Cybersecurity investing bolted to an all-time record in 2018, as venture capitalists dispersed $3.76 billion to startups in the United States.
The year’s total not just leapfrogged the previous record of $3.1 billion in 2015, but did so by a substantial margin: climbing 20 percent, according to data from Thomson Reuters.
The funding kept security investing on a five-year course of heightened activity, with corporate and government security woes pushing technology managers to spend more on new products and services. Over the period, annual capital allocated to cybersecurity startups in the U.S. more than tripled, while deals funded rose by about a third.
Investing in 2018 was supported by a strong fourth quarter, when $1 billion went to young companies in 49 deals, according to the data. The quarter saw $100 million or larger deals with Tanium, Netskope and Venafi.
For the year, 207 deals took place, an annual total that has stayed relatively unchanged for the past five years. California was the state with the most deals by far, followed by New York, Massachusetts, Virginia and Maryland.
Seven deals in 2018 reached $100 million or more (see table below). Along with Tanium and Netskope, Anchorfree and Crowdstrike brought in substantial capital.
Top 10 cybersecurity deals (2018)
|Company||Founded||Location||Amount Raised ($M)||Backers|
|Tanium Inc||2007||Emeryville, Calif.||$376.00||Wellington Management Company|
|Anchorfree Inc||2005||Redwood City, Calif.||$295.00||Accel Partners, Signalfire, 8VC, Green Bay Advisors|
|Crowdstrike Inc||2011||Irvine, Calif.||$200.00||Accel Partners, General Atlantic, IVP, March Capital Partners, CapitalG Management Company|
|Netskope Inc||2012||Santa Clara, Calif.||$168.70||Accel Partners, Lightspeed Venture Partners, Sapphire Ventures, Social Capital, Geodesic Capital, Base Partners Consultoria de Investimentos e Negocios Ltda|
|Bitsight Technologies Inc||2011||Boston||$106.60||Flybridge Capital Partners, GGV Capital, Menlo Ventures, Singtel Ventures (Singapore) Pte Ltd, Warburg Pincus|
|Venafi Inc||2004||Salt Lake City, Utah||$100.00||Questmark Partners, Technology Crossover Ventures, NextEquity Partners|
|Signifyd Inc||2011||San Jose, Calif.||$100.00||Allegis Capital, American Express Ltd, Bain Capital, IA Ventures, Menlo Ventures, Resolute.VC, Premji Invest|
|Pindrop Security Inc||2011||Atlanta||$90.00||Andreessen Horowitz, Citi Ventures Inc, Cross Creek Capital, EDB Investments Pte Ltd, Goldman Sachs & Co, GV, IVP, Vitruvian Partners, CapitalG Management Company, Allegion Ventures|
|IronNet Cybersecurity Inc||2014||Fulton, Md.||$78.00||Kleiner Perkins Caufield & Byers, Silicon Valley Bancventures, C5 Capital Ltd, ForgePoint Capital|
|Draios, Inc. (Sysdig)||2013||San Francisco||$68.50||Accel Partners,Bain Capital Venture Partners, Insight Venture Partners|
Source: Thomson Reuters. Data is for U.S.-based deals only.