Post #30: $3.9m is a lot of money; $1tr is a lot more

No one likes the idea of being hacked, but cybercrime is increasingly omnipresent, and its costs are rising. The cost of a data breach has grown by 12%

Post #30: $3.9m is a lot of money; $1tr is a lot more

No one likes the idea of being hacked, but cybercrime is increasingly omnipresent, and its costs are rising. The cost of a data breach has grown by 12% over the last five years and now amounts to an average of $3.9m per corporate, according to a study published today by IBM in conjunction with the Ponemon Institute. These costs comprise the financial impact, the burden of potentially increased regulation and the complex process of resolving criminal attacks.  

The report makes for daunting reading. Consider that organisations globally have lost over 11.7bn records in the last three years as a result of cybercrime. Businesses within the healthcare sector (perhaps owing to their outdated IT) are the biggest victims. Interestingly, while cybercriminals are the main culprits, the report suggests that over 40% of data breaches could potentially have been avoided had it not been for human error and/or system glitches.

From every crisis springs and opportunity. To address the low-hanging fruit, staff training can clearly be improved. More practically, increased process automation and the better deployment of next-generation cybersecurity software represent potential solutions. Against this background, some $1tr is set to be spent on cybersecurity solutions over the next seven years, per a study from Cybersecurity Ventures, a leading industry research provider.  Where will all this money go? We do not know the answer but believe that those businesses operating in niche segments with differentiated propositions stand to benefit. The term ‘artificial intelligence’ may be one of the most over-used within the broad arena of future trends, but cybersecurity remains one of its best use-cases. Through the analysis of large data sets, AI can help make cybersecurity solutions more pre-emptive, stopping threats before they even arrive. 

Disclaimers

The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document. 

The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital's prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital's prior written consent. 

Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
fax +44 20 7070 1881
email [email protected] 

Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority 

Related Insights

Featured Insights
Featured Insights22 July 2021

Season 3, Post 29: Quiz time

Your one and only question is the following: what do electric vehicles and plant-based burgers have in common? The answer: they’re both getting better the whole time. As improvements to these products occur, so adoption levels should increase. This intriguing analogy was made to us by the Chief Executive of Meatless Farm, Morten Toft Bech, […]

Learn more
Featured Insights
Featured Insights15 July 2021

Season 3, Post 28: The magic of mushrooms

Mycelium-tech could be the next big thing. You might think you are familiar with the humble mushroom. Fried, they work well as a breakfast option, for example. Alternatively, they could perhaps be chopped into a pasta dish or salad. However, when you buy mushrooms in your local store or – even better – see them […]

Learn more
Featured Insights
Featured Insights06 July 2021

Season 3, Post 27: Take a trip on the hyperloop

Imagine being able to get from central London to Edinburgh in less than an hour, or from downtown New York to San Francisco in fewer than five. Think of all that extra time you would save. Travelling the former route by train currently takes close on four hours, while, a coast-to-coast US trip might require […]

Learn more

Get The Updates

Separated they live in Bookmarks right at the coast of the famous Semantics, large language ocean Separated they live in Bookmarks right

GET THE UPDATES

Sign up to our monthly email newsletter for the latest fund updates, webcasts and insights.