INDUSTRY BLUEPRINT:

CYBERSECURITY

TABLE OF

CONTENTS

Executive Summary

Ecosystem Industry Jargon

Industry Landscape Industry Size and Forecasts: Industry Dynamics

Funding Activity

Corporate Investment Analysis Start-up Propensity

Wavteq Institute Disclaimer References

3

5

6

7

8

10

12

18

26

29

30

30

EXECUTIVE SUMMARY

Industry Blueprints: Cybersecurity- Redux

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The global cybersecurity industry has been booming in recent years, especially during the post-pandemic recovery period, as workplaces are committing to digital innovation. Compared to a market size of USD 125 billion in 2021, the growth forecast of the global cybersecurity industry is a mighty USD 299 billion by the end of the decade. With cyber-attacks spiralling as a concern and nations investing heavily to tackle it, inevitably, 2022 will witness the global industry funding surging to hit USD 134 billion. While innovations in cloud and data services have helped North America, which was the largest market in recent years, register a CAGR of over 7% by 2026, APAC is predicted to take advantage of the same to grow at the fastest pace by 2030.

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CYBER DEFENCE IS THE NEED OF THE HOUR

The burgeoning deployment of advanced digital functionalities like machine learning, Internet of Things, and cloud services is paving the way for acute data and security risks for organisations. AI largely helps in the robust detection of threats, but the same is likely to be abused for cyber attacks. These attacks can entirely disrupt supply chains and cause severe damage to the operational and financial efficiency of companies, especially in firms utilising zero-trust architecture. Governments are also counting on cybersecurity advancements to ensure that their administrative infrastructure, networks, and critical defence data and information are protected against hacks, ransomware, and potential breaches. This habitual dependency on technology and the massive set of vulnerabilities that piggyback on, are instigating the need for over-the-horizon cyber defensive capabilities, which will not only keep the dangers of the cyberworld at bay, but also be of great advantage to the economy and in innovation. Tech leaders like Google have a few years ago masterminded resolution of security breach issues, to urge fellow companies to prioritise cyber defence, and companies like Cisco are having data privacy as a top responsibility. Moreover, acquisitions in the sector are key in collectively strengthening their threat management capacity- over 400 mergers and acquisitions happened in 2021. This will by all means account for an increased cyber spending as predicted by 69% organisations according to PwC, with the maximum spending recorded in recent times being in security services.

​

In this blueprint, we present a factual outlook of the global cybersecurity market, with a focus on 800+ firms from a dataset of over 5000 firms, out of which 29.2% firms have a geographical presence in more than one country.

INDUSTRY SNAPSHOT

Industry Blueprints: Cybersecurity- Redux

London

Singapore

New York

Tel Aviv

Tokyo

Sydney

San Francisco

Bangalore

Dubai

Munich

Africa

Asia-Pacific

Europe

Middle East

United States

Israel

United Kingdom

India

Canada

China

France

Germany

Australia

Switzerland

NUMBER OF COMPANIES

474

64

49

26

25

20

15

11

11

10

Latin America &

Caribbean

Employee

Range

Number of Companies

Latin America & Caribbean

DISTRIBUTION BY SOURCE REGION

HQ AND DESTINATION

​

Africa Asia-Pacific

Europe

North America

Middle East

HQ COUNTRY

1

0

9

0

1

3

0

21

34

1

15

134

0

0

0

0

9

3

5

22

52

0

1

37

1

16

27

67

9

50

1

7

62

2

19

149

16

80

7

7

79

35

35

9

6

39

38

33

27

​

40

5

40

33

5

35

4

HQ COUNT

DESTINATION COUNT

GLOBAL HOTSPOTS

DISTRIBUTION BY COMPANY SIZE

DISTRIBUTION BY SOURCE COUNTRY

1 472

11-50 51-500

42 25 6 5

501-1000 1001-5000 5001-10000 10001+

North America

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474

ECOSYSTEM

Industry Blueprints: Cybersecurity- Redux

BLOCK CHAIN

WEB SECURITY

THREAT INTELLIGENCE

INTERNET OF THINGS

END POINT SECURITY

SECURITY OPS & INCIDENT RESPONSE

RISK & COMPLIANCE

MESSAGING SECURITY

DIGITAL RISK MANAGEMENT

CLOUD SECURITY

FRAUD & TRANSACTION SECURITY

NETWORK & INFRASTRUCTURE SECURITY

APPLICATION SECURITY

MSSP (MANAGED SECURITY SERVICE PROVIDERS)

