💰 Security, Funded #104 - Fundraising Frenzy, Earnings Exceed, & AI's Non-Tight Tightrope 🤹
A review of cybersecurity funding and industry news from the week of July 24th, 2023.
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:
🚧 Analyzing common cybersecurity startup failures
💼 17 companies secure $324.2M across 12 categories
🔮 Cybersecurity earnings beat estimates, despite varied guidance
💰 Micro-rally ongoing: AI, acquisitions, and non-tight quantitative tightening
It’s starting to look like A Tale of Two Cybers out there.
On one hand, we’ve got trending toward a “return to normalcy.” Buyer expectations, sales pipelines, VC funding, and increased acquisitions are starting to become the norm again. Sales are picking back up, bets made last year in the federal space are starting to pay off, and investors are starting to feel more optimistic about the rest of the year.
On the other hand, however, we’ve got stagnation and decline. Earlier this year, I wrote about the K-Shaped Recovery of the Cybersecurity Industry, and we are just now starting to see this play out. Not everyone is fairing so well, and the market will make them pay for that.
Onward to this week's issue.
🔮 Earnings Reports
A section for notable earnings reports from public cybersecurity companies, be they “pure play” or hybrid companies:
Tenable ($TENB) - beat its earnings estimate, and stock prices surged more than 11% after hours. Tenable accounted for better than expected revenue and growth on the backs of increased US federal sales, customers going for the “platform play,” significant growth in the Operational Technology (OT) security sector, and expanding sales in more countries.
Juniper Networks ($JNPR) - beat its earnings estimate, but it had weaker forward-looking guidance, and that shook investors’ faith in Juniper’s ability to meet guidance in the future. This was mostly driven by a slowdown in cloud sales, which is what propped Juniper up the past two quarters.
Check Point ($CHKP) - beat its earnings estimate with better renewals, better product sales, increased customer engagement, and a slight “rebound” in its US market. Email security and cloud security product offerings led growth this past quarter.
I believe a lot of this discrepancy comes down to the “types” of customers that each of these players sell to. Some types are starting to buy again, and some types are still struggling.
📅 YTD Funding
A rolling 12-week chart to compare funding and acquisitions each week between 2022 and 2023.
We’re seeing a bit of a micro-rally right now from a combination of AI-driven funding rounds and acquisitions and quantitative tightening that’s not all that tight.
I’m now also tracking acquisitions week over week and year over year. This will be an interesting one to track, given 2022 falling off a cliff this time last year and 2023 getting to “we are so back” right about now. Shoutout to Josh Trup from Nauta Capital for the inspo on this one!
💰 Funding Summary
17 companies raised $324.2M across 12 unique product categories
4 companies were acquired or had a merger event for $3.6B across 3 unique product categories
🧩 Funding By Product Category
$150.0M for Data Privacy across 1 deal
$66.9M for Machine Learning (ML) Security across 2 deals
$60.0M for Physical Security across 1 deal
$21.5M for Fraud and Financial Crime Protection across 2 deals
$10.0M for SaaS Security Posture Management (SSPM) across 1 deal
$7.0M for Threat Intelligence across 2 deals
$6.4M for Cybersecurity Mesh Architecture (CSMA) across 1 deal
$2.0M for Managed Security Services Provider (MSSP) across 1 deal
$200.0K for Security and Compliance Automation across 1 deal
$150.0K for Data Protection across 2 deals
An undisclosed amount for Threat Detection and Response (TDR) across 1 deal
An undisclosed amount for Identity and Access Management (IAM) across 2 deals
🏢 Funding By Company
🌎 Funding By Country
$223.2M for United States across 11 deals
$60.0M for Canada across 1 deal
$33.4M for Israel across 3 deals
$5.5M for Germany across 1 deal
$2.0M for Australia across 1 deal
🤝 Mergers & Acquisitions
📚 Great Reads
12 ways to fail a cybersecurity startup - Analyzing the most common reasons cybersecurity startups fail and how to prevent that from Ross Haleiuk.
*How real-time SBOMs filter vulnerability noise - Engineers hate tickets from security. Prioritize CVEs to avoid investigations tied to code not running. Real-time context helps your team focus on code actually executing, then tie it back to the source.
What’s the difference between Product Security and Application Security? - Tanya Janca discusses the key differences between Product Security and Application Security and highlights the roles, responsibilities, skills, and knowledge that Product Security professionals need to be successful.
A framework to securely use LLMs in companies - Part 1 of a multi-part series from Sandesh Anand on using LLMs securely within your organisation. This post provides a framework to categorize risks based on different use cases and deployment types.
*Sponsored content and/or affiliate link.
✨ Life is what happens between [initial training] and [fine-tuning].
𝙇𝙞𝙫𝙚, 𝙇𝙖𝙪𝙜𝙝, 𝙇𝙖𝙧𝙜𝙚 𝙇𝙖𝙣𝙜𝙪𝙖𝙜𝙚 𝙈𝙤𝙙𝙚𝙡
— Mike Privette (@mikepsecuritee)
Jul 15, 2023
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