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The field of cybersecurity has seen rapid growth amid the pandemic with an increased focus on IT.
The industry revenue is expected to exceed $183.1 billion in 2024. This figure is expected to reach $273.6 billion by 2028, at a CAGR of 10.56%.
The growth of the AI ​​market is a key industry driver to watch.
According to Morgan Stanley, the global AI-based cybersecurity products market is expected to grow from $15 billion in 2021 to $135 billion by 2030.
We've put together a list of 20 fast-growing startups focused on tackling cybersecurity issues.
1. Abnormal security
Search growth over 5 years: 809%
Search Growth Status: Explosive
Year of establishment: 2018
Location: San Francisco, California
Funding: $534M (Series C)
What they do: Abnormal Security offers a cloud-based email security platform that protects against targeted attacks (its software runs inside Office 365 and G Suite environments). Its primary use case is to help detect email account compromises, prevent phishing and malicious attacks, and provide automated incident response options.
In August 2024, the startup raised $250 million in Series D funding at a valuation of $5.1 billion.
2. Sayware
Search growth over 5 years: 26%
Search Growth Status: Regular
Year of establishment: 2016
Location: Jersey City, New Jersey
Funding: $73M (Series C)
What they do: Cyware builds virtual cyber fusion centers that enable enterprise SOAR and threat intelligence automation. Cyware products include automated threat analysis designed to aid in proactive threat investigations.
3. Snake
Search growth over 5 years: 411%
Search Growth Status: Explosive
Year of establishment: 2015
Location: Boston, Massachusetts
Funding: $1.2 billion (Corporate Round)
What they do: Snyk is a software company that creates developer-oriented analytics tools to find and fix vulnerabilities in open source software. Additionally, the product monitors vulnerabilities in application code. The product is currently used by 2.2 million developers.
4. Lace
Search growth over 5 years: 150%
Search Growth Status: Peak
Year of establishment: 2015
Location: San Jose, California
Funding: $1.9 billion (series unknown)
What they do: Lacework helps automate cloud security. The platform covers configuration assessment, threat detection, host intrusion detection, and compliance verification across multi-cloud environments. The software integrates with environments built on AWS, Azure, Google Cloud, and Kubernetes. The company is currently valued at $8.3 billion after one of the largest funding rounds in the US in 2021.
5. Axonius
Search growth over 5 years: 382%
Search Growth Status: Explosive
Year of establishment: 2017
Location: New York, New York
Funding: $865M (Series E)
What they do: Axonius is a cybersecurity asset management platform for enterprise clients in industries including energy and retail. The platform has 317 pre-built integrations to automate inventory management. Specifically, Axonius’ software identifies asset security vulnerabilities based on a company’s cybersecurity policies and sends automated alerts to relevant team members when a potential vulnerability is found.
In March 2024, the company raised $200 million in Series E extension funding after surpassing $100 million in ARR in 2023.
6. Security without a name
Search growth over 5 years: 4200%
Search Growth Status: Regular
Year of establishment: 2020
Location: Palo Alto, California
Funding: $220M (Series C)
What they do: Noname Security is an enterprise API security company. Their security platform uses AI-powered detection to find API vulnerabilities like data leaks and cyberattacks. Enterprises use the platform to cover all four pillars of API security, including discovery, situation management, runtime security, and API security testing. The company currently works with 20% of the Fortune 500 and was recently named to the CRN Security 100 list.
7. Hawks Hunt
Search growth over 5 years: 233%
Search Growth Status: Explosive
Year of establishment: 2016
Location: Espoo, Finland
Funding: $43.3M (Series B)
What they do: HoxHunt is a cybersecurity awareness platform. So instead of preventing or managing attacks, the platform simulates phishing, social engineering, and other attacks in order to raise awareness among employees. It also rewards users who report potential security issues. HoxHunt offers cybersecurity training designed for individuals who fail to recognize threats.
According to the startup, its solution helps businesses reduce phishing attacks by 70%. The startup's revenue reached $4.2 million in 2023, up 49% year-over-year.
8. Arctic Wolf Networks
Search growth over 5 years: 19%
Search Growth Status: Regular
Year of establishment: 2012
Location: Eden Prairie, Minnesota
Financing: $899.2 million (convertible notes)
What they do: Arctic Wolf Networks provides cloud-based security software and managed services that provide continuous monitoring and alerts. The platform uses APIs and machine learning to provide real-time analytics. It helps security teams bridge the operational gap with personalized strategic guidance.
9. Tanium
Search growth over 5 years: 28%
Search Growth Status: Explosive
Year of establishment: 2007
Location: Kirkland, Washington
Funding: $1 billion (secondary market)
What they do: Tanium is an endpoint management and security tool. Customers can retrieve data on every endpoint and implement changes in seconds, allowing organizations to strengthen their protection against cyber threats.
