Investment in cyber risk platforms has risen in recent years and is expected to continue. Cyber risk platform solutions are gaining traction as organizations across industries look to increase their security posture and secure their digital assets and data more effectively. Additionally, as companies move their businesses online, they are increasingly turning to sophisticated cyber risk monitoring solutions that help identify threats, reduce vulnerabilities, and protect against data breaches.
The global cyber risk platform market is expected to grow at a compound annual growth rate (CAGR) of 20% from 2021 to 2028. This growth is driven by rising investment from large organizations looking for sophisticated risk management solutions, a growing need for employing resilient measures against increasing levels of cyber-attacks across enterprises, and propelling demand for cost-effective cloud services with advanced operation capabilities.
The market for cyber risk platforms is segmented into segments including software-as-a-service (SaaS), platform-as-a-service (PaaS), infrastructure-as-a-service (IaaS), managed services, consulting services, implementation services, integration services and support & maintenance services. The majority of investment is directed toward SaaS solutions as they are seen as the most cost effective and offer scalability while tailoring individual needs with modules geared toward specific use cases. These SaaS solutions can be deployed on premise or through a private or public cloud infrastructure allowing organizations greater flexibility when it comes to deployment options given their security considerations. Additionally, with advances in technology such as machine learning algorithms used in conjunction with big data analytics many SaaS providers can provide customers with comprehensive threat analytics insights such as threat surface mapping which gives them great visibility into their attack surface making them better equipped to face any threats that may surface.
Investment in cybersecurity solutions will continue due to the ever increasing number of breaches facing businesses today. Companies continue investing heavily into these systems not only for the security layer but also for compliance reasons, so companies across all industries would consider this when building out their security architecture stack.
Cyber risk platform Brinqa nabs $110M amid surge in breaches
Cyber risk platforms have become increasingly important as the frequency and complexity of cyber threats continue to rise. In light of this, businesses have looked for ways to better understand their cybersecurity posture and manage their exposure to cyber risks.
Companies like Brinqa have recently seen a surge in funding, as the value of their products and services is increasingly realized to manage cyber risk. In this article, we’ll delve into the investment landscape for cyber risk platforms and how they are helping businesses address the rising threat of cyber attacks.
What is a Cyber Risk Platform?
A cyber risk platform (CRP) is a cloud-based or on-premise technology solution that provides a comprehensive and interconnected suite of risk management features and tools. These features include integrated risk assessments, vulnerability scanning, real-time risk analytics, exposure analysis, predictive modelling, security rating services and advanced fraud protection. A CRP is designed to assist organizations in understanding their cyber exposure to threats—allowing them to proactively plan for potential incidents and prepare for remediation activities. This platform fits into the broader enterprise risk management (ERM) field, which seeks to help companies optimize their approach to managing various risks such as cyber security, natural disasters, financial volatility and more.
CRPs have become increasingly popular amid ongoing threats posed by malicious actors in the cyber landscape. They are seen by many industry leaders as essential components in digital transformation strategies due to the speed at which they can assess an organization’s overall threat posture — identifying areas where vulnerabilities may lie that require further mitigation efforts. Furthermore, these platforms can act as efficient vehicles for streamlining internal processes such as operational efficiency or compliance adherence to alleviate potential backlogs.
Today’s investment landscape for CRPs compares favorably with other types enterprise risk management solutions given the unique cybersecurity challenges companies face today — prompting organizations worldwide to require better ways of responding quickly and effectively when breaches occur – driving greater demand for more robust solutions . As such, CRPs have become essential investments sought out across all industries from retail to finance due to their ability to provide effective data control capabilities with an intuitive user interface that can quickly scale up or down as needed—delivering actionable insights in real time.
Benefits of Cyber Risk Platforms
Cyber risk platforms are digital tools that help organizations assess, understand, and manage the risk of cyber threats. These solutions range from comprehensive solutions that provide integrated safeguards for businesses to smaller-scale products designed to address specific elements of the cyber threat landscape. As cyber threats continue to evolve and the demand for cyber security increases, the market for such services is expected to grow exponentially over the coming years.
The primary benefit of such platforms is their ability to identify weaknesses in an organization’s security protocols and immediately offer remediation steps to mitigate potential risks. The platforms integrate a wide range of analytics and detection technologies which can identify malicious activities or unauthorized user actions within an environment. Additionally, they provide continuous testing environments to ensure that organizations are kept up-to-date on the latest security threats in their environment. Furthermore, these solutions allow companies to reduce costs associated with hiring IT personnel for specific purposes by allowing automated protection capabilities. This can free up resources that would otherwise have been dedicated towards manual analysis and assessment.
