How to Invest in Cybersecurity
Invest in Cybersecurity Companies and Startups
About the Cybersecurity Industry:
If you want to invest in the cybersecurity industry, you need to know about the industry, how it works, and what's changed in the cybersecurity landscape, globally. Dozens of startups are positioned for strong growth in cybersecurity over the next few years, and new companies hit investment rounds every month. One company poised to thrive is CipherCloud, which we covered in our section on the hottest software startups. Another startup poised for success in the cloud security arena is SkyHigh Networks.
Founder Rajiv Gupta says that part of SkyHigh Networks' success is that it collaborates with larger security companies rather than competing with them. In launching SkyHigh Networks, Gupta and his cofounders looked for the hole in cloud security they could plug. Rather than developing another solution simply to protect cloud networks or data, Gupta and his team addressed the psychological needs of companies directly. Specifically, SkyHigh Networks offers technology that lets companies analyze cloud–based security risks, monitor and manage employee cloud behaviors, and encrypt data stored on the cloud. The company secured $66.5 million in investments over three rounds since 2012.
Other companies to watch in this sector include Shape Security, Palo Alto Networks, Recorded Future, LaunchKey, 405 Labs and CrowdStrike.
How is cybersecurity changing and evolving?
Cybersecurity has already taken off, and rapidly evolving technology keeps the floor swept for new startups and success. Growing sophistication among hackers and cyber criminals mean legit operations have to work even harder to keep up, and there's always a new threat or security need to be addressed. Since companies can't cut networks and Internet from their processes, cybersecurity products will continue to be a major need.
Every five years or so, the industry sees a major architectural shift in how businesses and people use computers and technology. Recent shifts have been to cloud and mobile, and experts are expecting future shifts to include genetics, biotech integrations with computers, and increasing virtual environments. Each shift drives a new wave of startup and investing opportunities.
The globalization of economies and businesses also drives cybersecurity. Users are more connected than ever before, but laws, cultures, and infrastructures are not. Businesses that can't rely on global governments to protect virtual assets are willing to pay for services and products that will.
How should companies invest in cybersecurity?
Cybersecurity should be priority number one for today’s publicly traded companies. With a fiduciary and moral duty to protect shareholders, consumers, and employees, we’re calling on the Boards of other Fortune 500 companies to act responsibly and defend your networks. In fact, here are publicly listed cybersecurity companies helping to protect against cyber attacks.
Top Recommendations for Investing in Cybersecurity:
#1 Publicly traded cybersecurity companies
Palo Alto Networks (best in class)
#2 Privately held companies - cybersecurity startups
Angel Kings' Cybersecurity Fund
The cybersecurity investment fund is focused on showing investors smart investments in cybersecurity companies from Palo Alto to Israel, and around the world.
This investment fund provides opportunities for investors to get into early-stage cybersecurity companies.
The cybersecurity fund includes the following:
Top Deal Flow For Cybersecurity Investors
Research and Analytics on Cybersecurity Companies
Investing Tools for Cybersecurity Investors