SECURITY & CONSULTING SERVICES

MOBILE SECURITY

PURE PLAY CYBER SECURITY

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CYBER INSURANCE

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CYBER SECURITY BENEFACTORS

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CLOUD PROVIDERS & SERVICES

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SECURITY TRAINING & AWARENESS

IDENTITY ACCESS & MANAGEMENT

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INDUSTRY JARGON

Industry Blueprints: Cybersecurity- Redux

THE CLOUD SECURITY

A component of computer security deals with the policies, technologies, and controls put into place to protect data, applications, and the associated infrastructure of cloud computing.

DATA LOSS PREVENTION

Set of tools and processes used to ensure that sensitive data is not lost, misused, or accessed by unauthorized users.

RANSOMWARE

A specific type of malware that requires some sort of payment to either remove the malware or to retrieve files that had been encrypted by the malware in order to gain monetary benefit.

ENDPOINT PROTECTION PLATFORMS

A combination of endpoint security

technologies such as antivirus, data encryption, and data loss prevention that work together on an endpoint device to detect and prevent security threats like file-based malware attacks and malicious activity.

RISK MANAGEMENT

Information risk management defines

the areas of an organization’s information infrastructure and identifies what information to protect and the degree of protection needed to align with the organization’s tolerance for risk.

PHISHING

A specific form of social

engineering used to gather personally identifiable information.

DATA PRIVACY

A combination of endpoint security technologies such as

antivirus, data encryption, and data loss prevention that work together on an endpoint device to detect and prevent security threats like file-based malware attacks and malicious activity.

COMPLIANCE

Compliance means creating a program that establishes risk-based controls to

protect the integrity, confidentiality, and accessibility of stored, processed, or transferred data.

CYBER ESPIONAGE

The act of stealing secrets from one company or individual via the Internet to use them for personal, or more often, political or military, gain.

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Industry Blueprints: Cybersecurity- Redux

INDUSTRY LANDSCAPE

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​

​

By some estimates, cyber security is expected to globally cost up to

$6 trillion annually.

Losses of this scale put the incentives for innovation and investment at risk and will be more profitable than the gloal trade of all major illegal drugs combined.

​

​

DAVID KENNEDY,

FOUNDER OF TRUSTEDSEC

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INDUSTRY SIZE AND FORECASTS

Industry Blueprints: Cybersecurity- Redux

NORTH AMERICA AS GLOBAL CONSUMER

The dramatic digital transformation underway worldwide, driven by the disruptions from COVID-19, is fuelling a surge of technology innovation and sparking economic growth opportunities across global markets. Over the last two years, we’ve seen the unprecedented growth of digital innovation. Companies across all sectors have experienced a spike in cyberattacks as COVID-19 reshaped the workplace.

​

Post Covid-19, governments have increased the number of initiatives for cybersecurity such as the Spanish government committing $480 million to the cybersecurity industry. Worldly Cybersecurity is more crucial than ever, and fortunately, there are plenty of cybersecurity unicorns ready to transform the technology.

Most developed nations ratify that cyber-attacks and digital spying are the top threat to the country's security, more than terrorism. Subsequently, the scope for Cyber security professionals in data protection systems of the nation, companies, etc., is vast.

North America was the largest market from 2014–to 2019, due to the shift toward multi-cloud environments, rapid implementation of data centre services, high emphasis on leveraging advanced data analytics tools, and the presence of a vast number of cloud service providers. Consequently, key market players are focusing on launching new security services and solutions and the addition of new features to existing security services, to offer better security support to business organizations. Whereas it is expected that the cybersecurity market in North America will register a lucrative growth from 2020 to 2026 at a CAGR of over 7%.

​

ASIA-PACIFIC (APAC) REGION GROWING AT FASTEST PACE

The APAC region will witness the fastest growth between 2020 and 2030. Owing to the increasing traffic on online portals, a rapid shift toward cloud computing, and surging deployment of big data analytics in business operations. Moreover, the cyber security market growth in APAC can be due to the flourishing e-commerce industry and zooming requirement for safeguarding customer data. Additionally, the mounting number of data breaches, swift digital transformation, amplifying usage of connected devices, and burgeoning awareness regarding cybersecurity in India, Malaysia, and Singapore are inching towards growth.

