Cybersecurity is a rapidly developing industry that helps protect the digital world that we live in today. As cyber threats continue to increase and the world becomes more digital, cybersecurity has become important for companies to invest in to prevent cyber-attacks and keep information safe. Today, this blog will discuss the history and growth of cybersecurity as well as some key players innovating in this industry.
The Growth of Cybersecurity
Cybersecurity Industry Analysis
The First Cyber Attack
Cybersecurity has been around almost as long as computers have been around, as early as the 1970s. In 1971, an engineer named Bob Thomas wrote the code for a virus called Creeper that could move across a network and between computers. In response to this, the first person to create email, Ray Tomlinson, wrote a code called Reaper that searched networks to find and remove Creeper, essentially creating the first anti-virus program. This is where the evolution of cyber-attacks and cybersecurity began.[1]
Early 2000s
Many things became digitized at the beginning of the 2000s, which created even more opportunities for cyber-attacks and higher risks for businesses and enterprises. Many may remember when eBay, Yahoo, Amazon, and others were hacked during this time.
Website hacking soon turned into credit card breaches and ransomware. In 2013, Target was hacked and 40 million of the customer’s payment card accounts were affected. Other companies may have had similar issues at the time, and as the threats increased, companies began to worry about business disruption, loss of customer loyalty, and lawsuits. These issues helped to increase the need for improvements of cybersecurity measures, creating a space for new companies that specialize in this industry to assist.
Key Players
Many companies now exist to assess and manage threats for companies and ensure their data is protected, below are some MicroVentures portfolio companies that are innovators in this industry.
Dragos
A key player in this industry is Dragos, an industrial cybersecurity company that helps companies protect their systems as effectively and efficiently as possible with its in-depth knowledge of operational technology (OT) systems.[2] Its OT Cybersecurity Platform delivers actionable insights to tackle emerging challenges and Dragos claims they are and enriched vulnerability analysis with “now, next, never” guidance that lets you manage the full lifecycle of vulnerabilities in an environment.[3]
Dragos’ last equity raise was a $74 million Series D extension led by WestCap in September 2023, following its initial $200 million Series D round in October 2021, to bring the total amount raised to $274 million. The funding was reportedly used to support additional go-to-market initiatives to meet the growing demand of the cybersecurity industry. As of September 2023, Dragos has around 400 organizations and governments within its customer base. [4]
Malwarebytes
Another MicroVentures portfolio company is Malwarebytes, a cybersecurity company that has developed tools to remove malware and protect customer’s devices from cyber-attacks. Malwarebytes provides consumers and organizations with device protection, privacy, and prevention through effective, intuitive, and inclusive solutions in the home, on-the-go, at work, or on campus.[5]. This strategic investment allowed Malwarebytes to use the funds to expand product portfolios, accelerate momentum with channel partners, and grow its managed service provider business.[6] Malwarebytes has over 60,000 enterprise clients as of September 2020.[7]
HackerOne
HackerOne is a global leader in human-powered security by leveraging human ingenuity to find the most critical security flaws and outmatch cybercriminals. Its platform combines human intelligence and AI to reduce threat exposure at all stages of the software development lifecycle. HackerOne is also known for its bug bounty program, utilizing ethical hackers to find vulnerabilities within security systems.[8]
The round was led by GP Bullhound, with participation from investors like Benchmark, NEA, Dragoneer Investment Group, and Valor Equity Partners.[9] HackerOne has over 1,300 global customers as of January 2025.[10]
Prove Identity
Another example of an innovator in cybersecurity is Prove Identity. This company is one of the fastest-growing tech companies in North America, is used by over 1,000 businesses, and claims to be the world’s most accurate identity and verification platform.[11] Its network helps companies accelerate revenue, mitigate fraud, and deliver a frictionless customer experience.
