Early-stage benchmarks for young cybersecurity companies

We are eager to applaud Israel’s cybersecurity unicorns’ incredible achievements, but every success story has to begin somewhere. We have developed a focused, value-add program to support cybersecurity founders during this most critical stage and maximize their potential in building market-leading companies, which is why we have developed a focused, value-add program to support cybersecurity founders during this most critical stage and maximize their potential in building market-leading companies. However, the early stages of Cybersecurity Company building are often shrouded in mystery, only coming into the light for fundraising and feature announcements. This leaves many entrepreneurs we speak with asking what exactly cybersecurity companies are achieving behind the curtain to earn these huge victories.

Despite the fact that each company’s path is unique, we may use trends and patterns to set performance benchmarks for the whole cybersecurity ecosystem. The sensitive data needed to understand a company’s early success is typically unavailable or concealed to most entrepreneurs. Furthermore, beyond the industry properly define proxies for growth and momentum leaving cybersecurity founders hunting for landmarks without a map. When it comes to establishing large firms, entrepreneurs need benchmarks to aim towards, and the easiest way to determine crucial customer and revenue objectives is to look at what other successful cybersecurity companies have accomplished. Previously, analogous measures have been produced for broader sectors of technology, such as SaaS.

Early-stage benchmarks for young cybersecurity companies

We gather this information by leveraging our experience and resources to keep our founders up to current on the most up-to-date cyber security-specific indicators for long-term and large-scale growth. We anticipate that by sharing these unique insights into early-stage cybersecurity startups — based on the average success of our own portfolio companies — entrepreneurs in the broader Israeli ecosystem would be able to establish more confident budgets and roadmaps based on industry evidence.

Though today’s investors are becoming more aggressive, a successful Series A from quality investors typically requires $500,000 in annual recurring revenue (ARR), and attaining that figure soon should remain every entrepreneur’s aim. Achieving this goal demonstrates product-market fit and customer commitment to your solution. 

Even when pricing differences are taken into account, the greatest organizations we have seen can achieve the $500,000 threshold in less than 18 months. Top-performing businesses should expect to develop traction and surpass $1 million in annual revenue in 18 to 24 months. For Israeli cybersecurity entrepreneurs, success is dependent on a number of things, but it is mostly dependent on how well founders connect with relevant clients outside of the Israeli market.