The global cybersecurity market size was US$ 125.1 billion in 2021 and The global cybersecurity market is expected to grow to US$ 299.1 billion by 2030 by growing at a compound annual growth rate (CAGR) of 10.1% during the forecast period from 2022 to 2030.

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Industry Blueprints: Cybersecurity- Redux

CYBERSECURITY INVESTMENT PRIORITIES IN THE NEXT YEAR*

MULTI-LAYERED SOLUTIONS VITAL FOR CYBERSECURITY

WORLDWIDE 2021 CYBERSECURITY FORECAST: GROWTH RATES BY TECHNOLOGY

CYBERSECURITY MARKET, BY ORGANISATION SIZE (2017-2026)

ARTIFICIAL INTELLIGENCE

MOBILE COMPUTING

43%

51%

43%

41%

14%

7%

HIGH MEDIUM LOW

LARGE ENTERPRISE

SME’S

2017 2018 2019 2020

2021 2022 2023 2024 2025 2026

WEB AND EMAIL SECURITY

VULNERABILITY AND SECURITY ANALYTICS

ENDPOINT SECURITY

NETWORK SECURITY

DATA SECURITY

IDENTITY ACCESS MANAGEMENT

Source : Canalys Forecast, January 2021

*Fields may not add to 100% due to rounding

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52%

17%

FUNDING ACTIVITY

Industry Blueprints: Cybersecurity- Redux

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SECURITY SERVICES

NETWORK SECURITY EQUIPMENT INTEGRATED RISK MANAGEMENT

INFRASTRUCTURE PROTECTION IDENTITY ACCESS MANAGEMENT DATA SECURITY

2018 2019 2020 2021 2022 2023

-40000

160000

CYBERSECURITY SPENDING ($, M)

9%

9%

9%

9%

8%

Global Cybersecurity Funding is anticipated to Hit $133.7 Billion In 2022, with the rise of cybercrime, more money is being paid to both preventing it and dealing with its consequences. According to The statistics, the global annual investment in cyberattacks will rise by almost $134 billion in 2022.

According to PwC, 69% of organizations predict a rise in their cyber spending for 2022.

Gartner estimated that funding in information security and risk management will total $172 billion in 2022, up from $155 billion in 2021 and $137 billion in 2020.

As per Gartner; almost $77 billion will go to managed security services in 2022; $30 billion will be used for infrastructure protection; $19 billion for network security equipment.

Other areas getting big budgets include application security ($6.6 billion), integrated risk management ($6.4 billion), data security ($4 billion), software ($2.7 billion), and cloud security ($1.4 billion).

Investors infused $11.5 billion in total venture capital financing into cybersecurity start-ups in the first half of 2021, up from $4.7 billion during the same period a year earlier.

More than 36 of the 430 total transactions exceeded the $100 million mark, according to Momentum. Cybersecurity Ventures tracked more than $23 billion in Venture Capital for Cybersecurity Companies in 2021.

M&A volume also saw a massive increase during the first six months of 2021, with significant deals for companies in cloud security, security consulting, and risk and compliance. Total M&A volume reached a record-breaking $39.5 billion across 163 transactions, according to Momentum, more than four times the $9.8 billion spent in the first half of 2020 across 93 transactions.

INDUSTRY DYNAMICS

Industry Blueprints: Cybersecurity- Redux

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Board oversight of cyber security is no longer a leading practice, it is necessity. Investors, governments and regulators are increasing demands and challenging boards to demonstrate diligence and leadership

​

MARK TIMS

PARTNER, TECHNOLOGY RISK, KPMG

INDUSTRY TRENDS

Industry Blueprints: Cybersecurity- Redux

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THE RISE IN THE INTERNET OF THINGS (IOT) DEVICES

The expanding Internet of Things (IoT) creates more risk for cybercrime. By 2026, there will be 64 billion IOT devices installed around the world. The trend towards remote working is helping to drive this increase. The IoT expands businesses to newer markets, however, the constant connectivity and data sharing also create new opportunities for information to be compromised.

Hence, the industry is developing new technologies to cater the cyber security needs.

INCREASE IN CLOUD SERVICES AND CLOUD SECURITY THREATS

Cloud exposure persists as one of the biggest cyber security industry trends. Due to the pandemic, the necessity for cloud-based services and infrastructure increased

drastically, with security

implications for organizations. The average cost of a data breach is

$3.86 million; hence organizations must take steps to curb cloud threats.