Another key benefit of cyber risk platforms is their ability to be highly customizable based on existing business needs and goals set forth by a particular enterprise system or network architecture design choices. This allows companies to make sure their investments into cyber security are tailored specifically around their infrastructures instead of being applied in blanket manner across all devices or networks with generic rulesets emitted from one source system or control panel configuration setting.
By utilizing these comprehensive offerings through platform integration and software optimization, companies will be well-positioned when defending against increasing levels of complex cyber threats while making informed decisions regarding future investments into their threat prevention capabilities.
Investment Landscape
With cyber threats and data breaches continuing to rise, the investment landscape for cyber risk platforms has seen a surge in activity. This is evidenced by Brinqa’s recent raise of $110M, bringing the company’s total funding to $160M.
This article will explore the investment landscape for cyber risk platforms and how it’s helping businesses tackle cyber risk.
Recent Investments in Cyber Risk Platforms
The cyber risk landscape has evolved significantly in recent years and the development of cyber risk platforms has been at the forefront of this evolution. Cyber risk platforms offer solutions that enable businesses to protect their digital assets from emerging threats. This is made possible through data analysis, machine learning, and artificial intelligence.
Investors have been eager to invest in this growing market, recognizing an untapped opportunity to drive returns from emerging technologies and expanding cybersecurity markets. There have been several recent investments in cyber risk platforms including:
- Darktrace ─ UK company specializing in providing AI-powered Cyber AI platform for autonomous threat detection
- ThreatConnect ─ offers security and threat intelligence platform powered by analytics and AI
- Digital Shadows ─ provides managed threat monitoring and proactive attack surface management with predictive analytics
- CrowdStrike ─ provides cloud-delivered endpoints protection with best-in-class detection rates against known zero day threats
- Exabeam ─ provides behavioral analytics powered by machine learning
These investments illustrate just how quickly the cyber risk marketplace is maturing and how attractive the investment opportunity is for investors looking to capitalize on upcoming trends in cybersecurity solutions.
Brinqa nabs $110M amid surge in breaches
In February 2021, Austin-based cyber risk and compliance firm Brinqa announced that it had successfully raised $110million in a growth funding round led by Insight Partners. The round reportedly gives the company a valuation of over $1billion and marks the highest venture capital ever raised by a single enterprise security company.
This significant surge in funding marks Brinqa as one of the top contenders for cyber risk platforms. This new investment focuses primarily on strengthening Brinqa’s core product capabilities and expanding its presence within organizations across various industries worldwide.
The increased focus on cyber risk management has been partly driven by the proliferation of large-scale data breaches over the past few years, leaving corporate customers seeking better options for protecting their networks and data. As such, strategic investments like Brinqa’s are becoming increasingly popular to address this growing demand. By providing organizations with advanced analytics capabilities and cloud-based dashboards, developers can make more informed decisions at scale to identify potential threats before they have time to cause serious damage or go through an organization’s systems undetected.
In addition to its advanced security solutions, Brinqa provides comprehensive implementation support for any organization looking to get maximum value from their new platform purchase. This includes personalized guidance on setting up tools, integrating with existing infrastructure (e.g., API gateways), customizing reports, building customized dashboards and more. Furthermore, many organizations also look towards Brinqa for vendor assessment analysis- a valuable tool that allows businesses to evaluate vendors’ inherently high-risk areas such as privacy policies, supply chain security versus humanitarian standards , cybersecurity practices , human rights standards , among other areas.
Other Notable Investments
In addition to the previously-mentioned investments, there are several other notable venture capital investments in cyber risk platforms. SecureWorks, a leading provider of IT security services and solutions, recently announced its Series E investment round led by Blackstone with participation from Insight Partners and existing investors. In the same month, another company in the cyber security space, StartupRiot Security Solutions, closed an A round led by Comerica Bank and other undisclosed investors.
Strategic investments have been a key component for many companies developing new cyber risk platforms outside the venture capital realm. Last year, for example, Verizon acquired an enterprise security risk intelligence platform from RiskIQ that enabled customers to monitor asset health and detect threats on their IT networks. In addition, Sony recently formed CyberSecurity Holdings Japan to expand its cybersecurity capabilities worldwide.
The growing interest and involvement of industry giants suggest that more resources will continue to be allocated towards developing new cyber risk solutions in 2021. With security tools becoming more affordable and accessible than ever, it has never been a better time to invest in cyber risks solutions — whether through venture capital or strategic deals like mergers & acquisitions (M&A).
Future Outlook
The cybersecurity sector continues to grow rapidly in response to the increasing sophistication and volume of cyber attacks. According to Gartner, spending on cybersecurity will reach an estimated $133.7 billion in 2022, up from an estimated $114 billion in 2020.
