CYBER CRIME FUELS OPPORTUNITY...
It's Friday, so it is time for the Avory Chart of the Week!
As technology extends its dominance across the globe, cybersecurity is becoming a persistent issue for consumers and businesses. This problem is creating opportunities. Enjoy!
Let's start with what the chart exhibits. It is a calculation of all of the annual data breaches which have taken place over the last 10 years. Data breaches have gained awareness as consumers and enterprises expand their use of digital data. Nearly 59% of all global breaches are associated to identity theft, with 179 million records exposed in 2017. The average annual loss related to data breaches was $28 million for businesses in 2017. While cyber crimes are not positive, they do however create opportunities for companies to monetize these situations. For example, the size of the global cyber security market climbed last year to $125B, up from $77B in 2011. Also, Guidewire, an insurance technology company acquired Cyence for $275M. Cyence now powers Guidewire customers like Mass Mutal and Farmers, who have limited expertise in cyber risk analysis, however now comfortably unwrite cyber insurance for clients. As technology evolves, the opportunity set will only expand.
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Sean D. Emory
Avory & Co. Founder & Chief Investment Officer
Disclaimer: This is not a recommendation for purchase or sale of any securities.
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