STEADY RISE OF ARTIFICIAL INTELLIGENCE (AI)

Organisations are rapidly shifting to AI and machine learning to hone their security infrastructure. Therefore, organizations that suffered a data breach but had AI technology fully deployed saved an average of $3.58 million in 2020.

While AI presents a significant opportunity for more robust threat detection among businesses, criminals are also taking advantage of the technology to automate their attacks, using data-poisoning and model-stealing techniques.

INCREASE IN SUPPLY CHAIN INVASIONS

Cybercriminals have worked out that the best way to target large enterprises with solid defences, is to attack a smaller, less well-defended supplier who can give them a backdoor. Alongside this, phishing continues to be the single most common form of attack. A Supply Chain prone to cyberattacks can lead to vital operational disruptions, substantial damage to brand and reputation, product safety, loss or theft of intellectual property and substantial fines and fees.

INCREASED INTEREST IN DATA PRIVACY

Cisco reports that Data Privacy has become a top area of responsibility for Security professionals, with 34% of survey respondents indicating Privacy is one of their core competencies and responsibilities.

There are various federal, state-level, and international data privacy laws that today’s companies need to comply with.

Industry Blueprints: Cybersecurity- Redux

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0

>3.95

45 16 5

2.00-2.50 2.50-3.00 3.00-3.95

MATURITY LEVEL OF COMPANIES’ OVERALL CYBER RISK MANAGEMENT, ON A SCALE OF 1 TO 4, WHERE 4 IS STRONGEST % OF COMPANIES

AT MINIMUM, A ROBUST LEVEL OF MATURITY INCLUDES:

Qualitative and quantitative approaches to evaluative and mitigating cyberrisks

Defined cybersecurity-governance model with clearly identified individuals accountable for each asset

34

​

​

​

​

​

​

​

​

​

​

​

​

<2.00

SCORE

GROWTH DRIVERS

Industry Blueprints: Cybersecurity- Redux

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CLOUD SERVICES

Cloud Services could open companies to a more elevated risk of cyber-attack and increase the demand for cloud security and web application security services.

The healthcare industry is employing cloud

technology more and more abundantly for several

usages, including data storage, device

interconnectivity, and communication. Protecting this

type of data stored in clouds is of utmost importance, as this data is often sensitive and personal.

SMART DEVICES

As the internet is becoming a dependency, a cyberattack is more accessible with smart home appliances such as fridges, cars, drones, and industrial machines.

Medical devices also employ IoT technology for connectivity and data sharing. The IoT could lead to a dramatic extension of the attack surfaces that hackers can target within a typical company hence, companies are sourcing new ways to tackle it.

MERGERS AND ACQUISITIONS

MNCs such as IBM, Oracle, SAP, Microsoft, and Alphabet—are all rushing to build software ecosystems. For networking equipment makers like Cisco, security is essential in their offering.

M&As in this sector has increased among the big software houses, internet ecosystems, and networking equipment makers, thus strengthening their cybersecurity capability, especially in unified threat management and artificial intelligence (AI).

INCREASED ADOPTION OF ZERO-TRUST SETUP

The pandemic raised new opportunities for cybercriminals to access networks as employees rapidly shifted to working from home and the IT

departments struggled to make network

resources available outside the office walls.

Adopting a zero-trust framework is a journey, and there is no single solution, but organizations must move quickly to implement access control policies, authentication and least-privileged environments that will protect valuable data assets.

THE RAPID EXPANSION OF DATA AND DIGITAL CONNECTIVITY

Huge global growth in internet access and usage, underpinned by data and the infrastructure upon which data use relies, is creating new markets and increasing global expansion to several regions as countries are dependent on digital media for all the essential services. We can observe well-established sectors relying on technology for datasets and analysis hence cybersecurity is a driving factor as the growth comes with rising risks such as Ransomware.

ANDROID FRAGMENTATION

There are different Android OS versions available and operational in the digital world. When a security breach occurs, the company's ability to quickly patch the breach is limited. Instead, it's the device makers or telecom operators that decide if, when, and how to release software updates.

In October 2016, Google took a big step to fix this Android fragmentation problem by introducing Pixel, a smartphone with hardware and software that is entirely controlled by Google. This has resulted in boosting the confidence of other companies to step up their cybersecurity policies.

