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The Eight Traits Of Highly Successful Security Startups

Best new companies are those that are willing to take a chance, SINET study says

WASHINGTON, D.C. -- Security Innovation Network Showcase 2011 -- The most successful new security companies are those that are young, innovative, and willing to bet big on outside funding, according to research revealed here Wednesday.

The Security Innovation Network (SINET), an organization focused on the advancement of security innovation, this week held its showcase of 16 emerging companies that are breaking new ground in security.

As part of the event, SINET revealed the results of its study that shows how the 16 winning innovators differed from the other nearly 200 emerging companies that applied to be in the showcase.

"This year’s SINET 16 Innovators are younger, more focused on growth than profitability, and more willing to bet big by taking outside investments than the larger pool of applicants," SINET says.

Half of the SINET 16 have raised more than $15 million in funding, compared to 22 percent of the other applicants. Most of the winners are relatively young, and 57 percent have revenues of more than $2.6 million annually.

The winning companies are innovative, averaging 4.1 patents submitted, and geographically concentrated -- more than 80 percent are located in northern California or the Washington, D.C., area. In general, the top security innovators were focused on four categories of security:

1. Mobile: securing mobile devices, mobile apps and data in transit

2. Cloud: addressing new cloud security and compliance risks, particularly identity management, trust, and privacy

3. Security intelligence, e.g., Big Data -- sophisticated, real-time, behavioral analysis

* Social and gaming: securing the "next generation" of online applications

Have a comment on this story? Please click "Comment" below. If you'd like to contact Dark Reading's editors directly, send us a message. Tim Wilson is Editor in Chief and co-founder of Dark Reading.com, UBM Tech's online community for information security professionals. He is responsible for managing the site, assigning and editing content, and writing breaking news stories. Wilson has been recognized as one ... View Full Bio

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