Cybersecurity Investments To An All-Time High
Investments into cybersecurity startups and emerging players grew by 235% over the past five years, reaching an all-time high of $3.8 billion in 2015 – according to CB Insights. VCs and corporate investors moved the needle to nine-figures on some of the larger deals.
A look at three hot cybersecurity companies who were on the receiving end of the largest cash infusions over the past year:
Tenable Network Security, headquartered in Columbia, Md., pulled in one of the largest fundings for a privately held security company with their $250 million series B round led by Insight Ventures Partners and Accel. Tenable provides Fortune 500 and Global 2000 corporations with continuous monitoring of their networks, which helps identify vulnerabilities, reduce risk, and ensure compliance.
Emeryville, Calif. based Tanium secured $120 million in financing from TPG, Institutional Venture Partners (IVP) and funds and accounts advised by T. Rowe Price Associates, Inc., alongside existing investor Andreessen Horowitz. Tanium provides corporate IT security managers with instantaneous endpoint visibility and control – which helps them make better decisions and take faster actions around cyber threats.
Cloudflare, a San Francisco based web security company, raised $110 million from Fidelity, Google, Microsoft, Baidu, Qualcomm and their existing investors. Cloudfare optimizes website performance – providing super fast page load times – while blocking abusive bots, crawlers, spam, and other cyber attacks on websites.
CB Insights reports that 332 cybersecurity companies received funding in 2015. There’s a crowding field of players chasing the money in the rapidly expanding cybersecurity industry, which is defined by global market sizing estimates that range from $75 billion in 2015 to $170 billion by 2020.
The cloud security market alone is expected to be worth $8.7 billion by 2019 (up from $4.2 billion in 2014), growing at a compound annual growth rate (CAGR) of 15.7%, according to research firm Markets and Markets. Cloud security includes identity and access management (IAM), data loss prevention (DLP), web security, email security, security incident event management (SIEM), encryption Services, network security, cloud database security, and virtualization security, among others.
This article was written by Steve Morgan from Forbes and was legally licensed through the NewsCred publisher network.