Blockchain: Top-Performing Startup Investment in Information Security
A recent study conducted by a team of Swiss researchers and funded by Switzerland’s Cyber-Defence Campus has revealed that blockchain investments in information security startups have shown the highest returns compared to other sectors. The study, titled “Measuring the performance of investments in information security startups: An empirical analysis by cybersecurity sectors using Crunchbase data,” analyzed 19 different sectors within information security, ranging from artificial intelligence to spam filtering.
The researchers found that the blockchain sector displayed the highest expected annual arithmetic (AAR) and log returns at 177.27% and 105.42% respectively, during the sample period. This suggests that investments in blockchain security startups yielded higher returns compared to sectors such as AI, machine learning, and cloud. Artificial intelligence came in second with expected annualized arithmetic returns of 67.25%. It’s important to note that these figures do not encompass the broader AI and tech sectors but rather focus on investments in the security sector.
Not only did blockchain take the top position for returns, but it also proved to be the fastest-growing sector. On average, blockchain startups reached their first funding round to IPO in less than three and a half years. Other sectors, Took between four and seven years, with E-signature startups requiring 10 years. The researchers gathered data from Crunchbase, which provided extensive information on funding rounds, although some IPO entries were missing. To address this, the team employed a machine learning approach.
The study also highlighted that the performance of blockchain security startups is likely driven by investors’ interest in cryptocurrencies. It’s worth noting that the data used in the study only covered the period from 2010 to 2022 and did not account for the post-COVID activity, which has been considered transformative for the blockchain and crypto industries by other studies. As a result, any developments during this time were not included in the analysis.
This empirical study underscores the potential of blockchain investments in information security startups, showcasing their higher returns and faster growth compared to other sectors in the cybersecurity industry.
8 thoughts on “Blockchain: Top-Performing Startup Investment in Information Security”
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Whoa, blockchain investments in info security startups are on a whole new level! The returns and growth rates are out of this world 🌍✨ Time to jump on the blockchain bandwagon!
The future is bright and blockchain investments in information security startups are leading the way! These returns and growth rates are utterly impressive Time to seize the opportunity!
Did you see those numbers? Blockchain investments in information security startups are BOOMING! The returns are off the charts Time to get in on the action!
It would have been more informative to compare the returns of blockchain investments in information security startups to other traditional sectors outside of cybersecurity.
Blockchain investments in cybersecurity startups are the real deal! They’re showing the highest returns and fastest growth in the industry Exciting times ahead!
This study seems to focus solely on the financial aspect and doesn’t take into account the quality or sustainability of the startups in the long run.
However, I’m skeptical about the data only covering the period from 2010 to 2022. It would have been more comprehensive if it considered recent developments, especially with the transformative effects of COVID-19.
I wonder if the rapid growth of blockchain security startups will lead to oversaturation in the market, potentially affecting future returns.