IT security stocks have soared after the seven big data breaches made public over the past three years, according to the Bessemer Venture Partners Cyber Index released Tuesday.
The BVP Cyber Index tracked the capital-weighted performance since Jan. 1, 2011, of 29 public companies whose primary business is cybersecurity. Almost half of those companies are valued at more than a billion dollars.
The public IT security sector outperformed the stock market by more than two times during that time, and outperformed the market by about five times the month after those breaches were made public.
"With IT security budgets approaching 10 percent annual growth rates, the market is projected to double over the coming five years, reaching nearly $200 billion in sales," said BVP partner David Cowan.