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A FEW OF OUR HAPPY CUSTOMERS
The most publicly reference-able customers of anyone in the industry
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ABOUT THE ANALYST
William Altman
Tech Industry Analyst, CB Insights
Focuses on cybersecurity and macro venture capital trends
Published research and data analysis has been featured in The New
York Times, CNN, Bloomberg, Financial Times, and The Wall Street
Journal
@AltmanW
Previously worked as an Associate in the Wamda Research Lab in
Amman, Jordan and Beirut, Lebanon
Graduate of Denison University 12 (B.S.), and MIIS 14 (M.A.)
waltman@cbinsights.com
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TABLE OF CONTENTS
7 Cybersecurity funding trends 40 IoT Security
15 Cyber Defender categories 46 Mobile Security
16 2017 Cyber Defenders 50 Automobile Security
19 Quantum Encryption 55 Critical Infrastructure Security
23 Predictive Intelligence 60 Cyber Insurance
29 Deception Security 64 Appendix
33 Autonomous Systems 68 Methodology
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The global cyber threat landscape is
large, complex, and varied
VCs are seizing the opportunity to fund the next
generation of cybersecurity startups
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Cybersecurity is a phenomenal investment
area because companies need to fight back
against hackers that are already inside the
perimeter. Moreover, unlike most enterprise
software, continually enhanced solutions are
required because aggressors are always
changing their tactics.
Donald R. Dixon
Co-founder & Managing Director, Trident Capital Cybersecurity
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Cybersecurity funding with VC participation:
$12.5 BILLION
across
1,222 DEALS
2012 - 2016
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CYBERSECURITY ANNUAL VC FINANCING HISTORY
2012 - 2016 CONSISTENT ACTIVITY
279 278 IN CYBERSECURITY
273
Investors participated in
216
over 270 deals to VC-
backed cybersecurity
176
companies the last three
years running.
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CYBERSECURITY VC INVESTMENT ACTIVITY BY STAGE
2012 - 2016 NEW SOLUTIONS ARE
STILL ON THE HORIZON
7% 9% 6% 8%
11%
9%
6% 8%
8% 5% The largest share of
3% 5%
6% 6%
1%
8%
deals to companies with
8% 9%
10%
4% VC backing in
17%
14% 16% 17% cybersecurity still goes to
11%
startups at the early
stages (Seed / Series A).
22% 29% 25%
26%
30%
Series A deals took a
larger share of the total
over the time period.
31% 34% 32% 33%
26%
www.cbinsights.com 11
PRIVATE LEADERS: CYBERSECURITY COMPANIES VALUED AT $1B+ EIGHT UNICORNS IN
2012 2017 YTD (3/27/2017) CYBERSECURITY
Tanium (USA) Select Investors: Executive Press, Nor-Cal Invest, Institutional Venture Partners, Andreessen Horowitz
Date reached $1B+ valuation: 3/31/2015
$3.5B
Okta (USA) Select Investors: Sequoia Capital, Khosla Ventures, Greylock Partners, Andreessen Horowitz Tanium, valued at $3.5B,
Date reached $1B+ valuation: 9/8/2015
$1.11B is the most valuable
CloudFlare (USA) Select Investors: Venrock, Union Square Ventures, Pelion Venture Partners, New Enterprise Associates
Date reached $1B+ valuation: 12/1/2012
private cybersecurity
$1B
company in the world.
Illumio (USA) Select Investors: Data Collective, General Catalyst Partners, Andreessen Horowitz, Accel Partners
Date reached $1B+ valuation: 4/14/2014
$1B
Okta filed for IPO on
AVAST Software (CZ) Select Investors: Summit Partners (Growth Equity), CVC Capital Partners (Private Equity)
Date reached $1B+ valuation: 2/5/2014
3/13/2017.
$1B
Lookout (USA) Select Investors: Lowercase Capital, Greylock Partners, Khosla Ventures, Andreessen Horowitz, Accel Partners
Date reached $1B+ valuation: 8/13/2014
AVAST, located in the
$1B
Czech Republic, is the
Cylance (USA)
$1B
Select Investors: Ten Eleven Ventures, Khosla Ventures, Fairhaven Capital, DFJ Growth Fund
Date reached $1B+ valuation: 6/8/2016 only non-US unicorn.
Zscaler (USA)
$1B
Select Investors: capitalG, EMC Ventures, Lightspeed Venture Partners
Date reached $1B+ valuation: 8/3/2015 Cylance is the only new
cybersecurity unicorn to
emerge in 2016.
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CYBERSECURITY + AI / ML ON THE RISE AI + CYBERSECURITY
UP AND TO THE RIGHT
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THIS YEARS CYBER DEFENDER CATEGORIES
Quantum Encryption Predictive Intelligence Deception Security
the future of secure digital tools to identify threats early startups turning the tables
communications and help prevent attacks by deceiving attackers
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2017 CYBER DEFENDERS
Quantum Encryption Predictive Intelligence Deception Security
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THE US HAS THE MOST
CYBER DEFENDERS
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Quantum Encryption
The science of exploiting quantum mechanics for
cryptography. The best known type of quantum
encryption is quantum key distribution (QKD). QKD
uses quantum mechanics to secure communications
by enabling two parties to produce a shared random
secret key known only to them, which can then be
used to encrypt and decrypt messages.
