Product-led growth in cybersecurity: past, present & future

Thoughts about what’s required for product-led growth and if cybersecurity startups can keep up

Cybersecurity is a growing market

The ever-growing number and increasing complexity of cyber threats, ranging from phishing and malware to ransomware and zero-day exploits, make cybersecurity a lucrative field for startup growth.

According to the Identity Theft Resource Center’s 2021 Data Breach Report, there were 1,862 data breaches in 2021, surpassing both 2020’s total of 1,108 and the previous all-time record of 1,506 set in 2017. An independent global survey of 1,100 cybersecurity professionals found that in 2021, ransomware attacks hit 80% of the organizations surveyed.

This increase in the number of security incidents corresponds with greater investment in cybersecurity startups. 2021 has been a record-breaking year for cybersecurity startups that raised $29.5 billion in venture capital last year. This is more than double compared to the amount raised in 2020 ($12 billion), and more than 2019 and 2018 combined. This is big.

More than 30 startups achieved $1 billion-plus valuations, including the likes of Wiz, Noname Security and LaceWork, compared to just six startups the previous year.

Likewise, total M&A volume soared to over three times what it was in 2020, with $77.5 billion in deals in 2021…