Investing in Cybersecurity Startups: Trends and Opportunities

Here is why you should invest in cybersecurity startups in 2023

Significant developments in IT over the past few years have resulted in a corresponding rise in cybersecurity threats. The good news is that cybersecurity businesses are still coming up with novel ways to mitigate those risks, even in the face of a downturn in venture capital investment and an economic recession.

These startups are coming up with innovative ways to combat a broad range of cyber threats, from advanced attack groups to post-quantum encryption threats, and from critical application vulnerabilities to both in-cloud and on-premises networks. They are doing this by developing cutting-edge technologies like artificial intelligence and sophisticated encryption techniques.

APIIRO: Four years old, Apiiro is a Tel Aviv-based firm that provides enterprises with application security from design to production through its Cloud Application Security Platform (CASP). To give a thorough understanding of application security threats, the platform integrates the capabilities of Application Security Posture Management (ASPM), Cloud Security Posture Management (CSPM), and Application Orchestration and Correlation (ASOC).

The platform from Apiiro models application security risks using a graph-based technique, which enables it to comprehend the connections between various security threats and rank remediation activities in order of importance. Moreover, it offers context-aware risk rating, which considers an application's particular setup as well as the environment in which it operates.

SAVIYNT: Across cloud and on-premises platforms, Saviynt provides a convergent identity platform for managing user, device, and application identities. The need for identity and access management solutions is growing, and Saviynt's expansion is a result of businesses looking for methods to federate identity management across platforms and locations.

BISHOP FOX: Bishop Fox provides research, training, and offensive security services from its Washington, D.C. location. Vincent Liu, a former Microsoft security engineer and penetration tester, founded the business in 2005. It offers training programs, security assessments, red teaming, penetration testing, and research on new threats.

Although Bishop Fox is among the more established firms on this list, a recent increase in financing indicates that venture capitalists see a lot of potential in the business. The business is actively employing additional security experts, growing into new markets, and creating new goods and services. All things considered, Bishop Fox is in a strong position to develop and prosper in the cybersecurity sector.

THOROPASS: Based in New York City, Thoropass, originally known as Laika, is a budding compliance technology firm. The company's expertise lies in offering comprehensive compliance solutions, optimizing workflows, and mitigating risks to assist enterprises in navigating the intricate regulatory environment. To better represent its growing capabilities and changing goal, Thoropass renamed from Laika. Through the company's platform, businesses may identify and evaluate their compliance requirements, create and implement compliance programs, automate compliance chores, and keep an eye on their compliance posture.

Additionally, Thoropass offers expert advice, gap analyses, and audit preparation as professional services. The cloud-based platform is easy to use and appropriate for all sizes of enterprises with varying levels of technological proficiency. The platform from Thoropass is simple to include into already-existing security ecosystems since it interfaces with other well-known security and compliance technologies.

NetSPI: NetSPI, which was founded in 2001, is a longer established firm than others in this article; nonetheless, it gained new attention last year after receiving $410 million in investment. Through a combination of services and solutions, NetSPI provides penetration testing, attack surface management, and breach and attack simulation. Nine out of the ten major banks in the United States, four of the top cloud providers, and four of the top five healthcare corporations are among NetSPI's clientele.

TRACEABLE AI: An API security platform is provided by Traceable AI, which can identify APIs, assess the risk posture of the API, thwart API assaults, and give deep analytics for forensic investigation and threat hunting. Traceable utilizes machine learning models and distributed tracing for API security across the development lifecycle, with an API Data Lake at its foundation. Traceable provides insight into user and API behaviors via visual representations of API pathways, enabling the identification of abnormalities and prevention of API assaults.