1. Investing in Cybersecurity : 2020 outlook
Abhijit Solanki
Oct 21, 2019
Global Ventures Summit – Guadalajara, Mexico

2. WHY SHOULD MEXICO CARE?
© 2019 Whiteboard Venture Partners

3. Mexico, the 8th most targeted country by
ransomware hackers
Source: WWW, WBVP analysis © 2019 Whiteboard Venture Partners

4. HOW DOES THIS WORK?
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5. 4300 companies chasing $124B globally, Security
Services >50% of overall spend
Source: WWW, Momentum Cyber, Gartner, WBVP analysis © 2019 Whiteboard Venture Partners

6. Private Capital investment in cybersecurity
hitting all time highs
*through Aug 2019, based on Momentum Cyber Research
**through Oct 2019, based on Crunchbase Data
Source: WWW, Momentum Cyber, Crunchbase, WBVP analysis
0
1
2
3
4
5
6
7
2016 2017 2018 2019*
4.5
5.1
6.4
5.8
# of deals 278 326 400 290
Early & Growth stage capital investments into
cybersecurity startups growing ~19% YoY…
…with a growing number of them raising
>$100M in overall funding
0
5
10
15
20
25
2016 2017 2018 2019**
3
5
9
22
© 2019 Whiteboard Venture Partners

7. However, exit activity does not reflect that
growth due to several reasons
*through Aug 2019, based on Momentum Cyber Research
Source: WWW, Momentum Cyber, Crunchbase, WBVP analysis
0
5
10
15
20
25
2016 2017 2018 2019*
21 20.6
16.1
19.8
# of deals 158 178 184 113
M&A deal volume has increased but 80% of
the exits <$250M…
…due to several contributing factors
• Industry consolidation at the high end has
reduced the number of >$250M acquirers
• Scaling a cybersecurity startup to a good exit
(even IPO?) is a costly exercise
• Very high Marketing & Sales costs
• Most startups fail to make the transition from
building a security feature to a security
platform
• Many cybersecurity startups miss out on
making inroads at large buyers (ex: auto OEMs)
© 2019 Whiteboard Venture Partners

8. WHAT CAN MEXICO DO?
© 2019 Whiteboard Venture Partners

9. Cybersecurity startup footprint growing globally
0
20
40
60
80
100
120
Q1 Q2 Q3
86
94
115
*cybersecurity startup founding data based on AngelList (20 Oct, 2019)
Source: WWW, AngelList, WBVP analysis
56%
44%
USA ROW
Startups targeting to solve cybersecurity
challenges growing at 16% QoQ*…
…with a large share of them based outside of
USA
Oct 2019*
How many cybersecurity startups are based in Mexico?
© 2019 Whiteboard Venture Partners

10. 2020’s should be an interesting time for
cybersecurity entrepreneurs in Mexico
…9* cybersecurity startups call Mexico home
• Leader in the LatAm market
• Vs. 1000* cyber startups founded in USA
9 9
5
3
0
1
2
3
4
5
6
7
8
9
10
Mexico Brazil Argentina Chile
*cybersecurity startup founding data based on AngelList (20 Oct, 2019)
Source: WWW, AngelList, WBVP analysis
Mexico has the support of the international ecosystem,
launched the first cybersecurity hub in Latin America in
partnership with IBM, Cisco, Deloitte, Thales…
© 2019 Whiteboard Venture Partners

11. But they will need more support from the local
ecosystem players
Source: WWW, ITU, WBVP analysis
2 areas of improvement for Mexico identified
by ITU in their 2017 Global Security Index
were
• Home-grown cybersecurity
• Public-Private partnerships
© 2019 Whiteboard Venture Partners

12. Q&A
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13. THANK YOU
Thinking about solving a cybersecurity challenge? Please reach out
Whiteboard Venture Partners is building an exclusive community
targeting increased collaboration between early stage security
innovation stakeholders. Learn more at https://www.ciso.ventures/
Submit Pitch: https://www.ciso.ventures/founders-pitch
© 2019 Whiteboard Venture Partners