An Introduction to Computer Security Startups
By Jillian Haber, Michigan PEVC Analyst
Many recent startups have been focused on computer security. This is because the risk of a data breach has continued to grow over the years. Now, companies have more to lose because they store more personal information online. The cost of a data breach is often astronomical for companies which is why more companies are entering the security market. For small businesses, the average cost of repairing a data breach is $690,000, while for medium market companies, the average cost is over $1 million. These costs pose a huge financial burden for companies which is why they are willing to spend a lot of money to prevent them. This has become additionally expensive for some countries because the European Union has implemented fines up to 4% of annual revenue for data breaches.
This is why computer security companies have been able to step in and create programs to protect companies from outside risks. These programs take slightly different approaches to protect consumers including identifying sensitive data, analyzing possible problems, and fixing any possible soft spots. Three recent startups that are focused on computer security include BigID, Kolide, and Snyk.
BigID
BigID assists companies in identifying their most sensitive data. It is currently valued at $26.06 million. This startup has raised $46.16 million since it was founded in 2015. BigID is unique because they have different types of protection for different clients. Conversely, most of the computer security companies just offer one product that any consumer can use. By personalizing their service, they are able to attract consumers of all types. Their clients range from individuals to large companies.
Kolide
Kolide analyzes a company’s computers to find possible problems and then fixes these problems. Kolide is currently valued at $32 million. Since it was founded in 2016, it has raised $9.6 million. Kolide allows users to track, monitor and engage with all of their software from one screen. This makes it very easy to keep track of everything and maintain security. Kolide has a program called Kolide Cloud that monitors devices and identifies their potential vulnerabilities. One way that Kolide differentiates themselves from the competition is their efficiency. Once purchasing your package, Kolide Cloud can provide an insight report in less than two minutes.
Snyk
Snyk continuously monitors software for possible soft spots and fixes them. As of right now, Snyk is valued at $100 million. Snyk has raised $32.04 million since it was founded in 2015. This program goes through software by taking advantage of known vulnerabilities. By doing this, many common vulnerabilities are exposed. Snyk also takes the next step to continuously monitor for any additional security threats. Snyk has already successfully monitored the security of many large companies, including Google and Microsoft.
In the future, it is likely that we will see an increase in computer security companies. As technology becomes more and more advanced, companies need to do more to protect their data. Consequently, there will continue to be a high demand for computer security companies.
