Cyber security startups brought in a "record-shattering" $29.5 billion in venture capital spending globally across 2021, according to new data.
The investment total amounts to more than double the number reported in 2020, which was just $12 billion, as reported by financial advisory firm Momentum Cyber.
RELATED RESOURCE
The best defence against ransomware
How ransomware is evolving and how to defend against it
The firm said the increase was largely driven by a rise in cyber threats, with notable data breaches and ransomware attacks spread throughout the year. Investors poured a record amount of capital into 1,042 transactions as a result, with 82 of these being greater than $100 million.
A record number of security startups also reached unicorn status, with more than 30 minted by the end of 2021, including Wiz and LaceWork. That's compared to just six startups managing to achieve the same the year before.
IPOs were also up for the year, with companies like Darktrace and SentinelOne helping to raise $2.2 billion on the stock market. Cyber security stocks consistently performed well and even outperformed the NASDAQ, according to Momentum.
"We are entering a new age of cyber security risk that is testing our defences across every commercial and government organisation," said Dave DeWalt, founder and managing director, Momentum Cyber. "It is the responsibility of defenders like us to keep investing in and nurturing innovation to combat this existential threat and ensure a safe and secure future for all."
Separately, the cyber security industry also saw record amounts of money generated via mergers and acquisitions. The 286 transactions in 2021 added up to $77.5 billion, over three times higher than in 2020. The number was inflated by billion-dollar acquisitions, such as the $14.1 billion deal for McAfee.
The cyber risk of blockchain and cryptocurrencies
2021 will more likely be remembered as a year littered with data breaches and ransomware. There were notable attacks on core infrastructure, such as the Colonial Pipeline and the Irish Health System. This was in addition to large-scale supply chain attacks, such as SolarWinds and Microsoft Exchange.
Looking to 2022, Momentum's report suggests investors will focus on cyber security's "emerging relationship" with cryptocurrency and blockchain.
"While it remains to be seen how these sectors will evolve over the coming year, investors will certainly be paying close attention," the report notes.
-
Prolific ransomware operator added to Europe’s Most Wanted list as US dangles $10 million rewardNews The US Department of Justice is offering a reward of up to $10 million for information leading to the arrest of Volodymyr Viktorovych Tymoshchuk, an alleged ransomware criminal.
-
Jaguar Land Rover “did the right thing” shutting down systems to thwart cyber attackNews The attack on Jaguar Land Rover highlights the growing attractiveness of the automotive sector
-
Ransomware attack on IT supplier disrupts hundreds of Swedish municipalitiesNews The attack on IT systems supplier Miljödata has impacted public sector services across the country
-
A notorious hacker group is ramping up cloud-based ransomware attacksNews The Storm-0501 threat group is refining its tactics, according to Microsoft, shifting away from traditional endpoint-based attacks and toward cloud-based ransomware.
-
Security researchers have just identified what could be the first ‘AI-powered’ ransomware strain – and it uses OpenAI’s gpt-oss-20b modelNews Using OpenAI's gpt-oss:20b model, ‘PromptLock’ generates malicious Lua scripts via the Ollama API.
-
Data I/O shuts down systems in wake of ransomware attack
News Regulatory filings by Data I/O suggest the costs of dealing with the attack could be significant
-
Average ransom payment doubles in a single quarterNews Targeted social engineering and data exfiltration have become the biggest tactics as three major ransomware groups dominate
-
BlackSuit ransomware gang taken down in latest law enforcement sting – but members have already formed a new groupNews The notorious gang has seen its servers taken down and bitcoin seized, but may have morphed into a new group called Chaos
