2021 Annual
Information Security Report
January 31, 2022
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VCs make concentrated bets on cloud and identity security in 2021
Cyberattacks and breaches are on the rise, demonstrating how legacy information security vendors have not sufficiently evolved to address the vulnerabilities of software supply chains and cloud environments.
Our 2021 Annual Information Security Report deep dives into the sector's investment activity and adoption trends, comprehensively assessing emerging opportunities across market segments—led by endpoint security, network security, and identity & access management.
Key takeaways
This report was updated on February 3, 2022, to reflect a data adjustment on page 40.
Table of contents
VCs make concentrated bets on cloud and identity security in 2021
Cyberattacks and breaches are on the rise, demonstrating how legacy information security vendors have not sufficiently evolved to address the vulnerabilities of software supply chains and cloud environments.
Our 2021 Annual Information Security Report deep dives into the sector's investment activity and adoption trends, comprehensively assessing emerging opportunities across market segments—led by endpoint security, network security, and identity & access management.
Key takeaways
- Given the limitations faced by incumbents, infosec startups are capitalizing on emerging spaces such as cloud vulnerability scanning, fraud prevention, and passwordless authentication.
- On the investment side of the equation, VCs invested $25.6 billion across 938 deals in infosec startups in 2021, a deal value increase of nearly 130% year-over-year.
This report was updated on February 3, 2022, to reflect a data adjustment on page 40.
Table of contents
| Vertical overview | 3 |
| 2021 timeline | 6 |
| Infosec VC ecosystem market map | 7 |
| VC activity | 9 |
| Segment overview | 10 |
| Network security | 11 |
| Endpoint security | 20 |
| Identity & access management | 29 |
| Application security | 38 |
| Security operations | 47 |
| Data security | 55 |
| Appendix | 63 |