CYBERSECURITY IMPACT

Industry Blueprints: Cybersecurity- Redux

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MILLENIALS ARE MORE LIKELY THAN ANY OTHER GENERATION TO UNINTENTIONALLY EXPOSE SENSITIVE DATA TO HACKERS.

Sources: IBM and analysis by Wavteq Corporate Intelligence Unit

OF MILLENNIALS USE THEIR WORK DEVICES AT HOME

74%

_73.5% OF MILLENNIALS USE THEIR WORK DEVICES ON THE GO

OF MILLENNIALS USE THEIR WORK DEVICES FOR PERSONAL ACTIVITIES.

79%

EMPLOYEE-CAUSED INCIDENTS

​

INTERNAL EMPLOYEES WERE THE CAUSE OF

THE STATE OF CYBER SECURITY

OPPORTUNITIES

Industry Blueprints: Cybersecurity- Redux

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IT SUPPORT AND COMPLIANCE

IT support is a crucial area for government organizations to focus on. Cybersecurity has risen up the country and company agendas. Its link to governance and reputational risk makes it an increasingly protected part of corporate spending.

However, by investing in cybersecurity measures such as the Australian government partnering with the leading IT support Melbourne has to offer, organizations can improve their IT support efforts significantly.

When a country boasts a secure data environment, the ability to do things like collect taxes and operate essential services improves significantly. This benefit is due to better data security, data

integrity, improved data analysis, increased accessibility of information,

and more adequate data sharing. The public sector is especially vulnerable to ransomware due to a patchwork of

outdated technology and operating

systems across healthcare, education, and local and central government.

ENHANCE PUBLIC ADMINISTRATION

ENHANCE ECONOMIC GROWTH

Cyberattacks can cause economic damage, such as disrupting supply chains or causing cybercrime. These attacks can also result in brand damage for businesses, affecting their ability to operate and grow financially. But by investing in cybersecurity measures, governments can avert these types of events from happening and contribute to the nation's economic growth.

FOSTER INNOVATION

Investing in cyber security can help solve concerns at once. If government agencies can assure systems from outside threats, then they can grow their internal capabilities without spending money on new tools or hardware upgrades. This process promotes innovation and efficient asset control.

these demanding times, they need

technology-conscious solid leaders who understand the profoundness of cybersecurity.

SAFEGUARD NATIONAL INFRASTRUCTURE

‘Crucial’ infrastructure refers to any system necessary for society’s essential functions, including energy, water supply, healthcare facilities, or emergency services. For governments to survive and thrive in

companies providing Critical infrastructure security, Network

security, Equipment application security etc.

IMPROVE DEFENCE SYSTEMS

One of the government’s apparent responsibilities is national defence, and this responsibility has become more complicated in recent years. National security matters raise the importance of data security for defence manufacturers. The attackers may use cyberspace to disrupt critical infrastructure and attack military and government networks. The best way for governments to protect themselves against these threats is to invest in cybersecurity

Industry Blueprints: Cybersecurity- Redux

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2017

Billions of internet users

Percentage of internet users in the ratio of world’s population

3.81

6

7.5

THE PROJECTED GROWTH OF INTERNET USERS

​

90%

​

75%

​

​

51%

2022

2030

YEARS

CORPORATE INVESTMENT ANALYSIS

Industry Blueprints: Cybersecurity- Redux

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OVERVIEW

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In our dataset of over 5100+ cyber security firms, around 54% of the firms are based in North America, 23% are in Europe, 13% in

APAC, and the rest in other parts of the world. We took a sample set of 800+ companies to do the study on investment trends and patterns. Based on the sample data set, approximately 61.5% of companies are based in North America, 16.7% in Europe, 11.6%

in APAC, and the rest in the Middle East, Latin America & the Caribbean & Africa.

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It has been observed that the cybersecurity industry started its growth trajectory after 1990. To corroborate this statement, the number of firms founded between 1991 and 2000 was 314, an upsurge of 257% from the past decade.

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Around 818 companies were founded between 2001 and 2010, a hike of 161% as compared to the previous decade.

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This number shot up to 2882 in the decade spanning between 2011 and 2020, a 252% increase from the past decade

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In 2021 we have added around 200+ companies around the world which are more than 10 employees in size.

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Most of the firms have chosen the United Kingdom, United States, India, Singapore, Australia, Germany, Japan, Canada, Israel,

and the United Arab Emirates to open their overseas operations.

​

In our sample dataset, approximately 17.6% of the cleantech firms have a geographical presence in at least one country, while

29.2% have a geographical presence in more than one country.

