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Cybersecurity startup funding jumps to $150M in 2019

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Cybersecurity startup funding jumps to $150M in 2019

Cybersecuritystartups have received more than $150 million in funding so far in 2019, industry data tracker Tracxn has said. This is a significant jump from $4.5 million last year.

As companies focus more on digitisation, capital infusion into the sector is bound to increase, experts said.

The number of funding rounds have been comparatively lower this year — only 8 rounds – but these startups received bigger cheques from investors, the data showed.

In 2017, the sector got more than $100 million in capital, but that dropped last year.

Around 30 cybersecurity startups were founded in 2016, a 50% jump compared to 2012. This year, however, that number has dropped to 13, from 24 last year.

There are multiple reasons for the increase in investment into the sector this year, experts said.

“The market size was quite small a few years back and the awareness about the importance of cybersecurity was also quite low,” said Rajpreet Kaur, principal analyst of Gartner.

The priority given to digital transformation has changed the sector, she added.

A number of domestic cybersecurity companies today cater to a global clientele. The funds raised by cybersecurity startups are mostly used for research and development of products, while a good portion is also used for scaling up and marketing.

According to a joint report by industry lobby Nasscom, Data Security Council of India and PwC, the cybersecurity market is projected to touch $35 billion by 2025.

Saket Modi, co-founder of cybersecurity startup Lucideus which recently raised funds, said India has traditionally been a services market, unlike Israel which has been known for its products.

“That mindset is slowly changing in the Indian scenario and startups are now building products for global markets at a much effective cost price,” he said.

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