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Associated Press
28-04-2025
- Business
- Associated Press
Global Cybersecurity Market To Reach $1 Trillion Annually By 2031
Cybersecurity Ventures anticipates 15 percent year-over-year growth over the next five years 'Global spending on cybersecurity products and services is expected to reach $454 billion annually (USD) in 2025, up from $260 billion in 2021.'— Cybersecurity Ventures SAN FRANCISCO, CA, UNITED STATES, April 28, 2025 / / -- The imperative to protect increasingly digitized businesses, governments, schools, Internet of Things (IoT) devices, and consumers from cybercrime will propel global spending (1) on cybersecurity products and services to $1 trillion (USD) annually by 2031, according to the 'Cybersecurity Market Report' due out from Cybersecurity Ventures and Evolution Equity Partners on Jun. 16, 2025. Global spending on cybersecurity products and services is expected to reach $454 billion annually (USD) in 2025, up from $260 billion in 2021. 'In advance of the report, we are releasing our cybersecurity market prediction today at the RSA Conference 2025 in San Francisco' says Steve Morgan, founder of Cybersecurity Ventures. For 32 years, the RSA Conference has been a driving force behind the world's cybersecurity community. AI is expanding a $2 trillion total addressable market or TAM (2) for cybersecurity providers, according to a 2024/2025 study by McKinsey, a global management consulting firm and trusted advisor to the world's leading businesses, governments, and institutions. 'One of the areas that is extremely compelling is the opportunity to build a security layer around agentic AI,' says Richard Seewald, founder and Managing Partner at Evolution Equity Partners. 'If you think about the volume of agents that will be put into the market, the opportunity to create cybersecurity companies that defend and protect that layer are significant.' McKinsey's study is particularly relevant to the CISOs and vendors, the cybersecurity buyers and sellers, who made a pilgrimage to this year's RSA Conference. 'Based on the organizations we have served, cyber budgets are still under tremendous pressure to reduce cost when, in reality, they are often under-budgeting when framed in terms of the organization's risk profile,' says Justin Greis, Partner and North American Cybersecurity Practice Leader at McKinsey. 'More often than not, when we are engaged to analyze and possibly reduce cybersecurity costs, we typically end up increasing the cyber budget because the cyber risks uncovered exceed management's and the board's risk appetite,' adds Greis. 'More and more CISOs are requesting and reporting their budgets, not just in dollars and cents, but framed in terms of risk to critical business processes, products, services, or strategic goals/objectives.' Today, nearly 15 percent of (corporate) cybersecurity spending comes from outside the chief information security office (CISO), and non-CISO cyber spending is expected to grow at a 24 percent CAGR over the next three years, according to the McKinsey study, which goes on to state that this has changed from a decade ago, when almost all cybersecurity spending came from the CISO organization. Going forward, providers will need to increasingly cater to non-CISO customers, the McKinsey study posits, with most non-CISO cyber spending coming from buying centers responsible for cloud, product, network, and audit and compliance. Despite its current market size, cybersecurity has a lot of headroom to grow. 'We are still in the early innings of a secular trend in the cybersecurity space that involves increased spend by large enterprises, smaller businesses and consumers alike, a rapidly expanding attack surface, market consolidation and demand for next generation products and services that makes this a very compelling segment for investment,' says Dennis Smith, Founder and Managing Partner at Evolution Equity Partners. (1) Spending is actual dollars spent, or expected to be spent. The spending prediction figures from Cybersecurity Ventures includes all countries globally, B2B and B2C, plus a portion of any markets that are converged with cybersecurity such as physical security and surveillance, as well as automotive security, medical device security, military cyber defense technology, and others. It also counts in cyberinsurance policies. (2) TAM is the total revenue opportunity available to a product or service if 100 percent market share is achieved. TAM does not represent actual dollars spent, or expected to be spent. The TAM figures from McKinsey are global and primarily focused on B2B, but not B2C or other markets converged with cybersecurity such as physical security and surveillance, automotive security, and others. ABOUT Cybersecurity Ventures is a leading cybersecurity market watcher and the publisher of Cybercrime Magazine, Page ONE for the global cyber economy, and a trusted source for cybersecurity facts, figures, and statistics. Evolution Equity Partners is an international venture capital investor led by technology entrepreneurs who have built software companies around the world and who leverage tremendous operating, technical, product development and go-to-market expertise to help entrepreneurs win. Malcomb Farber Cybersecurity Ventures +1 631-680-8660 email us here Visit us on social media: LinkedIn Instagram YouTube X Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
Yahoo
13-03-2025
- Business
- Yahoo
Pentera raises $60m in Series D funding