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QUINTESSENTIAL SECRECY
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Are we going to be able to
predict every attack? No. Are
we going to be better about
predicting trends and threats
so that were ahead of the
game? Yes.
Terry Halvorsen
Chief Information Officer, U.S. Department of Defense
.
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DECEPTIVE STRATEGY
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"You can't say that you are
going to replace your analysts.
What ends up happening is that
you put your analysts to better
use. It saves you from getting
additional people.
Golan Ben-Oni
CIO at IDT Corporation
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We are in a massive paradigm shift from
an IT perspective, we are connecting our
physical lives and our bodies to digital
tools, and it changes the way we have to
think about managing security. As we
bring more devices online, we are seeing
the number of attacks on these devices
go up proportionally.
Chris Young
General Manager of the Intel Security Group
With applications in a
wide array of industries,
as well as a series of
high-profile attacks,
securing the IoT is
currently enjoying a wave
of attention.
www.cbinsights.com 46
RESPECT MY AUTHORITY
Description: Appthority provides a cloud-based
platform that identifies and grades risky behavior in
mobile apps including known and unknown malware,
corporate data exfiltration, and intellectual property
exposure. The companys mobile security solutions
are built for the needs of enterprise security and
mobility teams.
Total Funding: $23.3M
Select Investors: Venrock, US Venture Partners, Trident
Capital Cybersecurity, Blue Coat Systems
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We are obviously securing our
ecosystemand securing is a relative
word as theres no absolute security
and employing layers of defensive
measures in our vehicles and
services. Its a defensive posture and
the ability to not only detect and
monitor but to respond.
Jeff Massimilla
Chief Product Cybersecurity Officer at General Motors
Undisclosed
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One attack on a single point of failure
could lead to the disruption or destruction
of multiple vital systems in the country
directly affected, and a ripple effect
worldwide. This creates an appealing
target to those intending to harm us. And
as our cities and infrastructure evolve, so
do their weapons.
Jrgen Stock
Secretary-General of the International Criminal Police
Organization (ICPO-INTERPOL)
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CYBER INSURANCE IN THE MEDIA IN 2017:
PUBLIC SECTOR BANKS RUSH TO GET CYBER
INSURANCE POLICIES
3/13/2017
www.cbinsights.com 61
EN GARDE!
Description: UpGuard offers CSTAR, a cybersecurity
preparedness score for enterprises. The score allows
businesses to understand the risk of breaches and
unplanned outages. It also offers insurance carriers a
new standard by which to effectively assess client risk
and compliance profiles.
Total Funding: $27.4M
Select Investors: Valar Ventures, Square Peg Capital,
Insurance Australia Group, 500 Startups
www.cbinsights.com 65
CYBER DEFENDERS MOST WELL-FUNDED COMPANIES SILENT CIRCLE ON TOP
2012 2017 YTD (3/20/2017)
Rank Company Disclosed Cyber Defender Category
Funding
($M)
SentinelOne and
1 SentinelOne $109.5 Predictive Intelligence Darktrace are the only
2 Darktrace $107.3 Autonomous Systems Cyber Defenders to raise
over $100M.
3 BitSight Technologies $87 Cyber Insurance
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CYBER DEFENDERS MOST ACTIVE VC INVESTORS BESSEMER VENTURE
Measured by number of deals 2012 2017 YTD (3/27/2017) PARTNERS ON TOP
Rank Investor Investments In Cyber Defenders
1 Bessemer Venture
Bessemer Venture Partners Auth0 (Seed, A, B), illusive networks (B, B-II), PhishMe (C)
Partners is the only VC to
2 participate in more than
Google Ventures Anomali (A,B,C), Acalvio Technologies (B)
five deals to Cyber
2 Accel Partners SentinelOne (seed, A), Acalvio Technologies (A, B)
Defenders since 2012.
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MOSAIC MONEY SCORE COMPARISON CYBER DEFENDERS ARE
Cyber Defenders vs. All Cybersecurity Companies HIGH-MOSAIC
COMPANIES
CB Insights data-driven
Mosaic Money metric
assesses financial
signals including recency
of funding and total
raised, etc. And scores
901 companies on a scale of
0-1000.
566
How the 9 categories were selected: To identify our categories, we used CB Insights Trends
tool, which mines and organizes million of media articles to quantify media attention to tech
trends.
How the 30 companies were selected: We used CB Insights Company Mosaic, which uses
data to track private company health, using signals including recency of financing, total raised,
and investor quality. Weve gathered this data via our machine learning technology (dubbed
The Cruncher) as well as via several thousand direct submissions from firms and individual
professionals using The Editor.
The CB Insights Mosaic page walks through the factors considered in the algorithm in some
detail.
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