Up and At ‘Em: Israeli Cybersecurity Investment Hits High Mark in 2016
Cybersecurity is a hot topic both in the U.S. and abroad. With data breaches on the rise and skilled security professionals in short supply, the market seems ripe for startup developments.
But as noted by CB Insights, slowing investment numbers across the globe suggested that 2016 had cooled compared to a red hot 2015. As it turns out, that’s only part of the story. Along with the U.S., Israeli cybersecurity hit a new high mark in 2016.
Israeli Cybersecurity Market Hot in 2016
According to TechCrunch, the Israeli security market is taking on all comers, with 83 newly founded cybersecurity startups through 2016 compared to 81 in 2015. Also of note, there were 72 investment rounds worth $689 million in 2016, compared to 62 rounds at $560 million during the previous year. The Israeli cybersecurity space also underwent a changing of the guard, as industry newcomers, not grizzled security veterans, dominated the market in 2016.
Some investment categories remained consistent across 2015 and 2016, such as mobile security, risk management and SCADA security. However, some emerging areas of risk, such as the Internet of Things (IoT), drone security and cyber insurance, also attracted capital in 2016. While total worldwide investment was down last year, the U.S. and several other markets remained strong, bolstered in part by increased cybersecurity focus during the recent election.
According to ITProPortal, meanwhile, France set aside 1 billion euros to develop a new national security strategy, and Australia announced plans to ramp up government cyber spending over the next few years. And where governments invest, so do private equity firms. In the United Arab Emirates, for example, the cybersecurity market is predicted to reach $10 billion in just two years, up from only half that much in 2014.
Investing in Cybersecurity From the Ground Up
Of course, big Israeli cybersecurity investment, even mirrored across other countries, can’t magically create enough trained employees to take on new security roles. Thankfully, there is some movement in this area as well.
The Denver Post reported that technology boot camp SecureSet Academy recently secured $4 million in series A funding, expanded into a new city and announced intentions to grow even more in 2017. This is the other, equally necessary side of security investment: Without trained staff to implement and manage security tools, even cutting-edge technologies won’t safeguard critical data.
The cybersecurity market is cooling globally, but a number of hot spots are driving the development of young talent and ambitious startups. Yet investment alone won’t be enough to safeguard corporate networks. Together, training and technology are the ultimate one-two punch.