Fire Eye, Sentinel One, Crowdstrike, HackerOne, Cylance, Cyphort, Trustlook, Venafi, Clavister, Invincea, Code42, just to name a few, are so called NG Cybersecurity startups.
NG comes from “New Generation” or “Next Generation”… (Yeah, just like in StarTrek. 🙂 )
What exactly are these “NG” products and services?
There is no single definition that fits them all. Here are the common features:
- All of them have a cloud backend.
- Some install an agent on each machine, some install an appliance that acts as a sniffer in the network. Some others must be installed on the default gateway where they take control of the more important entry and exit points in the network.
- All of them analyze events in the network and send them in a form or another for analysis to the backend
- Some filter just DNS traffic, some filter just web traffic, some filter everything
- Combinations of above are definitely the case.
- None of them is installing a classical AV engine to end customers (GW or End-point)
- My guess (not able to prove it, though) is that they have a form of classical antivirus in the backend which is used as a “second” opinion scanner.
The list can be enlarged… it is by no means complete…
More questions instead of a Conclusion
So, why aren’t they self-sustained and keep raising money? Almost every month I hear that another NG security company has raised funds: A, B, C or they have been acquired.
I mean, if they’re doing fine, why to do they raise more funds?
First thing which is quite obvious: they spend more money than they make.
But, why? Are they bad at managing money?
I don’t know that… maybe they invest a lot in research… Maybe too much?
Or is this just a big hype and not enough businesses are paying for their products?
Probably the truth is somewhere in the middle.
Here is something interesting:
Venture capital firms invested heavily in next generation security products and services. 2015 was a record year for fundraising with an estimated $2.3 billion-$3.3 billion invested, in comparison to 2014’s fundraising total of $2.5 billion.. 2015’s fundraising total was more than 4x that of 2010.
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