The startup idea is to create an Internet of things (IoT) device that will connect to the home wifi network and secure all the connected devices on the network from malware. The Internet of Things is stated to be the future of all the devices that we use in our day to day lives. It is the need of the hour that these devices are protected from malware and attacks from hackers to hijack and become a part of the attack network. This startup will add the otherwise missing layer of security to the IoT ecosystem.
Market Definition | IoT Security Solutions To Prevent Cyber Attacks
Almost half internet got impacted by a cyber attack on October 21, 2016. Twitter, Spotify, and Reddit, and a huge swath of other websites were down. This was happening as hackers unleashed a large distributed denial of service (DDoS) attack on the servers of Dyn, a major DNS host.
Paul Kaminsky, CEO, and Founder of a leading cyber security firm – impletec says “ Today’s World Wide Web spans over millions of computers scattered throughout the world with millions of people using the Internet for professional and personal needs. The everlasting necessity to maintain billions of connections uninterrupted, thus ensuring access to sites and services turns main Internet nodes into attractive targets for violators who flood this structure or parts of it with all kinds of “bad” traffic, rendering it inaccessible to legitimate traffic. Even a short-lived denial of service attack can cause serious disruptions in revenue streams and may have devastating consequences for both private and public online entities.” Now more often than not, the attacks are coming by hijacking million of unsecured iot devices which do not have a robust security layer.
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Marketsandmarkets.com has predicted that IoT market is expected to grow from USD 130.33 Billion in 2015 to USD 883.55 Billion by 2022, at a CAGR of 32.4%. It has also been predicted that the IoT security market is touted to grow to USD 36.5 billion in 2021 from the current USD 7.90 billion (2016) at a compounded annual growth rate of 36.1%.
Some other interesting facts on IoT security include:
- According to Gartner, by 2018, over 50% of IoT device manufacturers will not be able to address threats from weak authentication practices;
- Gartner also predicts that by 2020, more than 25% of identified enterprise attacks will involve IoT, though IoT security will account for only 10% of IT security budgets;
- Microsoft states that year on year growth of cyber security breaches in 2014 was 78%, and security is the biggest concern for corporates in the path for IoT adoption
Competitor Analysis | IoT Security Solutions To Prevent Cyber Attacks
IoT market is out of the early stages, and we see use of the IoT devices in our daily lives. This has led to a demand for better security of such devices and the data transfers through them. Companies are keen on tapping this market, and both small and big players have started working on IoT security products. Companies like Phantom and Dojo labs have come out with similar products which protect the IoT devices on a network.
Pain Point & Target Audience | IoT Security Solutions To Prevent Cyber Attacks
The target customer market for this business is “individuals and organizations aiming to build an ecosystem of IoT devices.” Last year vulnerabilities were detected in the wide range of IoT baby monitors by researchers which they believed could be misused by hackers to carry out criminal activities. It has already been proven that internet-connected motor vehicles can be compromised. Although IoT devices are meant to make life easier, their vulnerabilities can lead to catastrophic results, especially, in the case of medical devices.
Value Proposition | IoT Security Solutions To Prevent Cyber Attacks
IoT devices usually do not have the capability to have an anti-malware installed because of the absence of operating systems. In such cases, the proposed product to be launched will be an IoT device which will connect to the router and secure all the devices connected to it from malware and other potential threats.
Business Model | IoT Security Solutions To Prevent Cyber Attacks
The business model for this idea will involve two streams. The first product will be for individual users and will cover personal devices. The second solution could be for companies, covering the devices over local area network. This revenue model will work on the same lines as other ‘anti-virus software’ enterprises in the market. In both cases, the company will offer an annual subscription based plan, paid monthly or quarterly.
Way to market | IoT Security Solutions To Prevent Cyber Attacks
The first step would be to create a small device which can house anti-malware software to protect the devices from cyber-attacks. This software would need to be connected to a cloud which shall have a database of malware which shall be utilized to check the malware attacks. The database needs to be dynamic and updated regularly.
Milestones | IoT Security Solutions To Prevent Cyber Attacks
Tie-ups with IoT device manufacturers will go a long way in establishing a scalable model. The startup should reach out to various IoT device manufacturers and tie-up to offer special discounts to their customers.
Investment Needed For Prototyping | IoT Security Solutions To Prevent Cyber Attacks
For testing & building the prototype, pitch for raising 200K USD from angel investors or incubators in your home country. There should be no office rentals or salary payout; the entire budget should be apportioned for the development of technology.
One of the co-founders should be a network specialist, also ethical hackers would be an excellent addition to the team.
Investors / Expert Take | IoT Security Solutions To Prevent Cyber Attacks
IoT market is considered the next big thing and investors and venture capitalists are keeping a close eye on the inventions and possible disruptors for this market. A good product will garner a lot of interest, but the startup should target reaching a decent amount of revenue before looking for investment. Companies in this area have been getting significant attention and funding.
CyberX, which provides security solutions for industrial sector raised USD 9 Million in Series A. According to industrialiot5g.com, IoT security spending is set to increase by nearly 30% this year. The analyst firm forecasts VC investment in cybersecurity startups will reach $400 million in 2016.
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