MSPs have long been the IT backbone for businesses, but they’re rapidly becoming essential players in cybersecurity as well. With cyber threats escalating and compliance tightening, security isn’t just a feature anymore – it’s a must-have.
Why this matters: As MSPs double down on security, a massive opportunity is emerging for cybersecurity startups to tap into their vast customer base. With 40,000+ MSPs in the U.S. alone, this sector shows immense potential and is primed for innovation.
Key market shifts we’re tracking and double clicking in the report:
- Rapid consolidation – PE-backed roll-ups are changing the fragmented landscape and competitive dynamics in the industry.
- MSPs are doubling down on security – Higher margins, growing threats, and customer demand are driving the increased adoption of cybersecurity services.
- AI is a game-changer – From smarter threat detection to SecOps automation, AI is redefining how MSPs operate.
At Inovia, we’ve been investing in software for two decades, watching the cybersecurity industry evolve at breakneck speed. We’ve backed some of the companies shaping this space – Flare, Certn, Cavelo, TugBoat (acquired by OneTrust), Aikido, Lakera, and Inscora – and we’re excited about the next wave of startups emerging in this space.
INDUSTRY INSIGHTS
40,000 and Growing: Why MSPs Are Critical for Modern Business Security