While there is certainly no shortage of cyberattacks, U.S. cybersecurity startups are struggling to thrive against more advanced hackers and larger companies that are releasing similar technology.
“I have never seen such a fast-growing market with so many companies on the losing side,” said David Cowan, a partner at Bessemer Venture Partners, as reported by Reuters.
Momentum Cyber, an advisory firm focused on mergers and acquisitions in the cyber industry, currently tracks 2,500 security companies, and estimates that 300 cybersecurity startups launch every year.
But only a small segment of those startups is seeing any success, leaving the majority with little chance of securing a good IPO price or being attractive enough for an acquisition.
