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πŸ“Š Cybersecurity Funding Review - October 2022

Cybersecurity Funding Review - A lookback at what moved the cybersecurity market in October 2022.

Mike P
Mike P

Table of Contents

It's that time again.

Each month I do a recap of cybersecurity funding and M&A stats by the numbers with visuals. I often tweak these reports month-to-month based on commentary and feedback I get from readers like you.

I build these reports each month from the data I collect each week from the Security, Funded newsletter.

If you're not signed up yet, make sure you get in on the most reliable and detailed resource for cybersecurity investing and M&A news on the Internet. πŸ‘‡


By the Numbers

A look at what moved the private cybersecurity market in October 2022 by the numbers.

  • Approximately $2.1B was invested in 65 cybersecurity companies across 40 unique product categories in October 2022, up from the $1.37B in September 2022.
  • Seed round deals accounted for 19 events totaling $121.8M.
  • 76% of funding went to United States-based companies.
  • 23 companies across 12 unique product categories were acquired or had a merger event to the tune of $6.9B in publicly available data.
  • Managed Security Services Provider (MSSP) and Professional Services companies were the most acquired category of company with 5 transactions each.

My Thoughts and Predictions

  • October saw a continuation of September's run of increased deals and terms in the cybersecurity market with a few major acquisitions.
  • Buyers of cybersecurity products are still cashed strapped like last month and will be for the rest of 2022. Customers will be continuing to look for products that don't create too much churn to bring into their environment. Meet your potential customers where they are.
  • The convergence of Breach and Attack Simulation (BAS) and Attack Surface Management (ASM) is becoming more of the norm, and we'll see more of this happen throughout the rest of 2022.
  • Overall private transaction volume and check size will get even bigger in November because public cybersecurity returns keep beating the market.
  • More acqui-hires will take place through the rest of this year of smaller and regional MSPs, MSSPs, and Professional Services companies. Tech layoffs and customers with tighetened budgets will lead to decreased margins for services-based businesses. This will lead to additional differentiation efforst and ultimately a consolidation of talent in this space.

Top Funded Product Categories

  • $410.0M for Breach & Attack Simulation (BAS)
  • $401.0M for Security Operations
  • $120.0M for Secure Access Service Edge (SASE)
  • $107.5M for Remote Browser Isolation
  • $95.0M for Data Privacy

Top Funded Industries

  • $2.0B for No Industry
  • $20.0M for Insurance
  • $20.0M for Critical Infrastructure and Energy
  • $4.2M for Web3

Top Lead Investor Teams

  • $476.0M for Owl Rock Capital
  • $410.0M for KKR
  • $189.2M for Unknown (meaning not publicly listed)
  • $120.0M for BlackRock, Silicon Valley Bank
  • $85.3M for Jolt Capital

Top Funded Countries

  • $1.6B for United States
  • $100.0M for Hong Kong
  • $99.0M for France
  • $83.5M for Israel
  • $82.4M for United Kingdom

Top Acquired Product Categories


Data Collection Methodology

A few tenants I follow for collecting and creating this data:

  • I only use public data sources
  • I evaluate each company that makes this list to make sure they are actually solving a cybersecurity problem
  • I personally assign the product category for each company (regardless of what the marketing says)
  • All monetary values are in U.S. dollars and are converted, if needed, at the time of collection
  • All monetary values are from the time of collection

Wrapping Up

If you liked a chart, statement, or prediction I made, let me know. If you want me to dig in further on something or see the data sliced a different way, let me know.

Likewise if you don't like something or something doesn't make sense, let me know. I do this to contribute something new and add value to the industry so I want to make sure I'm also taking feedback.

See you again next month!

Cheers,

Mike P

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