Cybersecurity products are in incredible demand because running a business is riskier than ever. Hackers and cybercriminals are targeting companies of all sizes, so every organization needs a strategy for keeping its valuable data safe.
The focus on cybersecurity is opening up new opportunities for security as a service startups and savvy investors to turn significant profits. This guide will examine trends in the security as a service industry in 2022 and analyze some startups that are already breaking out.
What Is Security as a Service?
Security as a service is the term given to outsourced cybersecurity technology delivered by a third party via the cloud. It’s a method of protecting company assets without requiring a full-time, on-site team.
Companies can save money while ensuring they have the latest cybersecurity technology at their disposal when outsourcing this job. It also allows immediate upgrades and scaling as the company requires them, providing a seamless transition.
Trends in the Security as a Service Industry
The security as a service industry is growing, and new trends arise regularly. These changes could define what startups and investors focus on in the coming years. Some trends to watch for include:
Greater Cybersecurity Spends
The cybersecurity industry will expand significantly in the coming years, with projections suggesting the global market could grow from $139.77 billion in 2021 to $376.32 billion in 2029. Privacy regulations requiring companies to protect consumer data or face significant fines could be partially responsible for this growth, as businesses can’t take the chance of criminals stealing their customers’ information. Historically offline organizations are bringing their infrastructure online, too, increasing their need for cybersecurity solutions.
Focus on Ransomware
About 30% of all cyberattacks in the United States in 2020 involved ransomware. These attacks essentially lock organizations from their files and demand a ransom payment to restore access to this data. No business can survive a ransomware attack that blocks its supply chain or data center, so taking the necessary precautions to prevent these issues is a priority.
All-in-One Security Solutions
Many companies are moving away from on-site cybersecurity to focus on security as a service providers. There are hundreds of available options, so businesses want all-in-one vendors offering the most complete protection possible. Cybersecurity startups looking to appeal to mainstream businesses will have to offer easy-to-use solutions that provide full and evolving protection to fight through the noise as the industry grows.
Following along with the latest trends in cybersecurity makes it easier for startups to capitalize on where the industry is heading. This information also gives investors something to watch to gain insight into which startups could be heading in the right direction.
7 Security as a Service Startups to Watch in 2022
A few security as a service startups could take significant steps forward in 2022. These firms are worth watching because they provide a blueprint for other startups and potential investors. Some startups pursuing significant growth include:
Wiz offers a unique security product with a vulnerability scanner that allows organizations to address their most significant risks in real-time. Investors took notice, too, as the platform had raised a total of $600 million through its Series C funding round and is valued at over $1 billion.
2. Open Raven
Open Raven has a commitment to compliance and data security visibility, protecting cloud-based storage resources from damage and unauthorized access. The startup raised $19.1 million in Series A funding, so it’s well on its way as the industry grows.
Confluera raised $29 million in Series A funding and focuses on protecting the remote workforce. This solution tracks network traffic and integrates real-time threat detection, automatically responding to vulnerabilities as they arise.
BlueBracket looks for source code issues by doing deep scans of organizational codebases and enhancing the visibility of code mistakes and lingering tokens. It also provides a risk score to measure these vulnerabilities, making it an easy security application to use. The company has received $18.5 million in Series A funding to date.
5. Apiiro Security
Apiiro Security had an excellent Series A funding round, raising $35 million for its code risk platform. Much of this success resulted from the organization branding itself as the world’s first code risk platform and its ability to identify risk across cloud and design segments. The platform can also connect across hybrid infrastructure.
6. Cado Security
A highly successful $11.5 million Series A funding round has put Cado Security on the map. This startup made a name for itself by creating the first-ever cloud-native forensics and response platform, allowing security teams to respond to cloud-based threats immediately. This platform offers investigative tools that many other solutions in this space don’t have.
Cycode has raised $81 million through its Series B funding round, putting the startup on a path to success. This company fills a vulnerability gap in supply chain software security, providing solutions to issues like code leakage and code tempering. The result is a safer business infrastructure for companies of all sizes.
Each of these startups addresses a particular issue or set of issues within the cybersecurity space. Cybercriminals will look for new ways to exploit businesses worldwide, so there will be plenty of opportunities for startups to join their ranks in the coming years.
Developing a Cybersecurity Startup
Security as a service isn’t going anywhere, as the cybersecurity industry as a whole is poised for massive growth in the coming years. Startups that identify a security weakness and provide a solution can position themselves to take advantage of this industry evolution and set themselves up for long-term success. Finding knowledgeable investors is the next step to help drive their growth.
Option3 is a cybersecurity investment advisor that presents industry-savvy investors with attractive opportunities. We understand the current state of cybersecurity and can provide insight into what organizations all over the world are looking for from their security as a service providers. Contact Option3 for tips on cybersecurity investing in 2022.