Private Equity and Venture Capital Cybersecurity startups in last 2 years analysis

Private Equity and Venture Capital Cybersecurity startups in last 2 years analysis


Pre IPO Swap New York, NY 9/12/2019 -- Pre IPO Swap is launching a Series A for Blackwatch Digital so we are researching the Cybersecurity space in order to see what the trends have been.  Using Crunchbase data, we did an export using filters and found 532 firms were founded since 2017, with a total of $752 Million USD in funding.  Users should note that not all firms disclose funds raised, and this doesn't include established firms.  The total recent figure, according to CB Insights, is much higher.
Cybersecurity deals reached a new peak in 2018, with $7B+ invested across 617 deals. So far in 2019 investors have participated in 316 deals worth $6B+.
cybersecurity-annual-funding-activity-1-1024x768
Are we at the tail end of a downtrend, or is this a temporary 'blip' on the radar?  2019 will be a decisive year, but our argument is that it depends how you count it.  For example, Blackwatch Digital offers a secured and insured custody service for digital assets.  What type of firm is it, Cryptocurrency, Cryptography, Cybersecurity, or I.T. ?  It's clearly not "Cryptocurrency" as they are not doing a token raise and actually their solution is a security solution.  They are a Cybersecurity firm, but their only customers would be firms that have digital assets.  Pre IPO Swap has listed only one Cryptocurrency firm in our system, Circle.
Cybersecurity is a growing market because of the growing problems.  After the 2016 election 'hack' of the DNC (Which we all know was a 'leak' not a hack) it gave security issues global publicity.  Also, cities like Atlanta and many others have been victims of Ransomware, which in many cases devastated their networks.
(Reuters) - The Atlanta cyber attack has had a more serious impact on the city’s ability to deliver basic services than previously understood, a city official said at a public meeting on Wednesday, as she proposed an additional $9.5 million to help pay for recovery costs.
Of course it's easy for Cities and other local governments to simply write checks to stop the problem (money always make the problems worse) but in the world of Crypto you have to be more safe.  That's because if you get hacked, you can bet the Crypto is gone.  There is no bank to replenish your Bitcoin.  Hackers stole $4.26 Billion worth of Crypto just in the first half of 2019:
According to the company's latest Q2 2019 Cryptocurrency Anti-Money Laundering (AML) report, which provides an overview of the major cryptocurrency thefts, scams, and fraud worldwide, criminals and fraudsters netted approximately $4.26 billion for the first six months of the year.  To put this in perspective, cryptocurrency thefts reached $1.2 billion in the first three months of 2019 and $1.7 billion for the entire 2018.
The hired I.T. experts tasked at protecting these networks never read Kevin Mitnick's "The Art of Deception."  Infiltrating a corporate network, or being the victim of Ransomware is typically a limited one time thing.  Once a hacker is known to be inside a network, safety systems close and emergency policies kick in.  After the threat is scrubbed, new countermeasures are likely put in place to prevent the accident from happening again.  But with Crypto, the loss can be huge.
Here's the list of the top 50 Cybersecurity firms founded since 2017, for the full list including funding amounts, investors, and more - contact us.

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