Security Startups show no signs of slowing down

Having worked in the Security Domain for the past 5 years (4 years with PGP Encryption team at Symantec and 1 year with MDM/MAM team at MobileIeon), the fundraising potential of Security companies still amazes me.
Ironic, but few days back we got hacked for ransomware.

Security companies play on fear, the fear of loss. They are in some way the modern day security guards and insurance companies for data.

Why I’m writing this?
– Last year Symantec sold their data business and decided to focus on security alone. They raised significant capital and acquired a number of companies including BlueCoat.
– MobileIron turned profitable and is rapidly growing.
– iSight partners(I was closely associated) was acquired by FireEye for upwards of $400 Million.

Let’s look at the fundraising scene for security startups in 2016:

• Over 500 companies raised funding in 2016.
• 141 seed rounds – There’s still room for growth
• Seed->Seria A->B->C->D ratios are high compared to other industries.
• 5 companies have raised over $100 Million dollars
• 120 companies have raised over $10 Million dollars
• Together they have raised over $4 Billion dollars in financing in 2016 compared to $ 2.2 Billion in 2015.

P.S.
– This Data is Sourced from StartupFlux Platform
– This data does not include Debt Financing, IPO’s or secondary market sales.