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  • 💰 Security, Funded #113 - Funds Flow, CISOs Go, Cyber's Never-Ending Show 🎪

💰 Security, Funded #113 - Funds Flow, CISOs Go, Cyber's Never-Ending Show 🎪

A review of cybersecurity funding and industry news from the week of September 25th, 2023.

Hey there,

Happy Monday, and I hope you had a great weekend. This week, we’ve got:

  • 🪦 Shut’em down but don’t open up shop

  • 🏃‍♂️ CISOs stressed, pondering job changes

  • 💰 13 companies raise $193.6M, 5 acquired

  • 📚 Unpacking the future of cybersecurity data

And that’s a wrap for Q3 2023! There have been some big moves that happened to close out Q3, and now we wait to watch the fireworks for Q4.

Onward to this week's issue.

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Vibe Check - Bad Terms

Which cybersecurity product acronym do you hate more?

Login or Subscribe to participate in polls.

Last week’s poll:

Vibe Check - CISOs
Do you think more CISOs are looking to leave the job market now than ever?

61% of respondents said they thought that more CISOs either want less stress or want to do something completely different. While it’s still an undeniable destination role for many people, you can’t ignore the systematic signs of stress that this role has taken on in the last 2-3 years.

If you want to add commentary to your poll answer, leave an answer when you cast your vote or email me at [email protected]. 

🔮 Earnings Reports

A section for notable earnings reports from public cybersecurity companies, be they “pure play” or hybrid companies.

No public earnings calls to report on from last week! 🫡

📅 YTD Funding

A rolling 12-week chart to compare funding and acquisitions each week between 2022 and 2023.

Although this week in funding is ~42% less than the rolling 12-week average, Q3 2023 is up ~30% over Q3 2022. Even still, YTD for 2023 is down ~31% from the peak of hype ⛰️ in 2022, which had a record-breaking Q1 and Q2. I’m excited to see if Q4 2023 comes in hot starting next week! 🔥 

Nothing major on the acquisition front this week, just a steady clip of services and product-led businesses. I know there is some hype about some big moves out there, but I don’t like talking about those “Company A might be acquiring Company B” potential deals because they are just noise. Hit me up when you sign that term sheet 📲 

💰 Funding Summary

  • 13 companies raised $193.6M across 11 unique product categories

  • 5 companies were acquired or had a merger event across 5 unique product categories

  • 1 company shut down

🧩 Funding By Product Category

  • $100.0M for Secure Remote Access across 1 deal

  • $30.8M for Threat Intelligence across 3 deals

  • $23.0M for Threat Detection and Response (TDR) across 1 deal

  • $15.0M for Endpoint Detection and Response (EDR) across 1 deal

  • $10.6M for Security Orchestration and Automated Response (SOAR) across 1 deal

  • $10.0M for Digital Rights Management (DRM) across 1 deal

  • $3.3M for Fraud and Financial Crime Protection across 1 deal

  • $500.0K for Cyber Risk Quantification across 2 deals

  • $500.0K for Confidential Computing across 1 deal

  • $10.0K for Cybersecurity Education & Training across 1 deal

  • An undisclosed amount for Managed Security Services Provider (MSSP) across 1 deal

🏢 Funding By Company

  • Nord Security, a Lithuania-based secure VPN platform (makers of the popular NordVPN), raised a $100.0M Venture Round from Warburg Pincus. (more)

  • Lumu, a United States-based threat intelligence platform using DNS to determine potential compromises, raised a $24.0M Series B from Forgepoint Capital and a $6.0M Debt Financing round for a total of $30.0M. (more)

  • Gem, a United States-based cloud threat detection and response (TDR) platform, raised a $23.0M Series A from GGV Capital. (more)

  • Vali Cyber, a United States-based endpoint detection and response (EDR) platform focused on Linux, raised a $15.0M Seed from 412 Venture Fund and Grotech Ventures. (more)

  • Nexusflow, a United States-based security orchestration and automated response (SOAR) with an AI copilot, raised a $10.6M Seed from Point72 Ventures and Fusion Fund. (more)

  • EchoMark, a United States-based digital rights management (DRM) platform using document watermarking, raised a $10.0M Seed from Craft Ventures. (more)

  • Verisoul, a United States-based fake user detection and protection platform, raised a $3.3M Seed from BITKRAFT Ventures. (more)

  • Cypherleak, a United States-based cyber threat intelligence platform, raised a $750.0K Seed from Maroc Numeric Fund. (more)

  • USEncryption, a United States-based confidential computing platform, raised a $500.0K Pre-Seed round.

  • Zeron, an India-based cyber risk quantification platform, raised a $500.0K Seed from Varanium Capital Advisors. (more)

  • CTFGuide, a United States-based cybersecurity education platform, raised a $10.0K Pre-Seed from Bullmont Capital.

  • Rankiteo, a United Kingdom-based cyber risk quantification platform, raised an undisclosed Seed round.

  • RealDefense, a United States-based managed security services provider (MSSP), raised an undisclosed Debt Financing round. (more)


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🌎 Funding By Country

  • $100.0M for Lithuania across 1 deal

  • $93.1M for United States across 11 deals

  • $500.0K for India across 1 deal

  • An undisclosed amount for United Kingdom across 1 deal

🤝 Mergers & Acquisitions

  • Awen Collective Ltd, a United Kingdom-based operational technology (OT) security platform, was acquired by Sapphire for an undisclosed amount. (more)

  • Darkbeam, a United Kingdom-based third-party supplier risk management platform, was acquired by APEX Analytix for an undisclosed amount. (more)

  • Regatta, a United States-based professional services firm focused on identity and access management (IAM) services, was acquired by ProofID for an undisclosed amount. (more)

  • Scientific Software & Systems, a New Zealand-based managed security services provider (MSSP), was acquired by Acheron Capital for an undisclosed amount. (more)

  • Vector0, a United States-based attack surface management (ASM) platform, was acquired by Stratascale for an undisclosed amount. (more)

🪦 Rest in P(Shareholder Value) 🆕 

Companies that stopped, dropped, shut ‘em down but just couldn’t open up shop anymore 😔 

  • IronNet Cybersecurity, a United States-based network detection and response (NDR) platform, closed its doors after 9 years in operation after raising $427.6M in funding over 6 rounds and going public in 2021. (more)

📚 Great Reads

  • Future of Cybersecurity Data Stack: Trends & Players - Ross Haleliuk explores how various approaches are tackling the issue of security data. Get insights into the trends and key players shaping the cybersecurity data stack of the future.

  • *Cyber Venture Forum - Join Blu Ventures on October 19 for a day of networking and thought leadership with 400+ startups, investors, and others from the Cybersecurity, DeepTech, GovCon, and broader innovation community. Use code SECURITYFUNDED for a 20% ticket discount!

  • Threat Intelligence Category & Market Breakdown - Some of my own writing - Everything you need to know about Threat Intelligence. As the digital landscape evolves, threat intelligence has become vital for organizations to stay ahead of adversaries.

  • Everything You Can't Predict - Something a bit different this week that is tech adjacent from a newsletter I've long been a reader of - Trends are easy. The winners of those trends? Not so much.

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🧪 Labs

They’ll let anyone publish books these days!

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