July 2024 Cybersecurity Market Update & Trends

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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Table of Contents

• By the Numbers

• Global Distribution

• Mergers & Acquisitions

• Top Content For the Month

• Return on Security Newsletter Issues

• Data Methodology and Sources

By the Numbers

July 2024 snapped a four-month heat streak of cybersecurity companies raising at least $1 billion worldwide. However, July typically sees fewer investments in the cybersecurity industry, and this year's July numbers are down compared to 2023 and 2022.

July 2024 cybersecurity funding was distributed across 50 events in 34 unique product categories, with Software Supply Chain Security, Security and Compliance Automation, and Mobile Device Management (MDM) leading the way.

Here is a breakdown of funding events by product category:

Global Distribution

In July 2024, the cybersecurity sector witnessed less variation in global investment activity compared to previous months, with companies from 12 different countries securing funding.

American companies continued to lead the space, capturing 64% of the total funding, which amounts to $831 million, across 32 events. Israel came in second, accounting for 10% of the total global funding, equivalent to $58 million, for five events.

Mergers & Acquisitions

Merger and acquisition activity continued to decline from the previous month. In July 2024, there were 17 transactions, none of which had a publicly listed price or valuation.

Services-based businesses remained dominant in cybersecurity M&A in July 2024, constituting 71% of transactions.

Top Content For the Month

Some of my favorite Great Reads and other content from this past month that you might have missed.

• Palo Alto isn’t going to buy everyone: the anatomy of cybersecurity startup exits

• The Global AI Arms Race

• You could learn a lot from a CIO with a $17B IT budget

• RAID (Real World AI Definitions)

Return on Security Newsletter Issues

Here are the past weekly newsletters from this month.

• Security, Funded #151 - From Spain with Vermouth

• Security, Funded #152 - We Just Might Be So Back

• Security, Funded #153 - You've Been CrowdStruck

• Security, Funded #154 - Nobody Beats the Wiz

Data Methodology and Sources

• All of the data is captured point-in-time from publicly available sources.

• All financial figures are converted to U.S. dollars (USD) when collected.

• Company country locations are pulled from publicly available sources.

• Companies are categorized using our own system at Return on Security, and we write all of the company descriptions.

• Sometimes, the details about deals, like who led the round, how much money was raised, or the deal stage, might get updated after the issue is first published.

• Let us know if you spot any errors, and we’ll fix them.

About Return on Security

Return on Security is all about breaking down the cybersecurity industry for you with expert analysis, hard facts, and real-life stories. The goal? To keep security pros, entrepreneurs, and investors ahead in a fast-moving field. Read more about the “Why” here.

Feel free to borrow any data, charts, or advice you find here. Just make sure to give a shoutout to Return on Security when you do.

Thank you for reading. If you liked this summary, please share it with your friends, colleagues, and anyone interested in the cybersecurity market.

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