Security is one of the hottest areas in tech right now. Indeed, there is infinite possibility in this space because technology inherently has weaknesses and malicious actors seem to always be a step ahead of users and software companies. I see many funding announcements and lately the amount of money flowing into security seems to be setting us up for a bubble burst at some point in the next half-decade or so.
I won’t point out any specific companies because I do not think it is fair to single them out. And I certainly can’t list all the companies which have been funded.
The opportunity in this market isn’t the issue, it’s just difficult to understand how so many new players will be able to carve out niches for themselves which will allow them to boost sales to the point that they justify the lofty valuations commensurate with the currently perceived opportunity.
Say that ten times fast.
If I am wrong, all the better. I hope I am.
I just caution VCs and other security investors to understand how the companies they are investing in will be able to differentiate themselves in a more crowded space.
Although the need to boost security isn’t going away, budgeting may take some time to catch up to a point where all these new players will be able to hit their sales objectives.