the third annual Cyber Investing Summit
In his keynote address at yesterday's Cyber Investing Summit, Dave DeWalt (Momentum Cyber co-founder and AllegisCyber managing director) set the terms of discussion by drawing out the history of what he called the "perfect cyber storm." He traced that history since 2000, noting that twenty-nine countries now have declared offensive cyber capabilities. Sixty-four, he said, have declared defensive capabilities, and these sixty-four at least probably also have unavowed offensive capabilities.
As the storm has grown, so too has the cybersecurity market. Worth $3.2 billion in 2000, this year it's reached some $96.3 billion. DeWalt sees the biggest opportunities in that market where there are the biggest gaps: "drones and domes" (the drone economy and the security infrastructure it will necessarily require), "industrial and IoT" (increasingly pervasive), "social and satellite" (with just a handful of company's specializing in social media security, and satellites assuming an increasingly bigger share of communications infrastructure), and "cloud and crypto" (especially with respect to identity management and advanced cryptography).
Companies in this space must, DeWalt emphasized, know their go-to-market window (always narrower and more fleeting than they assume). He advised investors to "look for management teams who can figure out go-to-market."
Other speakers took these themes up throughout the day. We'll have more extensive coverage tomorrow and Friday. For now we'll mention that the Cybersecurity 500 list was released at the Summit. And a quick take on what some VCs thought were the investing hotspots. Data science is hot. Endpoint protection and threat intelligence have cooled off: those particular windows may be starting to close.