Industry Blueprints: Cybersecurity- Redux

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120

US

55

CANADA

25

MEXICO

1

BERMUDA

DESTINATION COUNTRY

NUMBER OF COMPANIES

Based on our sample dataset, only 43.7% of the North American companies have expanded their footprint globally.

Approximately 33.7% of the firms have expanded their footprint in the Europe region and 30.3% in APAC. However, only 14% of the firms have expanded within the North American region.

UK is the leading destination for the region, around 11.5% in the UK. Similarly, 8.8% in India, 6.2% in Singapore, 5.7% in Australia and 4.9% in Japan.

In Canada, around 80% of the investment is coming from the US market, 5.5% from the UK, 3.6% from the Netherlands & India, and the rest from Singapore, Germany, France, and Japan.

In the US, around 29.8% of the investment is coming from Israel, 17.4% from the UK, 8.3% from India, and 6.6% from Canada.

​

In Mexico, around 68% of investment is coming from the US, and 12% is from Spain.

INVESTMENT ACTIVITY: NORTH AMERICA

​

The top source market for the region is the US, with around 95% of the North America-based companies being headquartered in the US and the rest in Canada. We found similar trends for companies that were founded after 2020.

Industry Blueprints: Cybersecurity- Redux

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INVESTMENT ACTIVITY: EUROPE INCLUDING UK

​

The top source markets in the region include the UK, France, and Germany with around 36%, 11%, and 8.1% of the firms being headquartered in these countries, respectively.

​

Approximately, 29.4% of the firms have expanded their footprint in the North America region, 20% in North APAC, and 30.6% within the European region.

​

Nearly 13.1% of the firms have expanded their footprint in the US. Similarly, 5.5% each in Germany & the UK, 4.5% in Singapore, and 3.7% in UAE.

​

Around 74.1% of the investment coming to the UK is from North American-based companies. However, only 14% of the investment comes from Europe. A similar investment pattern has been observed for the Netherlands, Germany, France, and Switzerland.

​

Around 21.6% of UK-based companies are choosing the US for overseas expansion. Similarly, 9.3% in the Singapore market, 7.2% in the UAE, and 5.2% each in Australia & Germany.

143

UNITED KINGDOM

74

GERMANY

45

FRANCE

24 24 20

ITALY SWITZERLAND DENMARK

32 29

IRELAND SWEDEN

43 33

NETHERLANDS SPAIN

DESTINATION COUNTRY

​

NUMBER OF COMPANIES

Industry Blueprints: Cybersecurity- Redux

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INVESTMENT ACTIVITY: APAC

​

The top source markets in the region include India, China, Australia, South Korea, and Singapore with around 27.7%, 21.3%, 11.7%, 8.5%, and 7.4% of the firms being headquartered in these countries, respectively.

​

Approximately, 36.7% of the firms have expanded their footprint in the North American region, 15% in the European market, and 35% within the APAC region.

​

Around 20.0% of APAC-based firms have expanded their footprint in the US. Similarly, 6.4% in Singapore, 5.5% each in the UK & Australia, and 4.6% in India.

​

Asia-Pacific is the second leading destination market for cyber security companies. Around 27% of the global market share is held by APAC. The number of investments received by the region is only 3.4% less than Europe’s investment numbers.

​

Around 80.2% of investments are coming from North America-based companies in India similarly, 77.2% are from the US, and the rest from Canada, with 10% from Europe and 4% from North America.

However, the country receives nearly 5% of its investment from its home continent. A similar investment pattern has been observed for Singapore and Australia.

​

Around 71.7% of investments are coming from US-based companies in Japan, and 13% are from Israel-based companies.

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DESTINATION COUNTRY NUMBER OF COMPANIES

​

India 101

​

Singapore 87

​

Australia 74

​

Japan 60

​

China 26

​

Hong Kong 18

​

South Korea 18

​

Philippines 14

​

Malaysia 12

​

New Zealand 11

Industry Blueprints: Cybersecurity- Redux

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INVESTMENT ACTIVITY: MIDDLE EAST

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The top source market for the Middle East is Israel, with around 87.7% of the firms being headquartered in the country and 8.2% of companies based in the UAE.

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Approximately 34.6% of the Middle Eastern firms have expanded their footprint in the US, 8.4% in the UK, 7.5% each in Japan & Germany, and 5.6% in Singapore.

