An increase in threats and cyber-attacks against enterprise systems, data and personnel requires an investment in innovative organizations to provide defensive solutions. ForgePoint Capital is answering the challenge by announcing Fund II, the industry’s largest fund focused exclusively on cyber security.
ForgePoint will invest up to $450 million in early-stage and select growth companies addressing the industry’s most pressing cyber challenges. Fund II focus areas will include cyber intelligence, privacy, security services and infrastructure protection.
Fund Anticipates Global Demand For More Cyber Solutions
The venture fund believes that enterprise security professionals understand how the current market is fragmented. Market research firm Fortune Business Insights sized the global cyber security market value at $112 billion in 2019.
Market growth is driven by the rising adoption of e-commerce online platforms and the emergence of disruptive technologies such as artificial intelligence (AI), Internet of Things (IoT), blockchain, and others. The research firm projects the global cyber security market to grow at 12.6% CAGR to $281.7 billion by 2027.
With the rising IoT market growth, the adoption of IoT solutions and services is also increasing in IT security applications. Therefore, the adoption of IoT and machine learning in security is considered as one of the swiftly developing cyber security market trends.
Additionally, big data technology is assisting organizations in studying and analyzing the potential risks. Considering the impact of these technologies, the adoption of IoT and AI is increasing exponentially in the cyber security solutions.
One of the key trends noted by the research company that enable the overall growth of the cyber security market is the rising adoption of cloud computing. Cyber security solutions are based on complex mathematical prediction models, handling large amounts of data. This data monitoring can only be fulfilled by cloud technology in a secure and reliable environment at low cost.
Market suppliers are focusing on integrating cloud computing with cyber security solutions. These cloud computing services are backed up by ‘Analytics as a Service’ (AaaS) offerings, allowing users to detect and mitigate uncertain threats quickly.
Market Constraints Holding Back Exponential Cyber Security Growth
With the growth in number of cyber security threats and tools for cyber-attackers, the requirement for advanced cyber solutions to prevent and detect such attacks continues to grow. The traditional cyber security solutions are simply not enough to secure organizations from advanced threats of cloud, network, endpoint security and others.
In addition, lengthy and complex algorithms are required for cyber security solution providers to develop technically-advanced solutions. Another factor to consider is the high cost associated with cyber security solutions and services that limits the adoption among small and mid-sized enterprises.
ForgePoint has already made several investments out of Fund II, including recent investments in Cysiv, an enterprise SOC-as-a-Service company; Huntress Labs, a provider of advanced threat detection to managed service providers (MSPs) and value-added resellers (VARs) for medium-sized businesses; and Secure Code Warrior, that provides a suite of secure coding tools that trains developers to build software with a security mindset.