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Investors actively increase investments in cybersecurity
According to market analysis, investments in cybersecurity reached record levels last year. The total volume of M&A contracts in this sector amounted to $77.5 billion.
The year 2021 was the most successful for the cybersecurity sector in its history, with a huge number of deals, including mergers and acquisitions. Investment financing in the M&A market amounted to $29.5 billion. In total, last year market participants signed 1,043 investment contracts and carried out 286 M&A transactions. All of these contracts were in the information security sector, of which 14 agreements were for more than $1 billion and 83 were for more than $100 million. 130 companies directed funds to this sector, and the popularity of private investments continues to grow.
The sector of cloud security, development for access management, and data protection are of the greatest interest among investors. According to analysts, such activity in these areas is not accidental. The fact is that new ways to conduct cyber intrusions appear regularly, and companies want to get maximum protection from this threat. One option to reduce the risk of cybercrime is a virtual private network or VPN. It helps protect against threats such as spoofed Wi-Fi networks, packet-sniffing, and proxy attacks. A VPN hides the real IP, which minimizes the risk of hackers targeting the real IP address.
Crunchbase estimated the volume of investments that were related only to the cybersecurity sector. Last year, this amount exceeded $14 billion, which was a record value. Previously, the highest value here was $7.8 billion. CrowdStrike Holdings was very popular among investors. Its market capitalization reached the $65 billion mark, which put the brand in first place in terms of investments in the endpoint protection sector. Fortinet is in second place with an estimated $55 billion, followed by Datadog with a market capitalization of $50 billion.
Experts note that the activity of investments in cybersecurity is observed this year and will continue in the near future. According to analysts’ forecasts, investors’ interest will also increase in the field of integrated solutions for protection against network threats. Increased attention to this segment is conditioned by the increasing number of cyberattacks, which become more complicated and accessible every time. At the same time, it is quite easy to buy malware on the darknet, costing from a few dollars. To protect themselves from hacks and data leaks, companies invest in implementing various information security solutions.