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.
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I build these reports each month from the data I collect each week from the Security, Funded newsletter.
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Know what's moving the market in cybersecurity.
By the Numbers
A look at what moved the private cybersecurity market in September 2022 by the numbers.
Approximately $1.37B was invested in 53 cybersecurity companies across 32 unique product categories in September 2022, nearly double the $685.4M in August 2022.
Physical Security was the highest funded category totaling $205.0M
Seed rounds had the most volume with 16 events raising $136.8M.
65% of funding went to United States-based companies, a 20% increase from August 2022.
25 companies across 15 unique product categories were acquired or had a merger event to the tune of $17.9M in publicly available data.
Managed Security Services Provider (MSSP) companies were the most acquired category of company with 6 transactions.
My Thoughts and Predictions
As predicted back in August, funding rounds started to creep back up in terms up overall check sizes. This correlates to 2021 where towards the latter half of the year, transactions increased in both number and volume.
Physical Security wins this month in terms of overall funding amount. I don't see Physical Security often, but when I do, it normally goes hard in the paint.
Overall private transaction volume and check size will get even bigger in October because public cybersecurity returns keep beating the market.
MSPs and MSSPs will continue to consolidate and Value Added Resllers (VARs) / Value Added Distributors (VADs) will enter the chat when it comes to acquiring MSSPs (They're already selling the products, so why not run them too?).
Cybersecurity companies will try to continue and create new product categories to differentiate so they can be strongly positioned for the onslaught of cyber conferences starting in 2023. This won't work as well as it used to, however. It's not about better marketing, it's about better integration and meeting your customers where they are on their own cash-and-resource-strapped journey.
Top Funded Product Categories
$230.0M for Physical Security
$140.4M for Data Protection
$136.4M for Continuous Compliance
$112.3M for Distributed Ledger Technology (DLT) Security
$101.8M for Identity and Access Management (IAM)
Top Funded Industries
$1.2B was not industry specific
$114.3M for Web3
$51.5M for Financial Services
$14.0M for Insurance
$6.5M for Telecommunications
Top Lead Investor Teams
$205.0M from Linse Capital
$100.0M from Vector Capital
$100.0M from PSG
$90.0M from GS Growth
$70.0M from One Peak Partners
Top Countries Funded
$897.8M for United States
$204.9M for Israel
$65.0M for United Kingdom
$61.8M for Germany
$37.0M for Portugal
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
See you again next month!
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