Corporate budgets for IT security grew by 6% from 2022 to 2023, with “increased risk” and “digital transformation” cited as the main reasons behind the budget increases.
After a challenging summer, venture capital (VC) funding for cybersecurity startups increased by a modest 12% in Q3, reaching nearly $1.9 billion, up from $1.7 billion in the previous quarter. This reflects a positive shift. However, it’s essential to note that funding remains down by 30% compared to the previous year, indicating a cautious resurgence of interest in the cybersecurity sector.
One potential driver of this increased funding is the growing budgets that enterprises are allocating to cybersecurity. According to an IANS Research report, corporate IT security budgets expanded by 6% from 2022 to 2023, demonstrating a modest yet noteworthy increase. The primary motivators behind this budget growth include “increased risk” and the ongoing process of “digital transformation,” which involves digitizing legacy applications, products, and services.
One notable beneficiary of this funding trend is Censys, a company that specializes in providing insights into critical internet-connected infrastructure. Censys recently announced that it raised $50 million in a Series C funding round, along with an additional $25 million in debt financing, bringing their total funding to $128.1 million. Decibel Partners led the funding round, with GV, Greylock, Intel Capital, Ascension Ventures, Four Rivers Partners V, L.P., and accounts managed by Hamilton Lane participating.
Censys traces its origins to an internet scanning program called ZMap, which the company’s chief scientist, Zakir Durumeric, developed in 2013. Over the years, the company refined and improved ZMap’s capabilities to actively contribute to enhancing online security.
Furthermore, Censys now offers a range of tools for monitoring internet hosts and their security status. These tools provide customers with a database of vulnerable infrastructure enriched with context. They also offer a platform for monitoring and analyzing internet-facing assets such as servers and desktops. Customers primarily use the platform for threat hunting, investigating security compromises, and triaging exploits detected through Censys’ asset monitoring technology. Some also rely on Censys to assess the impact of their security efforts, measuring the duration and severity of risks.
Censys empowers leaders and their teams to stay ahead of advanced threat actors, using leading internet intelligence. Users can track performance over time using Censys’ benchmarks and generate industry-standard metrics.
Moreover, notably, Censys recently introduced a chatbot that enables users to perform searches across its security database using natural language. This feature enhances user interactions with the platform and simplifies complex queries.
Furthermore, Censys boasts over 350,000 users on its free service and more than 180 paying customers. These customers include government agencies like the FBI and the Department of Homeland Security. The company plans to allocate the recent funding toward expanding its workforce. The goal is to grow its 134-person team to 150 employees by the end of 2023.
Despite economic uncertainty, the demand for cybersecurity remains high. The pandemic’s impact forced major enterprises to shift to cloud solutions and transition thousands of employees to remote work setups. This transition led to increased demand and inquiries.
While cybersecurity funding faces headwinds, including challenges in Europe and U.S.-China relations, there is optimism in the industry. Many companies remain committed to increasing their IT spending. They prioritize security measures, with cybersecurity included. In addition, IDC predicts that global cybersecurity spending will continue to grow. It is expected to exceed $219 billion in 2023 and approach $300 billion by 2026.
The cybersecurity sector continues to be dynamic. It presents both challenges and opportunities on the horizon, reflecting the evolving landscape of digital security.
