As cyberattacks proliferated this year, the most recent ones around the world have taken down operations at medical facilities, grocery chains, and gasoline pipelines plus potentially put some intelligence agencies in compromising situations. But they have been a bonanza for cybersecurity start-ups. These companies that sell security products and services have a bigger market and mission than ever before. So far, breaches have fueled concerns among companies and governments, leading to increased spending on these products. Investors have poured more than $12.2 billion into start-ups that ensure their cloud security, identity verification and privacy protection.
The money is flooding into those that are getting to grips with hackers in new ways. Traditionally, security systems at companies relied on the idea of securing a perimeter such as firewalls to protect access to their corporate network. But a shift to cloud computing over the past several years has rendered the perimeter and dependency on corporate networks obsolete. The pandemic provided momentum when people shifted to remote work, which required securing remote access systems.
Other internet security businesses have also benefited. One in particular that makes sure users are who they say they are when they join a platform, collected $394 million last month.
In conclusion, with security start-ups going public or being acquired for large sums, and cybersecurity threats mounting, the financial gain is likely to continue. When something like this hits the average person’s mind, people realize that this is definitely here to stay.