New cybersecurity startups founded in 2020 raise over $31 million in combined funding

The surge in demand for cybersecurity solutions is accelerating funding in the global cybersecurity market. Cybersecurity startups are riding the waves of millions of dollars investments pouring into the sector. According to a report from the Atlas VPN team, there are 78 new cybersecurity startups founded in 2020 that cumulatively have raised over $31.6 million in funding year-to-date.

The report further shows that only 15 percent of the 78 new cybersecurity startups launched in 2020 secured funding. However, three cybersecurity took the lion share of the investments of nearly 96% ($30.3 million) of the total amount of investments. The startup that scored the most significant investment is Beyond, an Israeli cybersecurity startup founded by CEO Assaf Rappaport, who is a former head of R&D at Microsoft Israel

Beyond secured a total of $21 million in February of 2020, which accounts for more than 66% of total investments into newly launched cybersecurity startups this year. Its backers include Sequoia Capital Israel and Cyberstars Venture Funds Ltd.

The second cybersecurity startup with the second biggest investment is Sevco Security, which raised over $6.7 million in May of 2020. Funds collected by Sevco Security constitute more than 21% of total investments into newly launched cybersecurity startups in 2020.

Sevco Security is a Texas-based company that provides cybersecurity services and products for cyber experts. Among Sevco Security investors is an early-stage venture capital firm 406 Ventures.

Also, in the list of top three cybersecurity startups in terms of funding is Soc.OS. It received more than $2.5 million in investments in July this year. Funding received by Soc.OS makes up 8% of total investments in this year’s cybersecurity startups.

Soc.OS is a startup from London, United Kingdom, which offers an alert correlation and triage automation tool designed to help internal security teams manage a growing number of alerts produced by threat protection and detection tools. Soc.OS investors include such early-stage venture capital firms as Speedinvest and Hoxton Ventures.

Most of this year’s cybersecurity companies are from North America or particularly the US. They make up almost 35% (27) of all the cybersecurity startups launched in 2020.

The US is followed by Europe, with nearly a quarter (19) cybersecurity startups coming from the region. Regardless of Brexit, nearly 37% (7) of cybersecurity startups founded in Europe this year are based in the UK.

Below are the major highlights of the report:

• In 2020, the cybersecurity market has welcomed 78 startups that cumulatively have raised over $31.6 million in funding year-to-date.
• Three companies alone collected nearly 96% ($30.3 million) of the total amount of investments.
• The startup that scored the most significant investment is Beyond, which secured a total of $21 million in February of 2020.
• A cybersecurity startup with the second biggest investment is Sevco Security, which raised over $6.7 million in May of 2020.
• Also, in the top three list is Soc.OS, which received more than $2.5 million in investments in July this year.
• The majority — 35% — of this year’s cybersecurity companies are from the US.
• While the amount of cyber incidents is increasing and cyberattacks are becoming more sophisticated, the number of new cybersecurity startups is declining each year.

The full report covers additional statistics on the number of cybersecurity startups launched and funding raised from 2015 to 2020. To see the full report, please click here.