By Chris Tribbey
The rise of the Internet of Things (IoT) will also resulting in the rise of cyber threats, and that means more venture funding in the world of cyber security, according to a new report.
Boston-based Lux Research estimates that venture capital investment in cyber security start-ups jumped nearly 80% to $228 million in 2015, and that number will hit $400 million this year, thanks to all the possible threats posed by things like connected cars and smart homes.
“Connected consumer and business products have begun flooding the market, but security has been an afterthought. The world now has to figure out how to secure the multitude of things that have recently become connected,” said Mark Bünger, Lux Research VP and lead author of the company report. “Unlike the hacking of credit card numbers and Hollywood feature films, these attacks have more dangerous consequences and threaten the integrity of critical infrastructure.”
The report finds that companies are just beginning to realize the new security weaknesses posed by connecting non-computer items to the internet. And that in turn is creating a new market in the cyber security space to address these problems.
The U.S. is leading the way in IoT security start-ups, accounting for nearly half. A third are in Israel. And altogether, 77 IoT start-ups have raised more than $808 million since 2000.
More than half of the start-ups plan on providing horizontal security platforms that will be capable of supporting multiple types of IoT devices and environments, with securing industrial control system networks a huge initiative for many. Device behavior analysis and network behavior analysis are big areas of focus, along with finding new methods for authentication and encryption in IoT.