Pentera, a US-based cybersecurity software company focused on automated security validation solutions, has secured $60m in its Series D funding round. This funding round was led by Evolution Equity Partners, with participation from Farallon Capital Management. The latest funding round brings Pentera's total funding to $250m. With the new funding, Pentera aims to accelerate innovation through research and development, AI integration, and expansion in the US market. Pentera said that since its previous funding round in December 2021, it has increased its annual recurring revenue (ARR) by more than 300% and expanded its customer base by 200%. The company's platform aims to address the evolving cyber threat landscape, enabling organisations to adopt continuous threat exposure management frameworks to ensure defences are validated against AI-driven threats. Pentera's platform emulates real-world adversarial techniques to identify security gaps across on-prem networks, web assets, and multi-cloud environments. It allows security teams to analyse attack paths, identify root causes, and prioritise remediation for effective risk reduction. Pentera CEO Amitai Ratzon said: 'Security teams face relentless, automated threats that traditional testing methods can't match. This investment allows us to accelerate innovation and expand our platform to help enterprises continuously validate their security against real-world attacks. 'As we execute our strategy to exceed $200m in ARR, we are actively exploring strategic M&A opportunities to drive market consolidation and deliver even greater value to our customers.' Evolution Equity Partners managing partner Richard Seewald said: 'Pentera has redefined enterprise security testing and validation practices. Pentera's exceptional growth, strong enterprise adoption, and category-defining innovation make it the clear leader in Automated Security Validation. 'We are proud to lead this investment and continue our relationship with Pentera as it scales globally, expands its technology, and continues to set the industry standard for security validation.' More than 1,100 enterprises, including Casey's, Wyndham Hotels & Resorts, and Virgin Atlantic, are said to use Pentera to validate their security defences. In January 2022, Pentera raised $150m in Series C funding, which brought its valuation to $1bn. "Pentera raises $60m in Series D funding " was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
12-03-2025
- Business
- Yahoo
Pentera nabs $60M at a $1B+ valuation to build simulated network attacks to train security teams
Strong and smart security operations teams are at the heart of any cybersecurity strategy, and today a startup that builds tooling to help keep them on their toes is announcing some funding on the back of a lot of growth. Pentera — which has built a system that launches simulations of network attacks to stress test software and human response — is announcing $60 million in funding, a Series D that values the Boston-based, Tel Aviv-founded startup at over $1 billion. The funding will be used for M&A and to continue developing product, CEO Amitai Ratzon said in an interview. Pentera is a play on the term 'pen testing', which is short for penetration testing, programs that have been devised to help drill security teams on potential attack techniques. This is effectively what Pentera has built to an elaborate degree in a product that is officially described as 'automated security validation.' 'We provide enterprises and governments a technology that, with a click of a button, can launch a mega attack against themselves, and with another click, the genie goes back into the bottle,' said Ratzon. 'The beautiful thing is that it's all safe by design.' And in contrast to, say, a fire drill in an office, Pentera's simulated attacks are carried out in a way where the rest of the organization outside of the security team is none the wiser — not unlike a lot of real-world security breaches in fact. The round is coming on the heels of Pentera growing customers by 200% to 1,100 organizations and ARR by 300% in the last four years, underscoring the demand in the market for its tools. Evolution Equity Partners is leading the round, with Farallon Capital participating. Prior to this, the company had raised $190 million in a combination of primary and secondary equity, according to PitchBook. Its other investors include Insight, K1 and Blackstone. Pentera's rise is coming at a time of a lot of automation in the world of cybersecurity. The world of cybersecurity has been virtually ambushed by the arrival of AI, which is used both by malicious hackers to breach systems, and also by a wide array of tools to help identify and stop those attacks in their tracks. Pentera takes this swing in AI into account as part of its platform. When it launches attacks, it does so around specific vulnerabilities and in the process identifies the different areas in an organisation's network that might be exploited. Typically, this could throw up as many as 10,000 alerts, Ratzon said. To be fair, an overwhelming number of alerts in live products is a classic issue with a lot of security tooling, and a number of startups are tackling that problem, too. In the case of Pentera, it automatically takes that 10,000 and whittles it down to six or eight root causes or exploitable vulnerabilities, he said, and then provides suggestions for how to fix them, and then leaves that to the teams to handle. "Pentera has redefined enterprise security testing and validation practices,' said Richard Seewald, managing partner at Evolution Equity Partners, in a statement. 'Pentera's exceptional growth, strong enterprise adoption, and category-defining innovation make it the clear leader in Automated Security Validation. We are proud to lead this investment and continue our relationship with Pentera as it scales globally, expands its technology, and continues to set the industry standard for security validation." Sign in to access your portfolio
