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hsmith@firstanalysis.com
lmoran@firstanalysis.com
- We present our key takeaways from the 2024 RSA cybersecurity conference and recent industry conversations.
- In recent years, several factors have heightened concern about the fate of best-of-breed cybersecurity solutions. However, we see evidence that robust demand for both best-of-breed solutions and single-vendor platform solutions will persist for the foreseeable future.
- The pace of cybersecurity M&A and financing remains incredibly robust, but we feel it is increasingly important to pursue capital strategies that align constituents around probable exit valuations rather than strategies premised on improbable unicorn valuations.
- AI in cybersecurity was an even hotter topic at RSA in 2024 than in 2023. We see most cybersecurity companies adding AI capabilities to their existing solutions, but we are seeing more cybersecurity companies built from the ground up with AI engines at their core.
- Looking at specific cybersecurity subsectors, data security stood out as seeing substantial innovation and winning much attention. Several factors appear to be driving this increased focus on data security.
TABLE OF CONTENTS
Strong attendance suggests cybersecurity remains among the most active tech areas
Best-of-breed vs. platform debate continues, but both do well
Deal activity hype remains strong, yet unicorn valuation exits unlikely
AI even more prominent, but levels of use vary widely
Highly competitive data-security subsector garners meaningful attention and excitement
Challenge of finding security professionals gets less air time
Still an exceptionally fertile market
Cybersecurity index: Strong one-year gain, but lost pace after January
Cybersecurity M&A: Notable transactions include Darktrace, Venafi, and Noname Security
Cybersecurity private placements: Notable transactions include Cyberhaven and ThreatLocker
Strong attendance suggests cybersecurity remains among the most active tech areas
While artificial intelligence (AI) has become the most topical area in tech over recent years, strong attendance at 2024's RSA conference suggests cybersecurity remains among the most active tech ecosystems. This year, the buzz on the floor and at surrounding hotels and venues struck us as markedly greater than at the past two RSA conferences since the event resumed convening in person in 2022. The 2024 conference attracted over 41,000 attendees, over 650 speakers, and over 600 exhibitors, ranging from startups to large publicly traded companies. Conference attendance was up from the past few years and near 2017's record 43,000 attendees. From presentations, meetings and discussions, it was evident that startup financing and merger and acquisition activity continue at a strong pace, indicating that despite the industry's growing scale, opportunities for companies at all stages remain significant.