Newly Founded Cybersecurity Startups Raise More Than $31 million in 2020

Newly Founded Cybersecurity Startups Raise More Than $31 million in 2020

According to data presented by the Atlas VPN team, there are 78 new cybersecurity companies founded in 2020 that cumulatively have raised over $31.6 million in funding year-to-date.

Only 15% of cybersecurity startups launched in 2020 secured funding. However, three companies alone collected nearly 96% ($30.3 million) of the total amount of investments.

The startup that scored the most significant investment is Beyond. It secured a total of $21 million in February of 2020, which accounts for more than 66% of total investments into newly launched cybersecurity startups this year.

Beyond is an Israeli cybersecurity startup founded by CEO Assaf Rappaport, who is a former head of R&D at Microsoft Israel. Investors in Beyond include Sequoia Capital Israel and Cyberstars Venture Funds Ltd.

Cybersecurity Companies By Funding

A cybersecurity startup with the second biggest investment is Sevco Security, which raised over $6.7 million in May of 2020. Funds collected by Sevco Security constitute more than 21% of total investments into newly launched cybersecurity startups in 2020.

Sevco Security is a Texas-based company that provides cybersecurity services and products for cyber experts. Among Sevco Security investors is an early-stage venture capital firm 406 Ventures.

Also, in the list of top three cybersecurity startups in terms of funding is Soc.OS. It received more than $2.5 million in investments in July this year. Funding received by Soc.OS makes up 8% of total investments in this year's cybersecurity startups.

Soc.OS is a startup from London, which offers an alert correlation and triage automation tool designed to help internal security teams manage a growing number of alerts produced by threat protection and detection tools. Soc.OS investors include such early-stage venture capital firms as Speedinvest and Hoxton Ventures.

Most of this year's cybersecurity companies are from North America or particularly the United States. They make up almost 35% (27) of all the cybersecurity startups launched in 2020.

The United States is followed by Europe, with nearly a quarter (19) cybersecurity startups coming from the region. Regardless of Brexit, nearly 37% (7) of cybersecurity startups founded in Europe this year are based in the UK.

Other countries where cybersecurity startups come from include Israel (5), Singapore (3), India (2), Brazil (1), Turkey (1), and Australia (1). A total of 24% (19) of startups have not revealed their headquarters.

A Number of New Cybersecurity Startups is Shrinking Each Year

While the amount of cyber incidents is increasing and cyberattacks are becoming more sophisticated, the number of new cybersecurity startups is declining each year.

Historical data shows that in 2015 there were 490 cybersecurity companies launched. Together the startups raised over $3.1 billion in investments.

The year of 2016 saw a slightly smaller number of new cybersecurity companies. The launch of new startups in the cybersecurity field decreased by 0.8%, with 486 startups launched that year. The total amount of funding allocated to those startups, however, dropped in half, from $3.1 billion to $1.6 billion.

In 2017 the number of new cybersecurity startups plummeted again by 0.8%. There were 482 cybersecurity companies founded that year, which raised more than $1.3 billion in total — 17% less than in 2016.

The number of new cybersecurity startups dropped by more than a fifth in 2018 compared to the year before. A total of 382 cybersecurity companies were launched that year, which collected over $847 million in investments. The amount of funds invested in the cybersecurity startups also dropped by 35% compared to 2017.

Last year saw a 46% decrease in the launch of new cybersecurity startups. There were 207 these types of companies founded. Together they raised close to $229.5 million in investments — 73% less than the year before. This year's cybersecurity market has welcomed 78 newcomers — the number has shrunk by 62% compared to last year.

Featured

  • Bringing it Together

    Public safety communications have long been used to help first responders save lives and to help keep first responders safe, improve response time, and enhance interagency coordination. These communication solutions may include mobile (5G), radio telecommunication and mass notification systems. Read Now

  • Exploring the Future of Video

    AI innovation is rapidly transforming video security. Edge-based AI centered on object detection excels at detecting people and vehicles to alert to threats like brandished guns or perimeter breaches. However, the onus is on the user to gather more details to fully understand the situation. Read Now

  • Allegion, Comfort Technologies Implement Mobile Credentials at the Artisan Apartment Homes in Florida

    Artisan Apartment Homes, a luxury apartment complex in Dunedin, Florida, recently transitioned from mechanical keys to electronic locks and centralized system software with support from Allegion US, a leading provider of security solutions, technology and services, and Florida-based Comfort Technologies, which specializes in deploying multifamily access control, IoT devices and software management solutions. Read Now

  • Mall of America Deploys AI-Powered Analytics to Enhance Parking Intelligence

    Mall of America®, the largest shopping and entertainment complex in North America, announced an expansion of its ongoing partnership with Axis Communications to deploy cutting-edge car-counting video analytics across more than a dozen locations. With this expansion, Mall of America (MOA) has boosted operational efficiency, improved safety and security, and enabled more informed decision-making around employee scheduling and streamlining transportation for large events. Read Now

  • Security Industry Association Launches New “askSIA” AI Tool

    The Security Industry Association (SIA) has unveiled a brand-new SIA member benefit – askSIA, a conversational AI agent designed to help users get the most out of their SIA membership, easily access SIA resources and find the latest information on SIA’s training and courses, reports and publications, events, certification offerings and more. SIA members can easily find askSIA by visiting the SIA homepage or looking for the askSIA icon in the top left of webpages. Read Now

    • Industry Events

New Products

  • QCS7230 System-on-Chip (SoC)

    QCS7230 System-on-Chip (SoC)

    The latest Qualcomm® Vision Intelligence Platform offers next-generation smart camera IoT solutions to improve safety and security across enterprises, cities and spaces. The Vision Intelligence Platform was expanded in March 2022 with the introduction of the QCS7230 System-on-Chip (SoC), which delivers superior artificial intelligence (AI) inferencing at the edge.

  • Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

    Connect ONE®

    Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.