Investing in modern cybersecurity: a recap

We recently published a five-article series on Cybersecurity. We also created an interactive tool for investors. Here's a quick overview.

Bottom line

Cybersecurity is hitting the headlines, but its inner workings remain somewhat obscure to the average investor. Our five-part series is meant to help navigate through the meanders of this industry and highlight investment opportunities. We topped it all with an interactive dynamic value chain diagram that can be used to both overview or deep-dive into specific segments of this fascinating industry. 

What happened

Cybersecurity has become a trendy topic these past few years.

Although many understand the importance of cybersecurity for modern-day life, the technologies involved often remain veiled behind the curtain of numerous acronyms and technical jargon. As a result, the sector’s panorama, and the corresponding investment opportunities, generally remain somewhat blurry.

In a five-part series of specific articles, we tried our best to demystify the world of cybersecurity, hoping to get readers acquainted with the building blocks of the digital world, and highlighted the corresponding investment opportunities.

Impact on our Investment Case

Numerous megatrends drive the industry: global connectivity, the Internet of Things, growing attack surface, transition to the cloud, and astronomical costs of cyberattacks, among others. The ecosystem, composed of cloud, application, network, data, and endpoint security, is set to capture a massive $310bn TAM by 2026 with an average 5Y CAGR of 15%.

After introducing the modern cybersecurity framework in the first article, we successively dived into all sectors that make this industry:

  • Application security, a $18bn market growing at 22%, driven by ongoing digitization of everything around us that will run on code.
  • Endpoint security, a $19bn market growing at 8%, protecting over 200bn connected devices and driven by a transition to innovative and AI-powered XDR platforms.
  • Network security, a $58bn market growing at 14%, driven by data and internet traffic explosion, as well as adoption of the modern Zero-trust framework
  • Cloud, a $52bn market growing at 17%, driven by cloudification, initially sparked by COVID-19 and the sheer amount of highly vulnerable and sensitive data stored online.
  • Data, a $5bn market growing at 21%, driven by the transition from using bytes and gigabytes to tera, yotta, and zetta bytes, i.e., data explosion.
  • Threat Intelligence and Services, a massive $160bn market, driven by the shortage of IT specialists, cybersecurity complexity, and the need to educate users on proper digital hygiene.

Our Takeaway

To help our clients, we created an interactive dynamic value chain diagram available on our website. It encompasses the entire modern cybersecurity universe that we rely upon when constructing our investment universes and portfolios.

By clicking on the sectors, arrows, and technologies, you may delve into the industry and learn about the latest state of the cybersecurity universe, market size, and growth. You may also discover the players which we think are the leaders of their segments and which we believe are best bound to benefit from the numerous catalysts lining up in the near future.



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