2017 a record year for cyber investment – up to $7.6bn
2017 was a record year for cyber security investment, with venture capital firms and investors alike keen to ride the growth wave that the sector is currently experiencing. In raw terms, investment jumped to $7.6bn in 2017, more than double the figure recorded for 2016. The number of deals also rose, reaching 548 in 2017 compared to the 467 recorded a year earlier.
This is corroborated by Gartner, who have predicted worldwide security spending will increase by eight percent in 2018, to reach a value of $96 billion (£71.72 billion) by the end of the year because of regulatory change, mindset and a growing awareness of threats. New regulations including the GDPR in Europe, plus the Health Insurance Portability and Accountability Act, National Institute of Standards and Technology in the US and China’s far-reaching Cybersecurity Law mean businesses are encouraged to invest more in their security tech stack.
Big cyber investment deals in 2017
- ThreatStack – an intrusion detection platform – announced it’d raised $45m in a Series C round in September.
- Darktrace – the machine-learning giant of the cyber security marketplace, with its flagship Enterprise Immune System technology, successfully raised another $75m in July, from Insight Venture Partners as well as existing investors
- PAS – specialist ICS inventory & configuration management software provider raised $40m in growth investment this April from Tinicum LP
- Druva – raised $80m in August led by Riverwood Capital, as well as existing investors.
The critical infrastructure security sector is showing no sign of slowing down either; as we publish this article, Israeli ICS specialist Nozomi Networks has just announced a Series B financing round raising $15m. Their technology is deployed across five continents in sectors including energy, manufacturing, pharmaceuticals, chemicals, mining and utilities.
Market and Markets research predicts the ICS cybersecurity market will grow to $13.8bn by 2022. Forty-six percent of respondents in the annual SANS ICS survey indicated security budgets are growing and more than half of the companies surveyed in the 2017 State of Industrial Cybersecurity report say they’ve experienced an ICS security incident in the past 12 months.