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Emerging Tech Research: Information Security

Q3 2021

Emerging Tech Research: Information Security

November 1, 2021

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Web3 security, ransomware protection drive information security dealmaking

VCs invested $5.4 billion in information security in Q3, down slightly from Q2 but continuing a record year of funding, as dealmaking rises in tandem with both cyberattacks and corporate security spending.

Our Q3 Emerging Tech Research on infosec breaks down a strong quarter for the sector and highlights opportunities in Web3 security, data protection and encryption, and risk assessment.

Key takeaways
 
  • Venture funding in the information security sector reached an annual total of $16.2 billion, on pace to more than double 2020’s record deal value.
 
  • Late-stage deals are poised to exceed early-stage activity for the first time since 2015, as the pandemic-driven trend of low early-stage deal count lingers.
 
  • The market for enterprise Web3 security, a set of solutions that protect corporations' investments in cryptocurrency projects, is expected to grow at a 71% CAGR to reach $3 billion by 2024.

Table of Contents
Vertical overview 3
Q3 2021 timeline 4
Information security VC ecosystem market map 5
VC activity 6
Emerging opportunities  
Data protection & encryption 14
Security risk assessment 17
Web3 security 20
Select company highlights  
Exabeam 24
Lacework 26
Snyk 28