Bessemer Venture Partners announced its Cyber Index earlier this week. The index features 29 cybersecurity companies with market capitalizations ranging from $170 million to $15 billion (as of today's stock market prices).
The investors at Bessemer have been involved in starting or funding over 30 cybersecurity companies over the last two decades, including six IPOs and many more large acquisitions. Their deep experience in cyber enabled the firm to compile an invaluable list for other VCs, corporate investors, angels, startups seeking funding, and anyone interested in tracking the space.
The cybersecurity market is consolidating -- and the companies at or near the top of BVP's index are likely to be consolidators. They have the market caps to finance M&A activities around strategic moves into new cyber sectors. The companies at or near the bottom of the index are likely acquisition targets for large tech vendors looking to enter the cyber market or expand their footprints in the space.
“Thousands of amazing developers are flooding into cyber ventures, but most of these startups fail to deliver a differentiated message,” said Bessemer Vice President Sunil James, who led product and engineering teams at Google, Amazon Web Services, Mandiant, Arbor Networks, and iDefense, in BusinessWire.
“We’re looking for the rare breed of scalable developers who can combine their cyber operational backgrounds with scalable cloud-based resources to build products that detect and prevent targeted attacks on IT and industrial control networks with stealth and zero false positives” added James -- explaining what it means to be on the list.
BVP's Cyber Index provides the ticker symbol and daily stock price, market cap, EBITDA, revenue growth, gross margin, and other data for the 29 companies they follow, which are listed here alphabetically:
- Absolute Software
- AVG Technologies N.V. ADS
- Barracuda Networks Inc
- Check Point Software Technologies Ltd.
- CyberArk Software, Ltd.
- FireEye Inc.
- Fortinet Inc.
- Guidance Software
- Imperva Inc.
- Imprivata Inc.
- KEW Holding Corp.
- Mantech International Corp.
- NetQin Mobile Inc.
- Palo Alto Networks
- Radware Ltd.
- Splunk Inc.
- Symantec Corp.
- Trend Micro Inc.
- VASCO Data Security International Inc.
- VeriSign Inc.
- Six Corporation
Not every company on the list is a 'pure-play' cyber firm. Barracuda, Gemalto, LifeLock, Mantech, and VeriSign play in other markets, but they do have substantial cybersecurity businesses.
A Forbes post earlier this week lists the top 10 pure-play cybersecurity companies by market cap, which has Check Point at no. 1 -- and a market cap of more than $15 billion according to today's index.
The new cyber index can be downloaded to excel -- making it easy to sort by fastest growing, most profitable, and most valuable companies. Investors may want to use the template for plugging in other companies they track and lining them up to BVS' cyber 29.