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October 26, 2021

Sector snapshot: Trademark royalty rates for cybersecurity software

Cybersecurity is a very dynamic sector, from both ends. Cyber crooks are creative in finding new security gaps, and software vendors and IT managers are relentless in closing such gaps. As a result, M&A activity is high, and valuation multiples are attractive.

The most important asset of cybersecurity software vendors is their technology, of course. Next is customer relations.

The trademark plays a minor role. It is noteworthy that the average useful life of cybersecurity trademarks stands at 5.9 years only. The median trademark royalty rate is 1.8% on revenues, and the value of the trademark accounts for 1% of enterprise value.

In addition to trademark related data, MARKABLES offers data on customer relations. From spring 2022, we will add data on software and technology to our data offering.

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