60+ Cybersecurity Companies Securing The Future Of Digital Identity In One Market Map

Cybersecurity companies saw a record number of funding deals last year and on a quarterly basis Q1’17 was the most active quarter for deals to private cybersecurity companies over the last five years. One increasingly hot area within the cybersecurity industry is Identity Management. In fact, in line with the overall industry, cybersecurity startups with a core product or service in Identity Management secured more funding deals in Q1’17 than any quarter since 2012.

As the number and severity of cyber attacks continues to rise, the need to secure and authenticate data associated with identity is paramount. Likewise, companies are offering a range of products and services in Identity Management aimed at targeting fraudsters, managing login credentials, authenticating users’ devices, and more.

We used CB Insights data to identify over 60 leading private companies in Identity Management and categorized them into the five main categories in which they operate.

We define the Identity Management space as cybersecurity companies that have a core product or service that determines a user’s identity by authenticating their credentials, and authorizes users for appropriate access to digital resources. Some of the companies on our Identity Management market map also offer products for other areas of cybersecurity.

Q1’17 sets record for deals to Identity Management companies

Cybersecurity startups in Identity Management secured over 30 funding deals in Q1’17, the most deals to these companies on a quarterly basis since at least 2012. In terms of dollars raised in Q1’17, Identity Management companies secured the third highest quarterly funding total over the last five years.

The top three deals in Identity Management in Q1’17 went to Verisys ($73M Growth Equity), Bitglass ($45M Series C), and Transmit Security ($40M Angel).

Market map

Click on the image below to enlarge. Not all of the categories in our map are mutually exclusive. This market map is not meant to be exhaustive of companies in the space.

Category Breakdown

Anti Fraud Solutions: Startups in this category help secure online transactions by identifying fraudsters. For example, the company FeedZai utilizes machine learning algorithms to proactively detect fraud in financial transactions. Similarly, companies like Socure can detect fraudulent users on websites and in mobile applications also using machine-learning algorithms. Notably, over half (52%) of the companies in this category utilize a form of machine learning to fight fraud. Other types of companies in this category include GreatHorn, which helps secure cloud-based communication systems by detecting and stopping spearphishing attacks that rely on an attacker falsifying his or her identity to acquire a user’s personal data. Startups like Elliptic can trace a fraudster’s transaction activities through the blockchain to give law enforcement agencies and financial institutions the ability to investigate and evaluate suspicious activity in cryptocurrencies such as bitcoin.

Credentials Management: Startups such as Dashlane provide a secure digital wallet to allow users to manage passwords, credit cards, IDs, and other information related to identity. Similarly, companies like ID.me offer an identity gateway that allows individuals to tie their legal identity to a digital login that is accepted across multiple websites, eliminating the need to create a new login or to verify identity at each site individually. Others include Seklarity, which provides organizations visibility into the state of credentials in their network. Startups like Secret Double Octopus offer a range of cybersecurity products related to identity and credentials management that include multi-factor authentication, such as using the combination of a user’s cellphone, computer, and login credentials to verify identity.

Mobile / Device Authentication: Startups including Duo Security can help organizations check the security health of a user’s mobile phone and devices and block access to a network by devices that are identified as risky. Others include MedCrypt, which enables healthcare organizations to manage all of the digital keys needed for users to appropriately access medical devices.

Privileged Access Management: Companies like Pythian offer a privileged session management solution to secure access to enterprise systems, cloud infrastructures, databases, servers, and applications by enabling users to monitor and record in real-time all privileged activity performed across an IT infrastructure. Other companies include Avecto, which specializes in network endpoint security and offers a product for managing user account privileges.

IDaaS: These companies are all primarily cloud-based offerings through a software-as-a-service model, and they specialize in identity, such as: provisioning of user credentials for login, authentication of users, single-sign-on portals, and more. Ping Identity offers an IDaaS solution that enables organizations to deliver secure cloud single sign-on (SSO) and multi-factor authentication for users with just one username and password. Companies such as Auth0 enable developers and IT staff to easily and securely set up social and enterprise identity provider registration and login, username and password, SSO, multi-factor authentication, password-free authentication, and more.

See the full company list below:

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