Cybersecurity continues to be one of the hottest industries to be in, and that's not just because of ransomware and crypto hacks.
Momentum Cyber has released its Cybersecurity Almanac 2022, a comprehensive report providing strategic insights into the industry. With analysis from over 3,500 companies spread across the world, the almanac details key trends in 2021 and how they can shape the outlook for 2022.
In what was a record year for cybercrime, we also saw a record year for investments and mergers and acquisitions.
According to the almanac, in 2021, investment in cybersecurity more than doubled from the previous year. A total of $29.3 billion was invested in venture capital and private equity financing across more than 1,042 deals. Of those deals, 82 were greater than $100 million.
There were 286 strategic transactions for a total $77.5 billion, with 14 of those deals valued at over $1 billion. The almanac notes that security consulting and MSSPs lead the way in deal counts, while SecOps / IR / Threat Intel experienced 171% YoY increase, the largest of any sector.
Along with the investments and transactions, it discusses the record number of IPOs and how valuations signal the criticality of cybersecurity:
"The term 'unicorn' is no longer reserved for a select few companies in Cyber with over 30 unicorns minted in 2021 versus 6 in 2020 and valuations were at record levels. There was also a flurry of IPO activity this past year as companies went public both via traditional routes and via SPAC. Major IPOs included KnowBe4, Darktrace, SentinelOne, Riskified, and ForgeRock, totaling $2.2 billion in gross IPO proceeds. Cybersecurity stocks consistently performed in line with the S&P 500 while outperforming the NASDAQ."
Dave DeWalt, Founder and Managing Director of Momentum Cyber and NightDragon Security, shared his thoughts:
"We are entering a new age of Cybersecurity risk that is testing our defenses across every commercial and government organization. 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."
Outlook on cybersecurity in 2022
DeWalt shared what he believes to be some of the most important trends and topics as we move along in 2022. He highlights six things within the industry for people to keep their eyes on:
- Growth Continuing to Accelerate - The necessity to protect digitized businesses, consumers, and devices from malicious threat actors will propel Cybersecurity spending further in 2022.
- Sub-Sectors to Watch - Identification management, threat hunting, managed XDR, vulnerability management, and security awareness training sub-sectors are all expected to grow significantly.
- Founders Looking for Value - Founders are looking for "real value-add" from their investors and specialization with an abundance of capital in the current market.
- The Great Shift-Left in Security - DevOps teams are guaranteeing security at the earliest stages in the development lifecycle as the market focuses on developers' needs.
- Industrial Security's Importance - Enterprises of all sizes are demanding a different approach to industrial security as threats increase and key infrastructure is tested.
- Cryptocurrency and Blockchain Emergence - Cybersecurity will play an important role in cryptocurrency's mainstream adoption.
DeWalt also shared this quote in the foreword of the almanac:
"We are seeing a perfect storm of factors coming together to create
the most aggressive threat landscape in history for commercial and
government organizations around the world."
Cybersecurity challenges in 2022
Robert Herjavec, Founder and CEO of Herjavec Group, who is also one of the sharks on the popular show Shark Tank, thinks it's time for companies to assess their security posture to ensure they are ready to face whatever challenges 2022 might have in store.
What are those challenges? Herjavec discusses four topics that companies must address:
- The Rise of Ransomware - Steep increases in the frequency and sophistication of attacks that have trickle-down impacts on communities, industries, and nations continue to threaten the world.
- Cybersecurity Is Everyone's Responsibility - Defending a company from cyber threats is no longer on the IT department's shoulders alone—every person in the company must be cybersecurity savvy as they can be the weakest link or the strongest first line of defense.
- Inculcating a Culture of Security-Driven Business - Cybersecurity should be included in a company's strategy and development, and teams must have access to the resources, support, and infrastructure that allow them to prioritize cybersecurity in their everyday tasks.
- Cybersecurity Skills Gap - Labor shortage of cybersecurity professionals has been exacerbated by the pandemic and the increased speed of digital transformation, making it harder to maintain essential information security protocols.
Herjavec adds:
"You have to stay laser focused when driving a car over 200 miles
an hour, and the same approach is required when growing a business
in today's world of rapidly changing technology."
For more information and insights into where cybersecurity is headed in 2022, check out Momentum Cyber's Cybersecurity Almanac 2022.
