The Third Evolution of Cybersecurity: How Security Threats and Cyber Defenses Shifted Over the Years
July 16, 2018

The Third Evolution of Cybersecurity: How Security Threats and Cyber Defenses Shifted Over the Years

Executive Summary

Unlike other rapidly growing industries, the cybersecurity industry already features a developed ecosystem with important public and private companies at all stages of maturity. Even as some major incumbents decline, startups rapidly grow to fill new niches. Large tech firms then swallow these upstarts just as quickly.

Over the past decade, consumers and enterprises have fundamentally changed the way they access applications and data. The ubiquity of laptops, smartphones, and other connected devices has caused a surge in the number of endpoints and ways for cybercriminals to gain access to private networks and systems. As a result, the entire cyber battlefield has grown in both complexity and scope.

“Cybersecurity risk is uncharted territory. It’s going to get worse, not better”

Warren Buffett
(Berkshire Hathaway 2018 Annual Shareholder Meeting, May 5th, 2018)

In order to understand the future of cybersecurity, we must look at the industry as a whole – both from a technological and societal standpoint. In this report, we focus on six key areas of inquiry that investors should consider so they can make intelligent investment decisions.

Understanding Cybersecurity: What is cybersecurity, and how does it relate to the broader IT security industry? Why are there so many cybersecurity companies today, and how do they serve the needs of companies across all sectors?

The Evolution of Cybersecurity: New Perspectives: How has cybersecurity changed over the years? How do innovative new companies compete against well established giants in this rapidly evolving environment?

Trends in Hacking Activity & Data Breaches: How are cyber threats today different from those of years past? How can we quantify trends in “hacks” and data breaches? What impact do cybersecurity breaches have on companies and consumers today?

Current Technical Trends in Cybersecurity: What current technical trends are likely to shape the future of cybersecurity in the immediate future and beyond? What are the underlying secular trends that continue to drive innovation in the industry?

Regulatory Trends and Concerns in Cybersecurity: What role does government play in the cybersecurity industry, and what areas are most likely to see increased regulation in the future? What are the driving forces behind the increasing regulatory scrutiny of cybersecurity practices?

Understanding the $100 Billion Dollar Cybersecurity Market: Can we accurately estimate the overall market potential for cybersecurity companies? What do current cybersecurity spending trends tell us about areas of opportunity in the future?

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This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.