Fundraise Prep 1

Delivered March 22nd, 2018. Contributors: Abigail A., Patricia R., Jessica G., Jennifer S. and

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Overview - ISAC's/ISAO's

The National Council of ISACs, the umbrella body for all ISACs and ISAOs, has 24 members out of which 20 are listed on their website. This means that every 3 years, for the last 18 years, 2 ISACs/ISAOs have been formed. These organizations are about 88% nonprofit represent critical sectors such as automobile, aviation, communication and others.  We found there has been an increase in these organizations based on geography (there at least two in California) and industry (the finance sector is further breaking down into industrial sectors e.g Credit Unions). Based on the growth of established ISAOs and ISACs, we can predict that there will be an average of 2 organizations founded per year in the next 3-5 years.

Please find below a dive into this request.
NUMBER OF ISAOs/ISACs
The NCI lists 20 ISACs across various sectors.  These are automotive, aviation, communications, defense, downstream, electricity, emergence management, finance, health, info-tech and maritime. Others are multi-state, national defense, national health, oil and gas, real estate, research and education, intelligence, surface and public transport and water.  However, as of March 2018, there are 24 registered members. These ISACs were established between 1999 and 2017. 

Please find below a dive into this request.
GROWTH IN ISAOs/ISACs
On the average, 1.3 ISACs established each year.  We arrived at this figure by dividing the number of ISACs by the number of years since the first ISAC was founded.

Overall growth in 18 years= 24/18 =1.3

In real terms, some years have seen more growth than others. For example, while there were no ISACs founded in certain years, the highest growths we found were in 2014 with four ISACs founded and 2003 with three ISACs established. We can, therefore, conclude that growth of ISACs has been uneven.  

Yet, we found that some organizations are operating as ISAOs but have not identified with NCI by registration, while others are still working on their framework. Based on this information, we believe that more numbers will be added in the next few years. This growth will be based both on geography (the location of the ISAOs) and industry (a break up of some current ISAOs).  For example, in California, there is more than one ISAO, while in the finance sector, Credit Unions are separating from Financial Institutions ISAC to form National Credit Unions ISAO.  

Basing our prediction on the information we have for the last five years, we can say that there will be an average of 2 ISACs/ISAOs established annually in the next 3-5 years. We arrived at this figure by adding the number of ISACs from 2013 to 2017 and dividing it by the number of years. (See the Section 'NUMBER OF ISAOs/ISACs BY YEAR OF ESTABLISHMENT' below) 

Number of ISAOs/ISACs in the last 5 years= at least 9
Average yearly growth in the last 5 years=9/5 =1.8 or approx 2. 

If you add the number of ISAO's from 2013 to 2017 as shown below, you will get the number 8. But, in our triangulation above, we have said at least 9. This is because this interview from April 2017 lists three ISAOs (Southern California ISAO, Northeast Ohio Cyber Consortium and Virginia Cyber Range) which are not included in the NCI website. Also, after searching through NCI's websites, reports, press releases and articles, we could only account for the date of establishment of 17 ISACs out of 24 reported by the NCI website. Therefore, there is a possibility that at least one additional ISAO would have been established between 2013 and 2017.
NUMBER OF ISAOs/ISACs BY YEAR OF ESTABLISHMENTWe have presented the number of ISACs by the years they were formed below. 

 1999: 1 
 2000: 1 
2001: NA
 2002: 2
 2003: 3
2004-2006: NA
 2007: 2
2008-2009: NA
 2010: 1
2011-2012: NA
 2013: 1
 2014: 4
 2015: 2
2016: NA
 2017: 1
CONCLUSION
To wrap up, in the last 18 years, there have been 24 ISACs/ISAOs formed. These organizations cover information sharing in critical sectors such as aviation, finance, health, defense and so on.  We can expect continued growth in ISAOs/ISACs based on geography and industry as a greater need for information sharing continues to arise. We predict a growth of two ISACs/ISAOs each year for the next 5 years. 

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Market Sizing - Threat Intelligence Platform market in cyber security

The US Threat Intelligence Platform market reached an estimated US$393.82 million as of 2017, as part of a total threat intelligence market of US$875.15 million.

Please see below for our methodology and calculations.

METHODOLOGY & ASSUMPTIONS
In order to answer your query, we started by looking for reports and studies on cybersecurity and threat intelligence, focusing on the US and platforms. However, after researching through sources like Markets and Markets, Zion Market Research, Grand View Research, IDC, ReportsnReports, MarketsResearchFuture and Research and Markets, we were unsuccessful in locating a publicly available report that focused on Threat Intelligence Platforms or included specific numbers about them.

Therefore, we took a different approach. Using available figures on global cybersecurity and US cybersecurity markets, as well as what percentage of said market corresponded to software (for which we used the percentage that pertained to services as approximation, since it was the only one publicly available), we calculated an estimation of the US Threat Intelligence Platform market as it would be in 2017. Note that some reports contradict each other on their estimations of the market, we have pointed some of said conflicting figures below.

Please keep in mind that said figure is an estimation, and should be taken as such.

Also keep in mind that, despite some data on federal usage of cybersecurity being publicly available, no information on private vs. government market for threat intelligence could be located.

THREAT INTELLIGENCE PLATFORM MARKET SIZE IN THE US
According to a report by Zion Market Research, the global cybersecurity market reached US$105.45 billion in 2015, with a forecast 9.5% CAGR through 2020 — which would put the market in 2017 at US$126.43 billion.

