Watchlist Criteria — How Companies Get on Our Watchlist
Transparency is core to our credibility. Here is exactly how we evaluate cybersecurity startups, assign scores, and determine status categories. Every company on our watchlist earns its place through the same framework.
Scoring Dimensions
Each company receives a composite score (0-100) based on five weighted dimensions. Scores are recalculated quarterly using the latest available data.
Growth Velocity
25%Year-over-year revenue or ARR growth rate relative to stage-adjusted peers. We normalize for funding stage — a 200% growth rate at seed stage signals differently than at Series C.
Product Differentiation
20%Technical architecture uniqueness, detection efficacy (where measurable), and defensibility of the technology approach. We evaluate whether the product represents an incremental improvement or a generational shift.
Enterprise Traction
20%Customer count, logo quality (Fortune 500, government, regulated industries), net revenue retention, and customer expansion signals. Weighted by stage appropriateness.
Investor Signal
20%Quality and relevance of investor backing, follow-on dynamics, and institutional interest. A Tier 1 cybersecurity-focused investor carries more signal than a generalist at equivalent check size.
Founder-Market Fit
15%Domain expertise of founding team, relevant prior experience, technical depth, and demonstrated ability to recruit in cybersecurity. Teams with deep practitioner backgrounds score higher.
Status Categories
Beyond the numerical score, each company receives a status category that reflects its trajectory. Status changes are reviewed and published quarterly.
Sustained top-tier performance across all dimensions. Score above 90 for at least 2 consecutive quarters. Only 1-2 companies hold this status at any time.
Improving trajectory with score increases for 2+ quarters. Companies demonstrating breakout potential that could move to Must Watch with sustained execution.
Consistent execution but not accelerating. Solid companies that maintain their watchlist position without showing the breakout signals of Rising or Must Watch.
Declining signals relative to peer group. Score declining for 2+ quarters, or growth rate falling below stage-adjusted median. Companies may be removed if trend continues.
Data Sources
Our watchlist scoring uses multi-source signal aggregation. No single data source determines placement. Signals include:
- Public funding data (SEC filings, press releases, Crunchbase, PitchBook)
- Revenue and growth metrics (self-reported, estimated, or independently verified)
- Customer and enterprise traction signals
- Product and technology assessments (demos, documentation, independent testing)
- Investor quality and follow-on indicators
- Team background and domain expertise verification
- Peer and market comparisons from independent benchmarking data
- Third-party coverage and analyst mentions
Quarterly Evaluation Process
Data Collection
Weeks 1-4 of each quarter. We refresh all data sources for 40+ tracked companies.
Score Recalculation
Week 5. Composite scores are recalculated using the 5-dimension framework.
Status Review
Week 6. Status categories are reviewed based on score trajectories and peer comparisons.
Editorial Review
Week 7. Final editorial review and quality assurance. Status changes validated.
Publication
Week 8. Quarterly update published with movement report, status changes, and new entries.
Methodology last reviewed: May 15, 2026. Not investment advice.