Unmasking The Cybersecurity Challenge
Navigating AI, Tech Giants, And Global Insights In The Digital Era
Recently, cyberattacks have grown more complex and sophisticated, becoming increasingly challenging and timeconsuming for organizations.
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The Rising Cost of Cyber Insecurity and the Shift in Global Investment Trends
According to IBM, it takes a company 197 days to discover the breach and up to 69 days to contain it. Everything from embezzlement to data manipulation and destruction is up by 600% since the pandemic. This will cost companies worldwide an estimated US$10.5 trillion annually by 2025, up US$3 trillion in 2015. According to Accenture’s cost of cybercrime study, 43% of cyberattacks are aimed at small businesses, but only 14% are prepared to defend themselves. It is essential to assess your position against cyberattacks. Cybersecurity hygiene involves proactively supporting the best risk management practices to protect an organization from debilitating cyberattacks. Hence, the importance of investing in cybersecurity – a market which is anticipated to reach US$500.70 billion by 2030.
In the first half of 2023, or H1’23, the big tech giants drove the most discernable activity in the cybersecurity sector. This comes with Microsoft’s launch of Security Copilot and Google’s announcement of its Security AI Workbench. Strong acceleration in interest and funding in this space is only expected to hasten heading into H2’23. According to a Statista Market Report, the cybersecurity market shows an annual growth rate of 9.63% from 2023 to 2028, resulting in a market volume of US$256.50 billion by 2028. Moreover, as stated by Anton Ruddenklau, the global leader of Fintech in KPMG Singapore, corporate ventures will embrace startups that enable them to operate more seamlessly and efficiently - cybersecurity aids in operating more seamlessly and efficiently allowing organizations to minimize the impact and severity of cyberattacks.
The global YOY funding in cybersecurity was solid in H1’23 – on pace to surpass 2022 totals. Nevertheless, the number of deals in the cybersecurity space was lower in H1’23 compared to H2’22. This reflects the desire of Private Equity and Venture Capital investors to select a smaller number of more certain bets. Looking at the equity capital markets of H1’23, we observe high interest rates that fundamentally challenge existing business models aggravated by other macroeconomic challenges, geopolitical tensions, and depressed valuations. Further, uncertainty is expected to be the status quo in the near term – although the long-term outlook for the transformation of financial services remains very positive.
Investments in Cybersecurity
Below are some companies to look at for venture capital enthusiasts interested in investments in cybersecurity:
Darktrace: AI-driven cybersecurity pioneer, raised US$75 million in funding rounds. Their technology enhances security while helping companies optimize their operations.
ChainSafe Systems: a blockchain and cybersecurity startup, received US$15 million investments. They’re at the forefront of building secure and sustainable blockchain ecosystems.
Nozomi Networks: a leader in industrial cybersecurity, raised US$30 million to further its mission of securing critical infrastructure.
CyberArk: a privileged access management leader, recently secured US$50 million in funding to further its mission of protecting organizations from cyber threats. Their focus on data security and privacy is pivotal in safeguarding sensitive information.
Final words
To conclude, everyone needs to automate. It’s vital to understand that if companies can’t find the indicators of compromise within their organization more quickly, they’ll need to deal with the certainty of attackers finding more accessible and faster ways into their infrastructure – nothing is safe, especially in today’s cloud. This drives interest in the cybersecurity segment for organizations looking to understand better and manage cybersecurity risks.