10. Nozomi Networks
Search growth over 5 years: 27%
Search Growth Status: Regular
Year of establishment: 2013
Location: San Francisco, California
Funding: $266M (Series E)
What they do: Nozomi Networks is a cybersecurity platform specializing in protecting operational technology and the Internet of Things. The company’s suite of tools provides real-time ICS monitoring, hybrid threat detection, asset inventory, and vulnerability assessment. Nozomi Networks recently raised $100 million in Series E funding to expand product development.
11. Ocean 81
Search growth over 5 years: 140%
Search Growth Status: Regular
Year of establishment: 2018
Location: Tel Aviv, Israel
Funding: $165M (Series C)
What they do: Perimeter 81 is a cybersecurity company that provides secure, cloud-based networking solutions for businesses. Its Network as a Service (NaaS) platform provides secure access to corporate resources and protects against network threats. Perimeter 81 offers businesses a simplified and secure way to manage their networks, allowing employees to securely access corporate resources from anywhere.
12. Claroty
Search growth over 5 years: 8800%
Search Growth Status: Regular
Year of establishment: 2015
Location: New York, New York
Funding: $740M (Series Unknown)
What they do: Claroty is a cybersecurity toolkit designed for industrial enterprise customers. Features include threat detection, remote access, and a management console solution. Specifically, the Claroty platform helps enterprise customers detect, protect, and manage their OT, IoT, and IIoT assets.
In March 2024, the startup raised $100 million in strategic growth funding after the company surpassed $100 million in ARR during 2023.
13. Deep instinct
Search growth over 5 years: 135%
Search Growth Status: Regular
Year of establishment: 2015
Location: New York, New York
Funding: $321.6M (Series Unknown)
What they do: Deep Instinct is a cybersecurity platform that specializes in malware protection. Their product applies deep learning technology to proactively prevent attacks. Deep Instinct’s solution supports over 100 file types across all endpoints across the most popular operating systems.
14. 1Password
Search growth over 5 years: 69%
Search Growth Status: Regular
Year of establishment: 2005
Location: Toronto, Canada
Funding: $920.1M (Series C)
What they do: 1Password is a password management and digital security startup. Users can easily create, store, and manage passwords in one place. In addition to passwords, 1Password offers encrypted digital vaults to store credit card details, notes, documents, etc. Today, 1Password has over 150,000 enterprise customers and 15 million users.
15. Orca Security Company
Search growth over 5 years: 444%
Search Growth Status: Explosive
Year of establishment: 2019
Location: Portland, Oregon
Funding: $632M (Series C)
What they do: Orca Security develops a security product for cloud infrastructure. It supports AWS, Azure, and Google Cloud. Orca Security’s software focuses on identifying system risks, including vulnerabilities and malware. It then prioritizes each risk based on its level of importance. With Orca’s latest Series C funding round, the company is now valued at $1.8 billion, a 50% increase from its previous valuation.
16. Jet Guardian
Search growth over 5 years: 5000%
Search Growth Status: Regular
Year of establishment: 2017
Location: Paris, France
Funding: $56M (Series B)
What they do: GitGuardian is a system that monitors all public activity on GitHub. The monitoring software helps prevent leaks of confidential API tokens, database credentials, and certificates. It sends automated alerts when any of these threats are detected.
17. Imota
Search growth over 5 years: 86%
Search Growth Status: Explosive
Year of establishment: 2015
Location: Boston, Massachusetts
Funding: $258.2 million (Series E)
What they do: Immuta is a cloud-based data governance platform. The product’s unified interface includes sensitive data discovery, data access control, and data usage auditing features that allow quick access for relevant teams.
18. Red Canary
Search growth over 5 years: 39%
Search Growth Status: Explosive
Year of establishment: 2014
Location: Denver, Colorado
Funding: $129.9M (Series C)
What they do: Red Canary is a multi-dimensional endpoint threat detection system. Their platform combines automated software and human analysis to detect and respond to malicious events.
19. Privasera
Search growth over 5 years: 44%
Search Growth Status: Peak
Year of establishment: 2016
Location: San Francisco, California
Funding: $67.3M (Series B)
What they do: Privacera is an enterprise software that combines data discovery, classification, centralized access management, and data anonymization into one platform. Their data security and governance platform helps share information without compromising regulatory compliance requirements.
20. Menlo Security
Search growth over 5 years: 28%
Search Growth Status: Explosive
Year of establishment: 2012
Location: Mountain View, California
Funding: $250.8M (Series E)
What they do: Menlo Security is a cybersecurity company that develops tools to combat malware and phishing. The company's technology mirrors content from a remote browser into the cloud to enable secure web access.
conclusion
That concludes our list of 20 emerging cybersecurity startups that are growing.
From endpoint protection to email security, the products these startups are building address a wide range of cybersecurity business needs. With the ongoing digital transformation, we can expect even more growth in the cybersecurity space in 2024 and beyond.
