Cybersecurity Unicorns: The Largest Private Security Companies

Cybersecurity is one of the most resilient areas of technology spending: companies cut many budgets in downturns, but rarely security. Attacks keep growing in frequency and sophistication, regulators demand stronger protections, and AI is creating both new threats and new defences. That has produced a large group of private security companies valued in the billions. This guide ranks the cybersecurity unicorns in our database by sourced valuation, groups them by what they protect, and explains the trends shaping the industry.

Every company links to a full profile with valuation sources, funding history and investors. Public security companies such as CrowdStrike, Palo Alto Networks, Zscaler and Fortinet are mentioned for context.

The ranking

Security categories explained

Data security

Cyera, valued at US$12 billion, is the most valuable company in our ranking. It discovers and classifies sensitive data across cloud services and helps companies control who can access it, an urgent need as organisations feed data into AI systems and must know what that data contains.

Application and software supply chain security

Snyk scans code and open-source dependencies for vulnerabilities, while Chainguard provides hardened container images and libraries free of known vulnerabilities. Supply chain attacks, where attackers compromise widely used software components, have made this a priority for security teams and regulators. Snyk's valuation, set at US$7.4 billion in 2022, has since been marked down by some investors, illustrating how growth slowdowns affect security valuations too.

Identity and access

1Password, the Toronto-founded password manager, has expanded into enterprise access management. Persona verifies the identities of users and customers, a growing need as deepfakes make fraud easier. Identity is often called the new security perimeter, because most breaches involve stolen or misused credentials.

Secure browsers and network security

Island makes an enterprise browser with built-in security controls, while Cato Networks provides secure access service edge (SASE), combining networking and security in the cloud. Both reflect a shift away from traditional hardware firewalls towards cloud-delivered security that protects users wherever they work.

Email security

Abnormal AI, valued at US$5.1 billion, uses behavioural AI to stop business email compromise and phishing that traditional filters miss. Email remains the most common starting point for attacks.

Managed detection and response

Arctic Wolf and Huntress combine software with human security analysts who monitor customers around the clock. They serve mid-sized and small organisations that can't staff their own security operations centres, often through IT service providers.

Compliance automation

Vanta and Drata automate evidence collection and monitoring for security certifications such as SOC 2 and ISO 27001, which companies need to sell software to enterprise customers.

Why cybersecurity attracts investment

• Persistent threats: ransomware, state-sponsored hacking and fraud continue to grow, with damages in the billions.
• Regulation: rules such as the EU's NIS2 directive, US SEC disclosure rules and sector regulations require stronger security and reporting.
• Cloud and remote work: moving to cloud services and distributed workforces created new attack surfaces.
• AI: attackers use AI to write phishing emails, find vulnerabilities and create deepfakes, while companies need to secure their own AI systems and data.
• Talent shortages: there aren't enough security professionals, increasing demand for automation and managed services.

Israel's role in cybersecurity

Israel has produced an extraordinary number of cybersecurity companies, many founded by veterans of military intelligence units. In our ranking, Cyera, Island and Cato Networks have Israeli founders and research teams, and Snyk's co-founders also came from Israel's cyber ecosystem. Many keep research and development in Tel Aviv while placing headquarters in the US. Large acquisitions, such as Google's agreement to buy Wiz for about US$32 billion, have reinforced Israel's reputation.

Consolidation and platforms

Security teams use dozens of tools, which creates complexity, gaps and alert fatigue. Large vendors such as Palo Alto Networks, CrowdStrike and Microsoft are building platforms that cover many categories and acquiring startups to fill gaps. This "platformisation" pressures standalone tools but also creates acquisition opportunities for startups. Private security unicorns must either become platforms themselves or be so good in their category that customers won't replace them.

AI security as a new category

As companies deploy AI models and agents, new risks emerge: sensitive data leaking into AI tools, prompt injection attacks that trick AI systems, agents taking unauthorised actions, and AI-generated code with vulnerabilities. Startups and established vendors are racing to build AI security products, and many acquisitions in 2025 and 2026 targeted AI security startups. Data security companies like Cyera and software supply chain companies like Snyk and Chainguard have positioned themselves to benefit.

How security companies are valued

Security companies are valued like other SaaS businesses, mainly on ARR growth, retention and margins, but often at premium multiples because of the sector's resilience. Investors pay particular attention to net revenue retention, since customers tend to expand security spending over time, and to whether a company can become a platform. Companies with ARR above US$100 million and strong growth, such as Huntress or Abnormal AI, are frequently mentioned as IPO candidates. Our guide to SaaS valuation multiples explains the metrics.

Questions for security buyers

• Does the product reduce real risk, or just generate more alerts?
• How well does it integrate with your existing security stack?
• Will the vendor remain independent, or could it be acquired?
• How are AI features governed, and what data do they access?

What to watch

Watch for security IPOs, large acquisitions by platform vendors, AI security product launches and funding rounds for data and identity security companies. Our guide to upcoming tech IPOs covers security companies preparing to list.

Recent security deals

The security market has seen some of the largest technology acquisitions in recent years. Google agreed to buy Wiz, a cloud security company, for about US$32 billion. Palo Alto Networks agreed to acquire CyberArk, the identity security company, in a deal worth about US$25 billion. Platform vendors have also bought many smaller startups in AI security, data security and security operations. These deals give investors confidence that security startups can achieve large exits even if they don't go public, and they push remaining independent companies to grow quickly or find partners.

How companies buy security

Security purchases are usually led by chief information security officers and their teams, with input from IT, legal, compliance and finance. Buyers evaluate how well a product reduces specific risks, how easily it integrates with existing tools, the vendor's own security practices and financial stability, and total cost. Many organisations now prefer fewer vendors with broader platforms, but they still buy specialised tools for critical gaps. Mid-sized and small organisations often buy through managed service providers, which is why channel partnerships matter for companies like Arctic Wolf and Huntress.

Security for small businesses

Small and mid-sized businesses are frequent targets because they often lack dedicated security staff. Startups focused on this market, such as Huntress, sell mainly through managed service providers, offering affordable, easy-to-deploy protection with human experts behind it. Cyber insurance requirements have pushed many smaller organisations to adopt endpoint detection, multi-factor authentication and backups, creating demand for these services.

Funding trends

Security startups continued to raise large rounds even during the 2022 to 2024 funding slowdown, because investors view the sector as resilient. In 2025 and 2026, AI security, data security and identity companies attracted particular attention, with several raising at sharply higher valuations within a year.

Investors also favour companies with strong net revenue retention, since customers that adopt a security product tend to expand its use across more users, devices and data over time.