The recent announcement by Brinqa that they have raised $110 million in venture capital funding indicates a keen interest in platforms to help manage cyber risk. This trend is likely to continue. Let’s explore the investment landscape for cyber risk platforms.
Increasing Demand for Cyber Risk Platforms
The increasing complexities and sophistication of cyber attacks drive increased demand for cyber risk platforms. As organizations strive to protect their networks, systems and data from malicious actors, they are actively investing in solutions that can help reduce the risk of a breach. Cyber risk management solutions enable organizations to monitor their cybersecurity posture and respond quickly to any threats or incidents, while also guiding regulatory compliance. Moreover, the demand for these solutions will only grow as businesses become increasingly data-driven and embrace digital transformation initiatives.
Cyber security research firm Gartner predicts that spending on cyber security solutions will reach $124 billion this year, a 10% uptick from 2020. The market will grow further in 2022, when investments are expected to top $133 billion. This high demand is being met with innovative new technologies such as artificial intelligence (AI), machine learning (ML), cloud security services, user and entity behavior analytics (UEBA) and more.
These solutions enable organizations to gain insight into potential threats before they cause significant damage, quickly respond to any incidents should damage occur and continuously monitor activities across their networks for insights into suspicious behavior or unusual changes. These capabilities help organizations manage cybersecurity risks effectively and proactively protect their information assets from malicious actors constantly looking for opportunities to exploit weaknesses in the system.
The growing awareness around cybersecurity risks has driven investment in these solutions globally; companies in all markets have begun actively investing in such tools to ensure reliable data security while ensuring compliance with evolving industry regulations at the same time. Looking forward, this trend toward increased investments in cyber risk platforms is projected to continue into 2022 and beyond as businesses become even more reliant on digital systems across the globe.
Challenges Ahead
The cyber risk platform market is expected to experience significant growth shortly as organizations continue to invest in technologies to help protect their data and improve their cyber security postures. However, several challenges must be addressed for the market to achieve its potential.
Firstly, the lack of an internationally recognized standard for cyber risk technology could lead to buyers’ confusion regarding the quality of products from different vendors. Secondly, with an increasing number of platforms and software appearing in the market, it can be difficult for organizations to differentiate between platforms and select one that best fits their needs. Thirdly, as regulations such as GDPR and CCPA become increasingly common across industries, companies must ensure that any solution they select is compliant with any existing data protection laws or policies they abide by. Finally, uncertainty surrounds how resilient a cyber risk platform would be against rapidly evolving attack methods from sophisticated hackers.
Considering these potential challenges, organizations need to consider several factors before investing in a cyber risk platform to maximize their return on investment. This includes understanding their specific needs, researching applicable laws or regulations that must be followed, exploring different vendor’s offerings along with any associated costs or services included in each solution, and conducting thorough testing of proposed solutions before committing financially.
Conclusion
As the cyber risk landscape evolves, investments in cyber risk platforms will continue to rise. As organizations become increasingly dependent on digital technologies, the need for organizations to protect against and mitigate risks from data breaches and other cyber threats will only increase. Cyber risk platforms have evolved to allow businesses to monitor their digital infrastructure, automate processes for responding to threats, and allow for rapid changes to security protocols as needed. With the potential for high returns, investments in these technologies remain a hot topic among investors and businesses.
Currently, there are a variety of emerging startups and established players working on developing cyber risk platforms. These companies come from various backgrounds ranging from financial services firms, software developers, insurance providers – all of whom are geared toward helping organizations manage their cyber risk more efficiently. Investment opportunities include venture capital funds that focus on incubating startups related to cyber security and acquiring existing technology firms that offer specialized tools or platforms related to cyber security investment opportunities. While many of these companies are still in the early stages of growth and development, it is foreseeable that they will become major players in the industry over time.
Overall, the investment landscape for cyber risk platforms promises a broad range of opportunities including expanding into new markets aligned with markets’ needs: real-time monitoring and analytics capabilities; artificial intelligence; comprehensive threat intelligence; secure data sharing; secure network access control systems; reliable backup solutions; incident response plans: plus training and awareness initiatives amongst others across different industries depending upon specific requirements or challenges faced by customers as well as clients such as governmental or non-governmental bodies etc.. Therefore, investments in this area will certainly be an attractive industry offering both high returns on capital invested when long-term strategies employed while providing significant value propositioning which includes enhanced efficiency within existing corporate infrastructures; cost savings through reduced manual labor costs associated with handling traditional security vulnerabilities (such as prevention solution); plus greater interoperability between different networks.
