California is home to over 30% of US cybersecurity companies, with 6 CA-based cybersecurity companies raising over $200M to date.
The United States is home to approximately 63% of the world’s privately-owned cybersecurity companies. Of those, the lion’s share (33%) are based in California. However, several other US states are also notable for their share of the nation’s cybersecurity startups.
In fact, 8 other US states are home to at least 3% of the country’s cybersecurity startups. These are (in descending order): Virginia, Massachusetts, New York, Texas, Maryland, Florida, Colorado, and Washington. Together, these states comprise our list of 9 “cyber-states” in the US.
While there are still notable cybersecurity companies with headquarters elsewhere in the US, no other US state is home to more than 3% of America’s investor-backed cybersecurity startups.
Using CB Insights data, we mapped the most well-funded cybersecurity companies based in each of the 9 cyber-states listed above. We also rounded up a list of all the cybersecurity startups across all 50 states that have raised $100M+ as of 9/25/2017.
We define cybersecurity startups as tech-enabled companies that offer products and services for which the primary use case is the protection of digital and/or physical assets from unauthorized access and malicious use by cyber criminals.
Check out the infographic below for a complete view of top the cybersecurity companies in each cyber-state and their total disclosed funding.
Top “cyber-state” companies
The most well-funded privately-owned cybersecurity company in the US is the California-based endpoint protection company Tanium, with $395M in total disclosed funding (as of 9/26/17).
Following Tanium is Maryland’s continuous network monitoring company Tenable Network Security with $302M raised to date, and then California-based smart phone security company Lookout, with $281M. Tanium and Lookout are among the eight cybersecurity unicorns around the world currently valued at $1B+.
Each state shown above has a funding threshold that we used to help determine the most well-funded cybersecurity companies in that state. For example, there are over 25 cybersecurity companies in California that have raised $100M+, but only the 6 shown above have raised $200M+.
Similarly, in active cyber-states such as Virginia, and Massachusetts, there are a plethora of companies that have raised over $20M, but only a handful in each of those states have raised $50M+. For other cyber-states such as New York, Florida, and Washington, the threshold for most well-funded is lower.
Interestingly, Texas, Maryland, and Colorado have a relatively lower concentration of cybersecurity startups among the featured states, but showcase a significant number of cybersecurity startups with total disclosed funding at $50M+.
cybersecurity startups with $100M+
Beyond the scope of the 9 cyber-states featured on our map, there are several US-based cybersecurity companies that have each raised over $100M in disclosed funding.
Notable companies that are not featured in the map above include Arizona’s BeyondTrust ($195M in total disclosed funding), Minnesota’s Code42Software ($138M), and three companies in Georgia: Pindrop Security ($134M), Ionic Security ($123M), and the company Core Security ($231), which recently agreed to merge with SecureAuth. The combined entity has raised north of $200M from private equity investors.
There are 36 US-based private cybersecurity companies that have raised $100M+ in total disclosed funding to date. See the full list below.
As of 9/25/2017.
|Company||Total Disclosed Funding ($M)||Location||Select Investors|
|Tanium||$ 395||California||Andreessen Horowitz, Executive Press, Franklin Templeton Investments|
|Tenable Network Security||$ 302||Maryland||Accel Partners, Insight Venture Partners, Maryland Department of Business & Economic Development|
|Lookout||$ 281||California||Accel Partners, Andreessen Horowitz, Bezos Expeditions|
|Illumio||$ 267||California||8VC, Accel Partners, Andreessen Horowitz|
|CrowdStrike||$ 256||California||Accel Partners, capitalG, March Capital Partners|
|Sumo Logic||$ 236||California||Accel Partners, DFJ Growth Fund, Greylock Partners|
|OpenPeak (recently bankrupt)||$ 233||Florida||AT&T, Blackstone Group, Castletop Capital|
|Netskope||$ 221||California||Accel Partners, Dell Technologies Capital, Geodesic Capital|
|Druva||$ 198||California||Accord International, Blue Cloud Ventures, Dell Technologies Capital|
|BeyondTrust||$ 195||Arizona||Blue Cloud Ventures, Fifth Street Finance, Veritas Capital|
|Carbon Black (Bit9)||$ 191||Massachusetts||.406 Ventures, Accomplice, Blackstone Group|
|Cybereason||$ 189||Massachusetts||CRV, Lockheed Martin, SoftBank Group|
|CloudFlare||$ 182||California||Baidu, capitalG, Fidelity Investments|
|StackPath||$ 180||Texas||ABRY Partners|
|Cylance||$ 177||California||Blackstone Group, Capital One Growth Ventures, Citi Ventures|
|LogicMonitor||$ 152||California||e.ventures, Providence Equity Partners, Undisclosed Investors|
|Zscaler||$ 148||California||capitalG, EMC Ventures, Lightspeed Venture Partners|
|Armor Defense||$ 148||Texas||Croghan Investments, Doug Ducey, Patrick Sullivan|
|Skybox Security||$ 145||California||Benchmark, Carmel Ventures, Glynn Capital Management|
|Ping Identity||$ 140||Colorado||Appian Ventures, Berkus Technology Ventures, DFJ Growth Fund|
|Code42 Software||$ 138||Minnesota||Accel Partners, JMI Equity, New Enterprise Associates|
|Pindrop Security||$ 134||Georgia||Andreessen Horowitz, Atlanta Technology Angels, Benjamin Ling|
|ForeScout Technologies||$ 127||California||Accel Partners, Amadeus Capital Partners, Aspect Ventures|
|LogRhythm||$ 126||Colorado||Access Venture Partners, Adams Street Partners, Colorado Fund|
|Ionic Security||$ 123||Georgia||Amazon, ff Venture Capital, Flashpoint|
|Alert Logic||$ 118||Texas||Access Venture Partners, Covera Ventures, DH Capital|
|AlienVault||$ 116||California||Adara Venture Partners, Correlation Ventures, GGV Capital|
|Bromium||$ 116||California||Andreessen Horowitz, Highland Capital Partners, Ignition Partners|
|Digital Guardian||$ 113||Massachusetts||Brookline Venture Partners, Commonwealth of Massachusetts, Fairhaven Capital|
|SentinelOne||$ 110||California||Accel Partners, Andy Bechtolsheim, Data Collective|
|Webroot||$ 108||Colorado||Accel Partners, Mayfield Fund, Technology Crossover Ventures|
|Skyhigh Networks||$ 107||California||Greylock Partners, InstantScale Ventures, Salesforce Ventures|
|Signifyd||$ 106||California||Allegis Capital, American Express Ventures, Andreessen Horowitz|
|Shape Security||$ 106||California||Allegis Capital, Baseline Ventures, EDBI|
|Lookingglass Cyber Solutions||$ 104||Virginia||Alsop-Louie Partners, Eastward Capital Partners, Emerging Technology Center|
|HyTrust||$ 104||California||Advance Venture Partners, Cisco Investments, City National Bank|
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
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