Cybersecurity industry produces 19 firms valued at $1bn in H1 2022 

BY MADUABUCHI EFEGADI

…upsurge in cyberattacks, remote work drive growth

The cybersecurity software industry has produced 19 companies valued at $1 billion in the first half of 2022, according to a new data.

The figures, though, reveal that the digital defence market began to flourish in early 2021.

The upsurge of cyberattacks on a global scale has created new addressable markets and opportunities for cybersecurity companies to tackle.

Also, global shifts towards remote work and online education were the main driving forces behind the market’s growth.

Global markets, including the technology sector, encountered significant declines in the first half of 2022 due to various macroeconomic challenges. Yet, the cybersecurity software industry continues to produce unicorns at an unprecedented rate.

Atlas VPN predicts that if the upward trend’s growth momentum is sustained for the rest of 2022, the total number of new unicorns is well-positioned to reach an all-time high, dwarfing 2021’s 36 unicorns. Atlas VPN, founded in 2019, is a secure freemium VPN service with a goal to make safe and open internet accessible for everyone.

The number of cybersecurity unicorns grew from six in 2020 to 36 in 2021, representing a 500 percent increase year-on-year (YoY).

Cybersecurity is today progressively an important issue to the global and African tech community. The number of cyberattacks and threats against individuals, businesses and governments has been on the increase. Google and the International Finance Corporation (IFC) said in a 2020 report that the internet economy has the potential to contribute close to $180 billion to Africa’s GDP by 2025.

Besides valuations, $1B+ cybersecurity exits also reached an all-time high of 18 in 2021, representing a 2x growth over 2020. In H1 2022, we have already witnessed eight $1B+ exits, and if the trend continues, the total for the year will be on par with 2021.