💰 Security, Funded #101 - Slumpin' and Pumpin': Q2's Cyber Rollercoaster 🎢
A review of cybersecurity funding and industry news from the week of July 3rd, 2023.
Mike Privette
July 10th, 2023
Hey there,
Happy Monday, and I hope you had a great weekend!
🏃♂️ The Rundown
A meta roundup of all the important things affecting cybersecurity and the microenvironment:
🏃♂️ 2023's Q2 Cyber funding slumps
🛞 SEC delays cyber rules enactment
🧨 Blasting the UK’s Online Safety Bill
🤖 AI and Machine Learning Round-Up
📚 Meta’s Threads app is a privacy nightmare
💰 8 firms raised $71.0M in Q2, 10 cyber companies acquired
Onward to this week's issue.
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🔮 Earnings Reports
A section for notable earnings reports from public cybersecurity companies, be they “pure play” or hybrid companies:
None to report on this week! 🫡
🛞 Industry News Roundup
📅 YTD Funding
A rolling 12-week chart to compare funding each week between 2022 and 2023.
Cybersecurity funding globally reached ~$3.0B in the second quarter, a 43% drop year over year and a 2% increase from the especially low Q1 2023. Deal count continued to slump, down ~44% from Q1 2023 to 145 deals.
Here’s a quarter-over-quarter view of the data comparing 2022:
Q2 seemed to only finish slightly up due to the heavy last week of the quarter when those first big AI-driven cyber investments came sliding in sideways.
💰 Funding Summary
8 companies raised $71.0M across 8 unique product categories
10 companies were acquired or had a merger event across 4 unique product categories
🧩 Funding By Product Category
$45.0M for Governance, Risk, and Compliance (GRC) across 1 deal
$13.8M for Managed Security Services Provider (MSSP) across 1 deal
$6.3M for Anti-Malware across 1 deal
$3.0M for Distributed Ledger Technology (DLT) Security across 1 deal
$2.8M for Data Protection across 1 deal
$75.0K for Operational Technology (OT) Security across 1 deal
An undisclosed amount for Fraud and Financial Crime Protection across 1 deal
An undisclosed amount for Artificial Intelligence (AI) Privacy Assurance across 1 deal
🏢 Funding By Company
Unit21, a United States-based no-code governance, risk, and compliance (GRC) platform, raised a $45.0M Series C from Tiger Global Management. (more)
Cyber Kunlun, a China-based managed security services provider (MSSP), raised a $13.8M Series A from Fortune Venture Capital. (more)
Glasswall, a United Kingdom-based anti-malware platform for files, emails, and collaboration platforms, raised a $6.3M Debt Financing round from HSBC. (more)
OlaVM Technology Ltd., a China-based software framework that allows for secure deployments of zero-knowledge (zk) blockchain applications, raised a $3.0M Seed. (more)
Infisical, a United States-based encrypted secrets management platform, raised a $2.8M Seed from Gradient Ventures. (more)
Cynalytica, a United States-based industrial control systems (ICS) security platform, raised a $75.0K Grant from Virginia Innovation Partnership Corporation. (more)
CUBIG, a South Korea-based platform using synthetic data to protect sensitive data usage in AI applications, raised an undisclosed Seed from NAVER D2 Startup Factory. (more)
Magic - ID Network, a United Kingdom-based identity verification and Know Your Customer (KYC) platform, raised an undisclosed Pre-Seed from SFC Capital. (more)
🌎 Funding By Country
$47.9M for United States across 3 deals 🇺🇸
$16.8M for China across 2 deals 🇨🇳
$6.3M for United Kingdom across 2 deals 🇬🇧
An undisclosed amount for South Korea across 1 deal 🇰🇷
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🤝 Mergers & Acquisitions
Cirrus IT Solutions, a United States-based managed security services provider (MSSP), was acquired by The 20 MSP for an undisclosed amount. (more)
Epiphany Systems, a United States-based attack surface management (ASM) platform, was acquired by Reveald for an undisclosed amount. (more)
INCIDE, a Spain-based professional services firm focused on digital forensics and incident response (DFIR), was acquired by Computest for an undisclosed amount. (more)
NEVERHACK (previously Pr0ph3cy), a France-based cybersecurity consulting and upskilling firm, was acquired by The Carlyle Group for an undisclosed amount. (more)
OryxLabs, a United Arab Emirates-based external attack surface management (ASM) platform, was acquired by EDGE Group for an undisclosed amount. (more)
Security Management Partners, a United States-based professional services company focused on cybersecurity consulting, was acquired by GraVoc for an undisclosed amount. (more)
ThreeTwoFour, a United Kingdom-based managed security services provider (MSSP), was acquired by Node4 for an undisclosed amount. (more)
Vestigit, a Poland-based platform protecting against video digital piracy, was acquired by Redge Technologies for an undisclosed amount. (more)
Vital Technology Group, a United Kingdom-based managed security services provider (MSSP), was acquired by Air IT for an undisclosed amount. (more)
Wise Security Global, a Spain-based professional services firm focused on penetration testing and ethical hacking, was acquired by Var Group for an undisclosed amount. (more)
📚 Great Reads
Your Network Matters More Than Your Resume - I was on the eXecutive Security podcast with the CEO of ThreatX, Gene Fay, a few months back, where I talked about how the cybersecurity job market has shifted dramatically in the past two years and my thoughts on navigating it.
Meta’s Threads app is a privacy nightmare and won’t launch in the EU - Information provided about the app’s privacy via mandatory disclosures required on iOS shows the app may collect highly sensitive information about users in order to profile their digital activity — including health and financial data, precise location, browsing history, contacts, search history, and other sensitive information.
AI and Machine Learning in Cybersecurity - An overview of current applications of AI/ML to cybersecurity with relevant links and a vision of where things are headed from Clint Gibler.
🧪 Labs
Meanwhile, the majority of InfoSec Twitter / Bluesky / Mastodon this past week
I’ve been awake for 24 hours comparing social media platforms so you don’t have to.
Here’s what I’ve learned:
I have a problem.
— Douglas A. Boneparth (@dougboneparth)
Jul 6, 2023
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