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CYBERSECURITY GROWTH PATH Total IT Security Spending Yearly Growth 120 $B1101009080706050 10 %86420 65 67 73 79 86 92 99 106 114 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E cybersec-growth-mobile CYBERSECURITY GROWTH PATH Total IT Security Spending Yearly Growth 120 $B1101009080706050 10 %86420 65 67 73 79 86 92 99 106 114 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E cybersec-market-segments CYBERSECURITY MARKET SEGMENTS CAGR, 2016-20E (%) Endpoint Security Other Security Products Total Global IT Security IT Security Services Identity & Access Mgmt Network Security Security & Vulnerability Mgmt 3.3 5.8 7.5 7.9 8.6 9.3 9.5 10 % 0 cybersec-market-segments-mobile CYBERSECURITY MARKET SEGMENTS CAGR, 2016-20E (%) Endpoint SecurityOther Security ProductsTotal Global IT SecurityIT Security ServicesIdentity & Access MgmtNetwork SecuritySecurity & Vulnerability Mgmt 3.3 5.8 7.5 7.9 8.6 9.3 9.5 10 % 0 cybersec-end-markets-desktop SHARE OF SECURITY END MARKETS EXCL. SERVICES, 2016 (%) 31 19 25 13 12 Endpoint Security Network Security Sec. & Vulnerabilty Mgmt Other Security Products Identity & Access Mgmt cybersec-end-markets-mobile SHARE OF SECURITY END MARKETS EXCL. SERVICES, 2016 (%) 31 19 25 13 12 Endpoint Security Network Security Sec. & Vulnerabilty Mgmt Other Security Products Identity & Access Mgmt cybersec-volume-desktop CYBERSECURITY M&A VOLUME BY YEAR (NO. OF DEALS) Median Exit EV Since 2010 $65.0M M&A Volume 2016 $19.4B Median EV/TTM Revenue Multiples in 2016 4.9x 2012 2013 2014 2015 2016 2017 YTD 150100500 88 100 136 142 137 83* cybersec-volume-mobile CYBERSECURITY M&A VOLUMEBY YEAR (NO. OF DEALS) Median Exit EV Since 2010 $65.0M M&A Volume 2016 $19.4B Median EV/TTM Revenue Multiplesin 2016 4.9x 2012 2013 2014 2015 2016 2017 YTD 150100500 88 100 136 142 137 83* CYBERSECURITY ANNUAL GLOBAL FINANCING HISTORY 4000 3500 3000 2500 2000 1500 1000 500 0 450 400 350 300 250 200 150 100 50 0 Disclosed Funding ($M) Deals 2012 980 2013 1130 2014 2148 2015 3780 2016 3556 2017 YTD 3012 185 222 333 375 428 331 4000 3500 3000 2500 2000 1500 1000 500 0 450 400 350 300 250 200 150 100 50 0 Disclosed Funding ($M) Deals CYBERSECURITY ANNUAL GLOBAL FINANCING HISTORY 2012 980 2013 1130 2014 2148 2015 3780 2016 3556 2017 YTD 3012 185 222 375 428 331 333
  • Videos
  • Cybersecurity Report
  • Companies
  • Introduction

The Cybersecurity Investment Case

Surging cyber-attacks, cloud penetration, increased network connectivity, and the growing complexity of disruptive cyber-attacks, are all drivers supporting a growing cybersecurity need.

Industry Trends

  • Automation (inevitable) will be more widely adopted as skills shortage is exacerbated; emphasis on the efficacy of big data analytics
  • The cybersecurity industry is far from maturity, many new companies with new approaches and technologies are constantly emerging, leading to highly fragmented sectors
  • Consolidation will accelerate across highly fragmented & competitive sectors including endpoint & authentication
  • Enterprises are transforming their security strategy, moving away from prevention-only approaches to focus more on detection and response (coupled to the leveraged use of AI)

Why now?

A combination of conditions have created the perfect cyber storm and opportunity for investing:

  • Increasing geopolitical tensions & complete lack of governance & law enforcement models
  • The speed of innovation driving vulnerabilities everywhere (mobile, social, cloud, satellite, IoT, industrial, physical, & consumer)
  • Expansive vulnerabilities enable exponential growth in attacker groups & types
  • Levels of danger expand from hacktivism to crime to espionage to terrorism to warfare
  • Threats are growing in risk as new threats emerge to target information everywhere
Research
  • Research note 2019-02-07

    Verisec Q4’18: First comment

    Havan Hanna
  • Research note 2019-02-06

    Verisec: Q4'18 preview

    Havan Hanna
  • Research note 2019-01-09

    Verisec: Momentum intact

    Havan Hanna
  • Research update 2018-12-04

    Clavister: Impressive execution

    Havan Hanna
  • Research update 2018-11-25

    Verisec: Good momentum

    Havan Hanna
Community
  • 2015-06-23

    Clavister: Sannolik Mångdubblare!!!

    bjaen
  • 2015-01-26

    Nya, spännande bolag

    grinig_nr1
  • 2014-12-09

    Clavister - 500% Potential Inom 12 månader!

    klockan
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