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Information Security Report

Q1 2022

Information Security Report

May 6, 2022

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Information security becomes leading priority in 2022

Digital transformation and geopolitical risk have combined to move the information security sector to the top of IT agendas, pushing it past other categories of enterprise software. Ransomware has become a prevalent issue for many organizations, with security software spending on track to reach $114 billion in 2022. Meanwhile, startups are staring down another bear market, which could propel consolidation among the recent wave of cloud and endpoint security leaders.

Our Q1 2022 Emerging Tech Research Report on information security provides an update on the industry, exploring emerging opportunities in cloud-native application protection platforms, security service edge, and threat intelligence. The report also includes a market map that helps visualize the various sub-segments of the industry, from application security to identity and access management.
 
Key takeaways
 

  • VC investment in the information security space faced pressure from declining share prices of high-growth incumbents, dropping 35.8% quarter-over-quarter to $5.1 billion.
     

  • Median late-stage valuations took a hit, dropping 26.1% from 2021. Early-stage VC investment remains robust, though a slowdown may be on the horizon as market conditions remain depressed. 
     

  • An overall tech market slowdown put the IPO market on ice with no listings recorded for Q1.
     

  • Web3 security remained a driving theme for VC funding, despite a bear market for cryptocurrency.

 


Table of contents
Vertical overview 3
Q1 2022 timeline 4
Information security landscape 5
Information security VC ecosystem market map 6
VC activity 8
Emerging opportunities 15
Cloud-native application protection platforms 16
Security service edge 19
Threat intelligence 22
Select company highlights 25
Exabeam 26
Lacework 28
Snyk 30