The venture firm predicts that next wave of companies to exit will average $375MM of ARR or more, nearly double the prior wave
SAN FRANCISCO–(BUSINESS WIRE)–Acrew Capital today released a new report, “Exit Escape Velocity for Cybersecurity Startups” that provides a comprehensive analysis of venture-backed cybersecurity company exits dating back to the Dot-Com era. The study explores trends spanning more than three decades, highlighting the evolution of exit dynamics and predicting exponential growth in topline revenue and funding benchmarks for the next generation of cybersecurity IPOs.
The full report is available here.
Some Startups Really Are Rocketships
The study categorizes exits into five eras—Dot-Com, Pre-Financial Crisis, Post-Financial Crisis, COVID, and Post-COVID—unveiling the factors that have reshaped exit conditions over time. The findings show a dramatic increase in the financial scale required for cybersecurity startups to achieve successful exits, reflecting a heightened “gravitational pull” of the market.
Key Findings:
- Exponential Growth in ARR Benchmarks: At the time of their exit, companies in the COVID Era averaged $194MM of trailing twelve months (TTM) revenues, while companies that exit in 2025 are expected to achieve $375MM in annual recurring revenue (ARR)—nearly double that of the COVID era.
- Increased Capital Requirements: The average venture funding raised through exit has risen sharply, from $6MM in the Dot-Com Era to $301MM in the Covid Era. Those scaled cybersecurity startups that are yet to exit have already raised an average of $717MM.
- Time to Exit Plateau: The average time from founding to exit has stabilized between 11 and 12 years since the Post-Financial Crisis Era, reflecting the maturity of the cybersecurity market.
Downstream Implications
The report underscores that the financial profile for a successful exit has become increasingly demanding, requiring startups to scale operations significantly. Venture funding now mirrors the fuel required for rocketships, as companies must raise exponentially more capital to reach the heightened exit benchmarks.
“The analogy of startups as rocketships is apt when you look at the exponential dynamics driving cybersecurity exits today,” said Mark Kraynak, Co-founder & Partner at Acrew Capital. “This report highlights how much the game has changed over the past three decades, with the Post-COVID Era poised to redefine the benchmarks required for cybersecurity startups to reach public markets.”
About Acrew Capital
Acrew is a thesis and values-driven venture fund, founded in 2019 by Lauren Kolodny, Theresia Gouw, Asad Khaliq, Mark Kraynak and Vishal Lugani. The fund invests in companies from early to inflection growth stages across Fintech, Data & Security and Health. Acrew’s security portfolio includes Aembit, At-Bay, Aqua Security, Cato Networks, Exabeam, Ketch, Nokod Security, Protect AI, Radiant Security, Silverfort, and Vanta. For more information visit us on the web, and follow us on LinkedIn.
Contacts
Media Contact:
Marc Gendron
Marc Gendron PR for Acrew
[email protected]
+1-617-877-7480
