Cybersecurity: The next frontier for investors?

Understanding the corporate and investment landscape

Estimated at ~US$170bn in global spend today,  enterprise cybersecurity is predicted to grow at a CAGR of over 8% between now and 2025.^[1] Yet, many companies and consumers still lack appropriate assessment of their online exposure and have incomplete awareness of the associated risks. However, with increased knowledge, the demand for cybersecurity solutions is growing and along with it, the hypothesis that investment into cybersecurity assets is fundamental to successful operating models. Within this report we track valuations trends, leveraging S&P Global Research Signals and Bitsight’s^[2] cybersecurity research to explore this hypothesis further.

Leon Sinclair and Przemek Bozek spoke with industry leaders and investors, including Akamai, Clango, Full Frame Technology and Ibex Investors on the uptake of cybersecurity by enterprises and whether cybersecurity should be considered a promising long term investment.

This thought leadership paper explores:

• Which businesses and sectors are best prepared for potential attacks?
• Will the importance of investing into trusted technologies increase?
• How did cybersecurity adoption change during the COVID-19 pandemic and associated shift to remote working? 
• What is the investment process for Venture Capital and Private Equity investors?
• How do investors structure early stage investment?
• What is the outlook for cybersecurity investment?

^[1]Source: Forbes: https://www.forbes.com/sites/louiscolumbus/2020/04/05/2020-roundup-of-cybersecurity-forecasts-and-market-estimates/#5abbb1de381d
^[2]Bitsight are a cybersecurity ratings company which provide analysis on cyber readiness and rank companies accordingly.