With so many recent hacks and widespread cyber attacks, cybersecurity awareness is on the rise. KPMG’s recent report, U.S. CEO Outlook 2017: Disrupt and grow, reveals that CEOs expect to make significant cyber investments with 75% citing it as an opportunity to find new revenue streams and innovate. Cybersecurity has been a hot sector for venture capital investment in recent years, likely due to the ever-evolving nature of threats. Fortunately, there are top-notch cybersecurity companies starting up all over the world pushing the envelope in security innovation to keep consumers, businesses and federal governments safe from the latest hacks. Here are 6 of the world’s top hubs for cybersecurity companies, in no particular order:
San Francisco Bay Area & Silicon Valley
Home to companies such as FireEye, Palantir and Palo Alto Networks, it should come as no surprise that the greater Bay Area, encompassing both San Francisco and Silicon Valley, is a key hub for the cybersecurity industry. The Bay Area attracts startups of all sizes largely due to venture capital presence, entrepreneurship, networking opportunities and top developer and tech talent. Cybersecurity startups are drawn to this tech capital for the same reasons as any budding company across industries: easy access to the complete startup ecosystem.
The United Kingdom
Increasingly, Europe is becoming a popular center for cybersecurity companies, like Darktrace, SentryBay and Wandera, especially out of the United Kingdom. With an increase in cybersecurity threats targeted at Europe, such as the WannaCry and Petya ransomware attacks, the region has produced plenty of innovative cybersecurity startups who are aimed at preventing another European, and global, cyber attack.
As the capital city and home to our government, Washington D.C. and the surrounding area, commonly referred to as the “Cyber Corridor,” are prime locations for cybersecurity companies, especially those that aim to receive funding from the Federal Government. Additionally, Washington D.C. is home to a large pool of cybersecurity talent, most of whom are defense and Federal contractors. With innovation in the region on the rise, it also opens the door for both venture and angel investments. Top cybersecurity companies with a presence in the region include Tanium, Invincea and Siemens Government Technologies.
Referred to as “Silicon Alley,” the New York and New Jersey areas are another prime spot for security startups. With a mix of traditional businesses, a burgeoning tech industry and Wall Street all in proximity, cybersecurity companies based in New York can easily foster collaboration, access high-profile investment bank customers, combat threats and be part of one of the fastest-growing startup hubs. With New York being the financial capital of the world, cybersecurity touches businesses from startups to the Fortune 500, pushing New York to establish first-in-the-nation cybersecurity regulations, such as the due diligence regulations that took effect on March 1st. Companies in the space include Accenture Security, Biocatch and Intralinks.
As the birthplace of Check Point Software, Israel, often referred to as “Startup Nation,” is a global cybersecurity powerhouse at the center of the $82 billion industry, according to Forbes. Israel assists smaller nations, creating over 300 cybersecurity startups, exporting $6.5 billion in cybersecurity products last year alone, and attracts foreign investors. Some key contributing factors to Israel’s cybersecurity success stem from the country’s unique ecosystem allowing the government to collaborate in an advisory role with cybersecurity companies and its military, the Israeli Defense Forces (IDF), function as a startup incubator and accelerator.
Another East Coast technology engine, the city of Boston serves as a major U.S. cybersecurity hub. Many Israeli based security companies choose to set up shop in Boston in order to expand their U.S. presence. Boston offers security companies the benefit of being close to the vast amount of healthcare and biotech leaders based in the area, which apart from investment banks, are some of the most key early customers in the industry. High-level educational institutions, such as Harvard and MIT, and a healthy venture landscape are also contributors to the growing security presence. Boston is home to prominent companies in the space such as CyberArc, Rapid7 and Carbon Black.