Cybersecurity Market Update: January 2024 Insights & Trends

Dive into January 2024's cybersecurity market trends, cybersecurity investments, major acquisitions, and global insights.

Welcome to the monthly wrap-up issue of Return on Security, where I’ll cover this month’s most relevant cybersecurity market and funding updates. I spend hours collecting, curating, and analyzing this information every week, so you don’t need to - here we go👇

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January 2024 Highlights

From startups to giants, the cybersecurity landscape is shifting under the weight of innovation and market demands.

  • As expected, January 2024 saw the big bets continuing in AI Security and Security for AI domains. I expect this trend to continue as more funding dollars are poured into this sub-market, more product differentiation occurs, and companies try to perform a balancing act between rapid technology advancements and market sustainability.

  • Another month, another record-setting cybersecurity acquisition. January 2024 saw the second largest cybersecurity company acquisition, with HP acquiring Juniper Networks for $14.0B.

  • January was a month of contradictions, with massive layoffs across several cybersecurity and technology companies combined with big funding and M&A activities across others in the same spaces.

By the Numbers

A look at what moved the cybersecurity market in January 2024:

Funding Insights

Approximately $979.4M was invested in 43 cybersecurity companies across 28 unique product categories in January 2024, with Data Protection and Identity and Access Management (IAM) leading the way.

Mergers & Acquisitions

21 companies across 16 unique product categories were acquired or had a merger event for more than $14.0B in January 2024. Managed Security Services Providers (MSSPs) and Professional Services companies were the most acquired kinds of companies last month.

Global Funding Distribution

80% of cybersecurity funding in January 2024 went to United States-based companies, ~14% went to Israel-based companies, and ~4% went to Denmark-based companies.

My Work

My work from this past month.

This Month’s Top Great Reads

Some of my favorite Great Reads from this past month.

  • 7 Things to Expect From AI in 2024+ - To predict AI's progress, you have to ignore the tech itself and ask what people want from it

  • AI and Trust - Bruce Schneier talks about the intersections of AI, trust, and innate biases as they relate to social, governmental, and technological constructs.

  • Dry January: The Sobering State of Public Markets for Cybersecurity Companies - Being a cybersecurity unicorn feels like a never-ending Dry January right now. It's not as bad as it sounds, I promise.

  • Google Search (and Spam) Really Has Gotten Worse - German researchers found that Google Search has gotten worse and has been taken over by dynamic adversarial spam in the form of low-quality, mass-produced commercial content thanks to the explosion of generative AI content.

  • Regretful Accelerationism - This post highlights the growing disconnect between the physical and online worlds, emphasizing the impacts of AI and the Internet on society, content creation, and human interaction. If you're a fan of the book "Ready Player One," this will be a good read.

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Return on Security Newsletter Issues

Here are the weekly newsletters from this month.

Data Collection Methodology

A few tenants I follow for this data:

  • All of this data was captured point-in-time from publicly available sources, most often at publication, through the Return on Security newsletter.

  • All financial figures were converted to U.S. dollars when collected.

  • The classification of companies into specific categories is conducted based on Return on Security’s categorization system. I ensure that each company in the database addresses a cybersecurity challenge and correctly assign it to the relevant category.

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