The cybersecurity industry is often framed as a US and Israel story.

Silicon Valley drives category creation.Tel Aviv drives elite technical innovation.Europe? Fragmented, underfunded, slower to scale.

But what does the actual data say?

In this opening episode of Season 2 of Scaling Cyber, we sat down with Richard Stiennon, Founder of IT-Harvest — one of the most comprehensive cybersecurity market research firms in the world — to separate perception from reality.

And the reality is more nuanced.

Founder & Analyst Journey

Richard has spent decades tracking cybersecurity vendors globally.

IT-Harvest maintains a continuously updated database of thousands of cybersecurity companies, including those that were acquired, shut down, or disappeared quietly.

Unlike narrative-driven industry commentary, this dataset provides a structural view of the ecosystem:

• Vendor density by region• Category saturation• Acquisition velocity• Growth patterns• Funding disparities

It’s one of the few places where the entire cybersecurity market can be examined objectively.

The Market Shift: Europe vs US vs Israel

Here’s what the data shows:

* The US still produces the highest number of new vendors annually.

* Israel continues to punch above its weight because its companies must sell globally from day one.

* Europe has large vendor density in countries like Germany, France, and the UK, yet fewer breakout category leaders.

Why? Structure.

US companies benefit from:

* Deep, risk-tolerant venture capital

* A unified large domestic market

* Established M&A pipelines

* Immediate analyst and media visibility

Israel benefits from:

* Military-driven talent pipelines

* Export-first mindset

* Tight founder-investor networks

* Aggressive global ambition

Europe, by contrast:

* Is fragmented by language and regulation

* Has smaller, more conservative funding rounds

* Often builds product depth before category clarity

* Tends to underinvest in positioning and analyst relations

The result? Strong technology. Slower global category dominance.

Why It Matters

This isn’t just about national pride.

It affects:

• Investor returns• Founder ambition• Market consolidation• Buyer awareness• Ecosystem maturity

If Europe wants more category leaders, it must align capital, ambition, positioning, and ecosystem support.

Scaling Lessons

A few powerful insights from the conversation:

* Visibility is strategic, not optional.

* Analysts are not gatekeepers — they are amplifiers.

* Platform narratives often repeat historical mistakes.

* Venture capital scale influences global velocity.

* AI will reshape the vendor landscape faster than most expect.

Richard’s strongest warning?

AI-driven transformation will fundamentally alter cybersecurity within 12 months, and exponentially beyond that.

Founders who ignore this shift risk irrelevance.

Key Takeaways for Cyber Founders & Leaders

* Focus your category before expanding into adjacent products.

* Understand who your buyer actually is — and who they are not.

* Don’t assume technology alone will drive adoption.

* Engage analysts early to shape perception.

* Study structural advantages — and compensate strategically.

* If you’re building in Europe, think globally from day one.

About the Guest

Richard Stiennon is Founder & Chief Research Analyst at IT-Harvest, maintaining one of the most comprehensive global cybersecurity vendor databases. He is also author of Up and to the Right, a leading guide to analyst relations in cybersecurity.

🎙️ About Scaling Cyber

Scaling Cyber spotlights cybersecurity founders and ecosystem leaders outside the traditional US/Israel hubs — surfacing the real stories behind building global cyber companies.

If you’re a founder, investor, CISO, or partner looking beyond the obvious markets — this is your front-row seat.

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