Data1Qbit's mission is to collect all possible data related to vendors and products in the cyber security industry and then package and sell that data in multiple ways, including through our flagship product VAaaS (Vendor Assessment as a Service). Because of the vast scope of the threat landscape, the target markets for that data are potentially quite extensive.

A profile of these target markets can be broken into the following ten key segments:

• Business and IT professionals involved in making cyber security decisions and product purchases
• Consultants advising buyers of IT security products
• Analysts serving investors & stakeholders in IT security companies
• Investors and financiers of IT security companies
• Friendly governments and security agencies
• Government, military, cyber security, and law enforcement agencies, and IT procurement specialists
• Think tanks
• Cyber security product vendors
• Cyber security insurance underwriters, risk managers, and product developers at insurance companies, large enterprises, and municipalities
• Risk managers, auditors, and analysts

 

Market Validation

Business Demand Market Validation.  Over the last two years, the Founder has been conducting various market validation surveys in an attempt to determine the understanding of the cyber security problem, the Data1Qbit solution set, and the demand for the data products that Data1Qbit will produce—especially the VAaaS product.

The Founder has a large and well-positioned professional network in the Denver, CO area, and he queried this network extensively and continuously as the deal unfolded and developed.

The surveys consisted of communicating or talking directly with several hundred business professionals, owners, executives, and leaders—decision-makers were always the target. While the surveys were informal, there was some structure and organized analysis applied. It is understood that this type survey is in no way scientific or conclusive; however, it has proved to be very informative and played a key role in shaping and moving this opportunity to the point where it is today.

Some of the testimonials provided by Board of Advisor members are indicative of the types responses received.  Additionally, various executives took it upon themselves to poll high-ranking associates and garner additional insights. Keith Larson, Philippe Brunet, and Scott Preble’s comments reflect such activity.

It is clear that the business and IT leadership fully grasp the need to purchase and deploy the best products possible to defend their networks. The problem is that they do not have the resources to do this. Once it was explained to them, however, how having access to a SaaS application that contains ALL available data about ALL cyber security companies and ALL of their products—and that this application could help them comparison shop between the products, they got it immediately. And they did not hesitate to exclaim that they would buy it.

Interestingly enough, whether they represent the viewpoint of large enterprises or SMEs, the respondents consistently expressed that they would happily pay more than the subscription prices described in our pro-forma.  Board Member Nat Kannan’s comments are typical of the response in this regard.                                             

The responses which indicate the need and demand for these products has been so completely consistent since the beginning of this effort that there is no longer a shred of doubt in the Founder’s mind regarding the market viability of the Data1Qbit business model or the VAaaS product.

Department of Defense (DoD) and Intelligence Community (IC) Validation. The founder is currently engaged in conversations with various DoD, IC, and defense contractor enterprises and/ororganizations about the value of the Data1Qbit cyber security company and product data to their strategic cyber security needs. The sensitive and timely nature of this particular data and the unique ways we intend to collect and organize it are proving to be of obvious interest to these organizations. Our goal is to acquire a broad mix of these organizations as strategic partners, customers, grantors, and/or investors.

Cyber Insurance Market Validation. Starting in March of 2015, the Founder has been discussing the Data1Qbit business model and the industry data stream product with various senior business, underwriting, and risk management personnel within the cyber insurance industry. The purpose of these discussions is to determine the demand for purchasing data related to cyber security companies and products as it pertains to the development of risk management and cyber insurance products. Additionally, the Founder is seeking to build one or more relationships with insurance companies as potential investors in this venture.

Until recently, many insurance executives had little understanding of the value of comprehensive product and company data of this kind. There were multiple reasons for this, but the primary reason is that most of them had, until now, suffered few claim loses. The landscape has shifted, however, and the necessity of utilizing such data has become very clear.

At this time, as a result of attending the Advisen Cyber Insurance conference in Chicago, the Founder is engaged in multiple discussions with cyber insurance companies with the goal of making one or more of these companies strategic partners, customers, and/or investors in Data1Qbit.  

WSJ Article April 13, 2015: Companies, Seeking Common Ground on Cybersecurity, Turn to Insurers (Excellent article providing additional insight regarding the above subject matter).