​

Around 34% of the Middle Eastern firms have expanded their footprint in the Europe market and 22.2% in the APAC market.

​

Israel is the leading destination as well as a source market in the region for the cyber security industry. Around 93% of investments come from the US market. Tel Aviv is the second leading source city for cyber security companies.

​

In the UAE, around 54.3% of investments come from the US market, and 15.2% from the UK market.

DESTINATION COUNTRY

NUMBER OF COMPANIES

46

ISRAEL

46

UNITED ARAB EMIRATES

17

OMAN

9

TURKEY

8

SAUDI ARABIA

Industry Blueprints: Cybersecurity- Redux

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INVESTMENT ACTIVITY: AFRICA, LATIN AMERICA & CARIBBEAN

SOUTH AFRICA

EGYPT

10

2

KENYA

2

MOROCCO

2

NIGERIA

2

TUNISIA

2

28

BRAZIL

12

ARGENTINA

7

CHILE

7

COLOMBIA

4

URUGUAY

*Count of Companies having HQ in Africa

*Count of Companies having HQ in Latin America and Caribbean

Industry Blueprints: Cybersecurity- Redux

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UNICORNS

Source : Wavteq Corporate Intelligence Unit

Industry Blueprints: Cybersecurity- Redux

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VC FIRMS

START-UP PROPENSITY

Industry Blueprints: Cybersecurity- Redux

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ACCELERATORS AND INCUBATORS

Industry Blueprints: Cybersecurity- Redux

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NORTH AMERICA

Dreamit Ventures HAX

Y combinator Alchemist Accelerator Founder Fuel

EUROPE

Start-up Wise Guys StartupYard

imec.istart, Entrepreneur First Startupbootcamp

Axel Springer Plug and Play Accelerator WorldStartup

Huckletree Founders Factory

AFRICA

Flat6Labs

AUC Venture Lab Startupbootcamp Aurik Business

ASIA PACIFIC

Brinc Chinaccelerator AppWorks

1337 Ventures India Accelerator BlueChilli Group Startmate CyRise

River City Labs

Region

Accelerators

MERGERS AND ACQUISITIONS

Industry Blueprints: Cybersecurity- Redux

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More than 430 cybersecurity-related mergers and acquisitions were announced in 2021, according to a study conducted by Security Week.

An analysis of the cybersecurity M&A deals of 2021 shows that of the 435 deals made public by companies, a majority involved organizations in North America and Europe.

Symphony Technology Group

Permira

Thoma Bravo

Okta

Check Point

Absolute Software

CWSI

McAfee Enterprise and FireEye

Mimecast Limited

Proof point

Auth0

Avanan

Netmotion Software

AVR International

ACQUISITION PRICE

$1.2 billion

$5.8 billion

$12.3 billion

$6.5 billion

$250 million

USD$340 million

$6.3 million

COMPANY

ACQUIRED COMPANY

ACQUISITION DATE

June 2021

May 2022

July 2021,

May 2021

Aug 2021

June 2021

May 2021

DESCRIPTION

The combination of the two firms is said to create a cybersecurity platform majorly having over 40,000 customers, a workforce of nearly 5,000, and close to $2bn in revenue.

Partnering with the Mimecast team will help to accelerate the product roadmap and expand the go-to-market organization to drive further growth.

Will help the company in developing products and tools that play an important role in preventing, defending and responding to today’s threats existing in the threat landscape.

Auth0 is focused on the $25 billion customers’ identity market, while Okta’s main end market is workforce identification, worth about $30 billion. The acquisition is synergetic as the companies have a shared vision of providing safe-use technology, shaping the future of identity on the internet.

With the email threat landscape becoming wider every year, the integrated Check Point Software and Avanan offering will deliver best-of-breed cloud e-mail malware protection and expand security to SaaS collaboration suites

By adding NetMotion, Absolute believes it will offer a competitively advantaged SASE platform that can maximize security and productivity. Absolute intends to leverage this diverse channel network to drive sales and growth.

The acquisition builds on CWSI’s strong & growing existing UK business. The partnership Supports CWSI’s buy and build strategy to create a leading pan-European modern security business.

WAVTEQ INSTITUTE

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REFERENCES

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www.forbes.com www.crunchbase.com www.mckinsey.com www.pwc.in www.cbinsights.com www.ey.com

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All secondary research has been conducted by Wavteq Business Intelligence Unit.