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5 Pitfalls For Emerging Endpoint Security Vendors

Venture capital financing has flowed like a torrent into endpoint security startups, but a crowded IT security market and untested technology could derail some of those investments in 2015. Here are five threatening signs.

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Industry Observers: Crowded Market Can’t Sustain Itself

More than $1.37 billion in venture capital financing has flowed into cybersecurity startups since 2010, according to VC tracking firm CB Insights. There were major financing deals in 2014 including investments struck with cloud security specialists Skyhigh Networks, Centrify and Ionic Security. IT systems and security management vendor Tanium raised $90 million in its first round of VC funding. CipherCloud received a $50 million Series B round in November. Early stage investments also were made in ThreatStream, Fortscale, Cybereason and others.

Forrester Research analyst Rick Holland is tracking 30 to 40 early stage security vendors. He told CRN that startups need to reduce operational friction and enable teams with limited skills and staff to operationalize the tool effectively. Here are five signs an emerging security vendor may be struggling to compete in a crowded information security market.

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