Staking Security: Here Are The 9 Most Active VCs In Cybersecurity

Which VCs Are Investing The Most?

Despite a slowdown in the flow of venture capital funding into cybersecurity, the space remains one of the hottest areas for investment in the technology sector. According to CB Insights, the market is on track to funnel more than $3 billion into the sector by the end of the year, which is less than last year but still represents a significant amount of investment into the space. This year has seen particular investment attention in endpoint security, cloud security, deception technology and the Internet of Things.

Here are the nine companies, broken down by CB Insights, that are leading the charge when it comes to bringing those technologies to bear through venture capital funding.

9. Trident Capital

Trident Capital, based in San Mateo, Calif., has a division focused exclusively on cybersecurity investments. That focus has helped the company drive Series A and B investments in cybersecurity startups in the IoT, next-generation identity, behavioral analytics, privacy, and secure payments and fraud industries.

Some of the company's current investments include AlienVault, HyTrust, Mocana, Bayshore, IronNet Cybersecurity, Mojo Networks, Prolexic, Solera Networks, Surela, and Voltage Security. The company has also reaped success with past investments, including Qualys' IPO in 2012 and startup acquisitions by Blue Coat, Symantec and VeriSign.

8. Bessemer Venture Partners

Bessemer Venture Partners has a long history of investing in cybersecurity startups, including more than 30 investments that led to more than six IPOs and multiple acquisitions. Bessemer says that legacy is a "key advantage" for its investments.

The company currently holds investments in startups in some of the hottest emerging areas of security technology, including the Internet of Things, cloud security, critical infrastructure security and threat intelligence. Some of its investments include Bastille Networks, CloudLock, Defense.net, Distil Networks, Endgame, Illusive Networks, Internet Identity, iSight Partners (acquired by FireEye), Mojave Networks, ThreatTrack and Virtu.

7. Kleiner Perkins Caufield Byers

Kleiner Perkins Caufield & Byers (KPCB) focuses on early-stage investments in technologies it says will "impact the world." Its portfolio includes investments in some longer-standing security startups that have been gaining momentum in the market, including AlienVault and Carbon Black. It also holds investments in 41st Parameter, Area 1 Security, Trusona, Synack, CoreOS, Endgame, Ionic Security, IronNet Cybersecurity and Shape Security.

6. Sequoia Capital

Sequoia Capital's investments have led to an aggregate public market value of more than $1.4 trillion, the company says, including some of the security industry's biggest public companies like FireEye, Symantec and Barracuda Networks. It also holds investments in a "who's who" of privately-held security vendors, including Carbon Black, MobileIron, Okta and Skyhigh Networks. Those investments, and others, cover a broad range of the security market, including endpoint security, cloud security, advanced threat protection and identity and access management.

5. Norwest Venture Partners

Norwest Venture Partners sets itself apart by being what it calls a "patient investor," investing more than $6 billion of capital in companies from seed stage to late stage. Security is one of the company's investment priorities around its Cloud & IT investment sector, leading to investments in data security, behavioral analytics, advanced threat protection, mobile security, as well as other areas.

Some of Norwest's current investments include Agari Data, Bitglass, ClearDATA, Dtex Systems, Exabeam, FireEye, Fireglass, MobileIron, Morta Security, Palerra, Shape Security, and Seculert.

4. Andreessen Horowitz

One of the most recognizable names in venture capital, Andreessen Horowitz has a strong foothold of investments in the security industry. One of its most sizable investments is in red-hot security startup Tanium, in which Andreessen last fall led a round of $120 million in funding last fall at a valuation of $3.5 billion. Some of the firm's other investments include Bluebox, Bromium, CipherCloud, CoreOS, Illumio, Keybase, Lookout, Morta Security, Okta, SignalFX, Soha Systems and Sookasa.

3. Accel Partners

Accel Partners has been at the forefront of early-stage investments in some of the biggest companies in technology, including Facebook, Dropbox and Slack. In security that is no exception, with investments in some of the hottest up-and-coming startups in endpoint security, mobile security, cloud security, network security and more. Some of those investments include Aorato, Code42, CoreOS, CrowdStrike, Illumio, Krux Digital, Lookout, MobileSpaces, Netskope, Sookasa, Vectra, Tenable Network Security and SentinelOne.

2. Intel Capital

The venture capital arm of Intel, which has its own major security division in Intel Security, has invested over $11.7 billion in more than 1,445 companies since its inception, and leads the market when it comes to returns after portfolio exits. Intel Capital's security portfolio includes AlienVault, Bromium, CoreOS, ForeScout Technologies, Fortscale, HyTrust, Mocana, Vectra Networks, Prolexic, Solera Networks, TrapX Security, Prelert, Venafi and PerspecSys.

1. New Enterprise Associates

Leading the pack when it comes to cybersecurity investments is New Enterprise Associates (NEA), which has placed technology as one of its two investment priorities. For the cybersecurity space, that means investments in cloud security, deception technology, endpoint security, threat intelligence and more. Some of NEA's current investments include Barkly, Bitglass, CloudFlare, Code42, DataVisor, HackerOne, Illusive Networks, NetCitadel, Niara, Stormpath, Threat Quotient, Tigera, Veriflow, ZeroFOX and Aorato.