• Mr. ByteChek

Cybersecurity companies raise over $21B in 2021

Updated: Mar 22

In 2021, cybersecurity companies raised over $21B which shattered 2020’s record of $8.9 billion raised. The large amount of investment in the cybersecurity industry is exciting because it means there is an opportunity for startups to create innovative solutions to modern threats. This investment uptick does not happen without Chief Information Security Officers (CISOs) being more open to working with startups building innovative solutions to solve complex problems.

Bessemer Venture Partners (BVP) identified three macro trends they think will impact cyber investing in 2022:

  • Security spend will move to the forefront for businesses in all sectors

  • The institutionalization of ransomware

  • The Great Consolidation is afoot

An increase in security spending is good news for the cybersecurity industry. When you have to fight for every dollar in your budget and make difficult decisions on how to invest in safeguarding your personal information, it can be difficult to develop a robust cybersecurity strategy. CISOs have the opportunity to work with startups that are still dominated by archaic technologies that are impossible to innovate and change with the evolving threat landscape.

When CISOs are using this budget they are looking for solutions that can help them consolidate the tools their security team needs to effectively do their job. BVP says, “as cybersecurity spend increases, CISOs will prune their long list of current security vendors and will pay a premium for those that help reduce alert fatigue and prioritize the most pressing issues.” CISOs are looking for security providers that offer single solutions to solve multiple problems and they are willing to invest in the consolidation of their security providers.

All cybersecurity professionals should see these investment trends as a step in the right direction for the industry. There are far too many cyber departments that are spending money on multiple solutions to solve cyber problems. These additional security providers present additional threat vectors, increased vendor due diligence, and the additional risk of turnover. CISOs are looking for ways to reduce the tools their teams use to make their lives easier, one less vendor to manage makes for a happy cyber professional.

The cybersecurity compliance industry is an example of a sector primed for disruption. The leaders in cybersecurity compliance are professional services firms that partner with software companies to deliver a disjointed and complex solution to the compliance challenges companies face.

We’ve built ByteChek to disrupt the cybersecurity compliance sector and eliminate multiple providers to earn SOC 2, HIPAA, and ISO 27001 compliance certifications. ByteChek is the only all-in-one solution in the cybersecurity compliance industry positioned to help CISOs invest in a compliance solution that helps automate every aspect of the cybersecurity audit process, from readiness to report.

According to BVP, “cybersecurity is a massive market with over $150 billion in annual spend and has consistently accounted for 6% of total IT spend.”

It is an exciting time to be building a cybersecurity company in a market that is growing this fast and is this large. We've built ByteChek because we knew companies needed a single solution to solve their compliance problems. If you are a cyber security practitioner and agree that the cybersecurity compliance industry is ready for all-in-one solutions, please reach out.