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Cybersecurity companies have about 156 million reasons to smile about Scott Morrison’s election.

Earlier in the election campaign just past, the Morrison Government pledged $156 million in funding to create jobs and provide training in the burgeoning sector.

And there are about 10 stocks listed on the ASX that offer investors a rare exposure to the space, which some research suggests could be worth as much as $433 billion by halfway through the next decade.


  • Prior to winning re-election in mid-May, the Morrison government announced $156 million in funding for cybersecurity
  • The sector is growing at a compound annual growth rate of 12 per cent
  • The ASX offers investors exposure to a range of cybersecurity stocks

The funding is to be spread over several areas, including the creation of a cybersecurity national workforce growth program ($50 million), new capabilities for countering foreign cyber criminals ($40 million), further support for the Australian Cyber Security Centre ($26 million) and $40 million dedicated to the Australian Defence Force to grow its cyber warfare workforce, creating 230 new positions for military cyber specialists over the next four years.

“As the risk of cyber attack increases we need to ensure Australians are protected and our defence forces, and capabilities continue to get the backing they need,” Prime Minister Scott Morrison said.

“We will continue to take a proactive approach against cyber criminals at home and overseas  including scammers, fraudsters and those involved in child exploitation.”

A report by the Australian Computer Society last year revealed that Australia requires 11,000 additional technical cyber security workers over the next decade.

For investors hoping to benefit from the growing industry, the ASX offers several small cap companies with exposure to the field.

archTIS (ASX:AR9) is a cybersecurity trust company specialising in the design and development of products, solutions and services for secure information sharing and collaboration.

This week its Kojensi Gov platform, which is being used during the Aged Care Royal Commission, was added to the Digital Transformation Agency’s (DTA) Cloud Services Panel (CSP) as an endorsed cloud product.

Tesserent (ASX:TNT) provides “security-as-a-service” for a customer’s computer infrastructure, including firewall, authentication, anti-virus, spyware, intrusion detection, and security event management.

US-based WhiteHawk (ASX:WHK) offers a cloud-based cyber security exchange platform that delivers virtual consultations.

Its cyber risk advisory service is being used by a range of US governmental agencies and departments.

Cyber security is not just a new thing, either: Prophecy International (ASX:PRO) has been around for three decades.

Its cybersecurity product Snare is a highly scalable platform designed to find, filter and forward event log data.

PS&C (ASX:PSZ) similarly is multi-pronged in the online space, the security business complementary to its contractor management and communication targets.

The company targets banking and finance as well as government and professional services, legal, sports betting with its ‘HackLabs’, ‘Securus Global’, ‘Pure Hacking’ and ‘Certitude’ offerings.

Covata (ASX:CVT) is all about securing data for government and big business.

It also provides data discovery, transparent data encryption, centralised permission management and activity logging for sensitive and regulated information in SharePoint.

Israel-based Elsight (ASX:ELS) targets special forces and requirements “behind enemy lines”.

It provides “video and data capturing, recording and transmission for  tactical security and surveillance purposes — including wearable and portable devices, vehicle mounted and wall-mounted devices”.

The platform supports video capturing, recording, and high secured transmission against video interception and hacking.

Senetas (ASX:SEN) similarly targets government and technology service provides to provide encryption hardware and virtualised encryption.

And there are three companies focused on giving families peace of mind when it comes to cybersecurity: Family Zone (ASX:FZO)Family Insights (ASX:FAM) and kids smartwatch maker MGM Wireless (ASX:MWR).


Star Investing has a commercial partnership with some companies mentioned in this article. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.