- Blockchain security startups had the highest annual returns at 17.727% and fastest time to IPO at 3.5 years among cybersecurity sectors from 2010-2022, per a study by Swiss researchers.
- The study analyzed Crunchbase data on 19 cybersecurity startup sectors, using machine learning to estimate missing IPO info.
- Researchers believe blockchain’s strong performance is driven by high investor interest in cryptocurrencies during the 2010-2022 period studied.
A new study from Swiss researchers has found that investments in blockchain security startups significantly outperformed other information security sectors between 2010 and 2022. The study analyzed data from Crunchbase to identify and rank 19 information security startup sectors.
The Study and Methodology
The study, titled “Measuring the performance of investments in information security startups: An empirical analysis by cybersecurity sectors using Crunchbase data,” looked at expected annual returns and time to IPO for security startups. Researchers used a machine learning approach to compensate for missing IPO data in Crunchbase.
Blockchain’s Superior Returns
The study found that blockchain startups had the highest expected annual returns at 17.727%, compared to 6.725% for artificial intelligence, the second best performing sector. Blockchain security startups also went public faster than other sectors, averaging just 3.5 years from first funding round to IPO.
Driving Factors Behind Blockchain Returns
According to the researchers, the strong performance of blockchain security startups is likely driven by high investor interest in cryptocurrencies during the study period from 2010 to 2022. The researchers note that data after the COVID pandemic was not included, which other studies have identified as transformative for blockchain and crypto.
Conclusion
The Swiss study provides empirical evidence that blockchain has been the top performing cybersecurity startup sector in recent years as measured by expected returns and speed to IPO. The researchers attribute this performance to surging interest in cryptocurrencies and related blockchain technologies.
