Cybersecurity: $ 5 billion investment in the United States
The US cybersecurity industry is attracting “unprecedented levels of venture capital investment,” according to the National Venture Capital Association and PitchBook Q4 2019 Venture Monitor report.
The number of transactions increased from 133 to 311 between 2009 and 2019 ranging from $ 800 million to $ 5 billion, in the United States. However, the share of investment in late-stage funding has decreased compared to last year which can be explained by an exponential growth of new cybersecurity companies.
The average transaction size in 2019 is $ 17.3 million, up slightly from 2018 which was $ 16.6 billion. But average valuations fell to $ 136.8 million, a correction after rising sharply from 2017 to 2018.
A rapidly growing market
The cybersecurity market in the United States is driven by the growing need of companies to minimize IT security risks, according to a study by Business France. Companies are increasingly vulnerable to cyber attacks, which has led to an increase in average spending on cybercrime.
In 2017, average business spending on cybersecurity solutions increased by more than 23%, to reach over $ 11.7 million, driving the growth of the cybersecurity market. The size of the global cybersecurity market is estimated to be $ 120 billion, 40% of which comes from the United States.
France also intends to stand out in the cybersecurity market. In 2018, 3.8 million euros investment was devoted to it by company. In 2018, 122 French startups were specialized in cybersecurity in France.
French players are “booming”, notes by the 2018 Xerfi study on the cybersecurity market, which points out that “France is at the forefront of innovation in security and digital trust”.
Last week, during the International Cybersecurity Forum (FIC) which is held each year in Lille, the government supported the creation of a campus dedicated to cybersecurity. It would welcome companies, startups, schools and administrations dedicated to this field. The objective is to bring together all the key players in the sector. This 10,000 square meter space would accommodate up to 10,000 players from 2021. This project is funded by private companies such as Atos or Thalès but also by the Ile de France regional council.
During the FIC, three French cybersecurity start-ups were rewarded: Olvid which offers secure instant messaging, Citalid publishes software allowing companies to measure their financial exposure to cyber risk and the Tarides company which allows its customers to develop secure applications from the outset.