In this month’s memo, we briefly recap public market performance that—despite tariff-driven volatility—ended the month roughly where it began, before diving into our main focus: Security.
We examine how Security has become one of the most urgent, resilient, and investable categories in technology, fueled by a surge in AI-powered threats, rising geopolitical tensions, and growing complexity across enterprise environments. We also discuss the forces that are reshaping the category today, and where we believe the next generation of enduring Security companies will be built.
Here’s a preview:
- Security is a top CIO priority: 87% of CIOs plan to increase spend in 2025, with the category on track to surpass $270B in global spend.
- The cost of failure is rising: Breaches like the recent Salt Typhoon and Coinbase hacks are driving nine-figure losses and greater scrutiny, elevating security to a board-level priority.
- AI is scaling threats: Cloud exploits and ransomware are up 75% YoY, while risks like data poisoning and model theft are slowing GenAI adoption and driving demand for new defense layers.
- Big Tech is buying: Google’s $32B acquisition of Wiz continues a wave of M&A in Security, as Big Tech players are now competing with established security incumbents to build integrated platforms and reduce vendor sprawl.
- Geopolitics are fueling spend: Cyberwarfare, digital infrastructure attacks, and fraying alliances are forcing countries to rethink their national defense strategies and elevate Cybersecurity as a key pillar modern defense
- Outcomes are getting larger: Public security companies now represent $500B+ in aggregate market cap, with two $100B+ companies; meanwhile, we have seen five consecutive years of $10B+ VC investment, underscoring the category’s scale and staying power.
We’re also excited to debut our brand new Cybersecurity Market Map and spotlight the trends and companies shaping the next era of enterprise Security.