Cybersecurity Firm Safe-T Goes Public, Plans Partner Program Expansion

Safe-T, a provider of software-defined access for hybrid cloud, is the latest cybersecurity company to go public, listed on the Nasdaq exchange.

… Larry Walsh, CEO and chief analyst of The 2112 Group, and member of the Channel Partners Editorial Advisory Board, said the security market is hot. State-sponsored cyberattacks, high-profile breaches, increasing organized cybercrime, more potent hacking and attack tools, and a “slew of new government regulations” are driving up interest and investments in security technology and services,” he said.

“Security spending has increased steadily at a rate of 8.5 percent to 10 percent annually for the past five years and shows no signs of slowing down,” he said. “The global security market is expected to top $120 billion in 2019 and could reach $170 billion by 2023. All of this is drawing more companies and investors into the market. Investors like security because it’s a safe bet. Security companies that have demonstrated an ability to develop a solid revenue base are good candidates for initial public offerings (IPOs) and venture capital funding because they have a higher probability of producing strong returns on investment.”

And going public provides security companies with the capital they need to develop new products, resources that benefit partners and customers, and routes to market, Walsh said. However, going public isn’t the cure to growth challenges or a sign of success, he said.

“It’s a means of raising money and paying off early investors,” he said. “While public companies have access to capital, they also operate under the intense scrutiny of investors and government regulators. This is why there’s a debate over the wisdom of companies being public. This isn’t to say being public is a bad thing, but it does come with this luggage. And because Wall Street is most concerned with revenue and return on investment (ROI), public companies tend to make decisions that satisfy investors, and not necessarily partners and customers.”...

Written by Edward Gately

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