However, a more recent study by Markets and Markets was more bullish, calculating the global cybersecurity market at US$137.85 billion — including software, services, cloud and several other segments.

According to numbers by IDC, reproduced by e-Week, the US is the largest market for cybersecurity, accounting for US$31.5 billion as of 2016. Assuming that the market stayed the same in 2017, that would mean that it represented 22.85% of the global cybersecurity market.

The same study pointed out that services are the largest segment of the cybersecurity market, representing 45% — followed by software. The report does not point out what percentage software makes up, but given that it is the second largest, we can use 45% as approximation for the share of software in the cybersecurity global market.

The global threat intelligence market was worth US$3.83 billion in 2017, according to a report by Markets and Markets, of which, applying the figures above, we can assume the US brings in 22.85% — which would make the US threat intelligence market an estimated US$875.15 million. Of this, 45% can be assumed to be software, so the market size for Threat Intelligence Platforms in the US is an estimated US$393.82 million as of 2017.

CONCLUSION
To wrap up, the US Threat Intelligence Platform market reached an estimated US$393.82 million as of 2017.

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Market Sizing - Fraud Intelligence Platform market in cyber security

The US market size for Fraud Intelligence Platforms in cyber security is approximately $14 billion with a CAGR (calculated annual growth rate) of 18%.  The market size is estimated to be $41.59 billion by 2022.  The US represents 40% of the global cyber security market.  North America is expected to have the largest market share and dominate the Fraud Detection and Prevention Market from 2017 to 2022, due to the high number of early technology adopters in this region.  

GENERAL METHODOLOGY
Information is rather scarce on this topic, in regard to the market size of fraud intelligence platforms in cyber security.  We have triangulated the best answer based on the data that we were able to find.  We were able to find two pre-compiled sources that gave us very similar figures for the market size.  The first stated that the market size is currently $16.62 billion with a CAGR of 20.1%.  The second stated that the market size is $12.37 billion with a CAGR of 16.62%.  We took an average of each set of the figures for market size and CAGR, and approximated this to be a market size of approximately $14 billion ($12.37b+$16.62b=$28.99b.  $28.99b / 2=$14 billion), with an estimated CAGR of 18% (20.1% x 16.62% = 36.72% / 2 =18.36% = 18%).

We supported the $14 billion figure by finding the global cyber security market for 2017 which was $137.85 billion (USD).  I then located a source that states that the US accounts for 40% of the global market.  We also found a source that states that fraud intelligence and related activities account for 25% of the total cyber security market, ($137.85b X 40% of the market = $55.14b x 25% = $13.78 billion).  As $13.78 billion closely matches the $14 billion market size from above calculations, we feel confident in using this number to represent the market size.

FRAUD DETECTION MARKET
The fraud detection and prevention market, which includes, solution (fraud analytic and authentication), service, application area (insurance claim, money laundering, electronic payment, and mobile payment), is expected to grow to $41.59 billion by 2022.  Artificial intelligence is playing a crucial role in cyber security by identifying threats and protecting organizations’ data from lethal cyber attacks.  Cyber frauds such as identity and payment card thefts, account for over 55% of all cyber crimes.

FRAUD INTELLIGENCE IN CYBER SECURITY
The US cyber security market makes up almost 40% of the global cyber security industry, with four of the top five cyber security vendors headquartered in the US.  Fraud Intelligence and detection represent 25% of the total cyber security market.  The global cyber security market size is expected to grow from $137.85 billion in 2017 to $231.94 billion by 2022.  

ARTIFICIAL INTELLIGENCE IN CYBER SECURITY
 Artificial intelligence is playing a crucial role in cyber security by identifying threats and protecting organizations’ data from lethal cyber attacks. It speeds up the process of noticing attacks and enables organizations to adopt predictive measures in combating cyber crimes.  Cyber frauds such as identity and payment card thefts, account for over 55% of all cyber crimes.  AI offers solutions to combat cyber fraud by detecting threats, reducing response time, and refining techniques to distinguish attacks that require immediate attention.  The global artificial intelligence in cyber security market is expected to reach $18.2 billion by 2023.

CONCLUSIONS
From our triangulations, we have concluded that the estimated US market size of fraud intelligence platforms in cyber security is approximately $14 billion with an estimated CAGR of 18%.  The US accounts for about 40% of the global market size of the global cyber security market, which is expected to grow from $137.85 billion in 2017 to $231.94 billion by 2022.

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Competitive Landscape - Threat Intelligence Platforms

We have provided a comprehensive competitive landscape of four companies in the threat intelligence platform industry: Recorded Future, Anomali, ThreatQuotient, and ThreatConnect.  All information gathered is summarized on the attached spreadsheet. 

This analysis was completed using each company’s website and other external reliable sources such as Bloomberg and Crunchbase. However, we were unable to find pricing information despite searching each company's website and other industry media extensively and concluded that the information is not publicly available. 

For each company we provided:
•	Business Summary
•	Investor amounts and information
•	Products & Services Offered
•	Pricing (none available, contact for quote)
•	Target Market
•	Competitive Advantage


CONCLUSIONA comparative analysis of four threat intelligence service has been completed on the attached spreadsheet. Recorded Future, Anomali, ThreatQuotient, and ThreatConnect each offer valuable security and intelligence tools and have their own unique competitive advantages. 