In today’s cybercrime-ridden world, it’s rare to skim the headlines without seeing one about the latest company or government agency that has fallen victim to a cyber attack. From Ashley Madison to the U.S. Office of Personnel Management, the numbers of data breaches continue to gain traction.
In the wake of the exploding cybersecurity industry, select digital security-focused ecosystems have developed around the world. According to Entrepreneur, these areas have transformed into epicenters for cybersecurity, including the companies, venture capitalists and expertise fueling the burgeoning market dedicated to fighting cybercrime.
Silicon Valley
Considered to be the mecca for startups and emerging technology, Silicon Valley has also seen a great deal of investments being pushed into the cybersecurity sector in recent years. With the area’s dominance in the tech industry, it’s a natural place for cybersecurity startups to pop up, Entrepreneur reported.
Researcher CB Insights found that the first half of 2015 saw investors putting $1.2 billion into cybersecurity startups, which is a drastic increase from 2013’s first half, when $771 million was invested in the cybersecurity-related companies.
Israel
The country’s growing startup scene, severe security threats and increasing talent flow from military-intelligence units all combine to make Israel a potential global cybersecurity power player.
“There is a governmental focus on making Israel a cyber leader, and the prime minister is very involved. I’m optimistic that Israel can become one of the top two cybersecurity hubs in the world,” Nadav Zafrir, founder of team8, a VC firm in Tel Aviv focused on investing in cybersecurity companies, told Entrepreneur.
Earlier this year PayPal closed the deal on its acquisition of Israeli predictive-security startup CyActive, forming the core of its new security center in Israel. Unlike its Fraud and Risk Detection Center in Tel Aviv, the new site, in Beersheva, will focus on predictive threat prevention and detection, which is CyActive’s forte.
New York City
The Big Apple is already considered a mecca for the financial industry and with so many businesses of great wealth located in one place, the demand for cybersecurity services is undeniable. Cybersecurity companies have been popping up all over the city, many focused on keeping bank and financial fraud at bay. According to Entrepreneur, the city has seen an uptick in data-security activity and an increase in the amount of investments being moved toward cybersecurity initiatives.
One of the top startups in the area is identity-verification company Socure, which developed a tool to help businesses to mitigate fraud risks by mining the “social biometrics” of individuals.
Boston
The city’s abundance of talent — which comes as no surprise, considering it is home to both MIT and Harvard — has helped develop it into a cybersecurity hub.
Leading cybersecurity firms that call Boston home include Raytheon and Rapid7. Earlier this year Rapid7 confirmed plans to go public when it filed papers with the U.S. Securities and Exchange Commission last week. The company will seek to raise $80 million in its IPO, according to the filing.
Newcomers like BitSight Technologies and Barkly are also making their presence known in Bean Town, with the startups recently securing $23 million and $12.5 million in funding respectively, Entrepreneur confirmed.
London
London may be the closet thing to Europe’s answer to Silicon Valley. The U.K. government has made headlines recently for its aggressive stance on tackling cybercrime through a growing number of initiatives and programs.
In June, IT security firm Sophos revealed the pricing of its initial public offering, bringing the total valuation of the company to £1 billion and marking one of the largest flotations by a technology company in the U.K. The Oxfordshire-based company produces antivirus software, firewall hardware and other security products.
For more on the digital identity ecosystem, click here to take a look at our Identity Tracker, which helps identify the issues and trends that arise around the digital identity ecosystem.
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