Prove’s most recent funding round was in October 2023 where it raised $40 million led by MassMutual Ventures and Capital One Ventures. This new funding reinforced the company’s position as the global leader in the digital verification and authentication market and was used to expand globally and address evolving threats faced by all public and private institutions in the digital economy.[12] As of January 2025, Prove is trusted by over 1,000 leading companies.[13]
ID.me
ID.me is a digital identity network that simplifies how individuals securely prove their identity online. The company operates within the cybersecurity industry to help individuals and businesses make group affiliation verification easier and more secure. It started with the military community but quickly grew to include students, teachers, nurses, first responders, and government employees.[14]
ID.me’s last equity raise was a $132 million Series D round in April 2023, bringing its total amount raised to more than $240 million. The round was led by Viking Global Investors with participation from CapitalG, Morgan Stanley Counterpoint, FTV Capital, PSP Growth, Auctus Investment Group, Moonshots Capital, and Scout Ventures. As of August 2024, ID.me has enrolled 130 million members into its digital wallet.[16]
Challenges and Opportunities
While the cybersecurity industry has developed quickly over the last 20-25 years, the industry still faces an evolving threat landscape with advanced attacks like AI-driven malware, ransomware, and supply chain vulnerabilities. In addition to that, there are also concerns over talent shortages, overwhelmed teams, and the complexity of securing hybrid and multi-cloud environments. Navigating stricter regulations and maintaining awareness across organizations can create challenges and issues as well.
Opportunities
However, there are also many opportunities within the industry. For example, AI and automation may offer opportunities to enhance threat detection and reduce the workloads of developers and engineers. In addition, there are many growing sectors like Internet of Things (IoT), OT, and blockchain that can provide new avenues for security solutions. Finally, remote work and the rise of managed security services also could create a strong demand for advanced, accessible protections.
Final Thoughts
The cybersecurity industry is developing rapidly to address the cyber threats and attacks that companies are receiving regularly due to the digital world we live in today. Companies such as Dragos, Malwarebytes, HackerOne, Prove Identity, and ID.me are contributing to the industry in many ways. As cyber threats continue to increase, the cybersecurity industry’s ability to innovate and curate new antiviral solutions could be important to help keep businesses and even individuals safe from the threat of cyber-attacks.
Want to learn more about key industries to keep an eye on? Check out the following MicroVentures blogs to learn more:
- Beyond the Battlefield: Defense Technology
- The AI Wave: The History & Growth of the Semiconductor Industry
- The Final Frontier: The History and Growth of Space
- From Factories to Frontiers: The Future of Robotics and Automation
Are you ready to invest in private companies? Sign up for a MicroVentures account to start investing!
[1] https://www.forbes.com/councils/forbesbusinesscouncil/2023/08/14/the-evolution-of-cybersecurity-and-how-businesses-can-prepare-for-the-future/
[2] https://www.dragos.com/about/
[3] https://www.dragos.com/cybersecurity-platform/
[4] https://www.dragos.com/resources/press-release/dragos-raises-74m-in-series-d-round-extension-funding/
[5] https://www.malwarebytes.com/company
[6] https://www.securityweek.com/malwarebytes-raises-100-million-vector-capital/
[7] https://www.prnewswire.com/news-releases/malwarebytes-reports-record-growth-in-annual-recurring-revenue-expanding-customer-focused-product-portfolio-in-2020-fiscal-year-301093529.html
[8] https://www.hackerone.com/company
[9] https://techcrunch.com/2022/01/27/hackerone-series-e/
[10] https://www.hackerone.com/
[11] https://www.prove.com/about
[12] https://www.prove.com/blog/prove-identity-secures-40-million-in-funding-led-by-massmutual-ventures-and-capital-one-ventures
[15] https://www.finsmes.com/2023/04/id-me-raises-132m-in-series-d-funding.html
[16] https://www.prnewswire.com/news-releases/more-than-60-million-americans-enrolled-with-idme-to-safely-verify-their-identity-online-302221204.html
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