💰 Security, Funded #119 - Navigating the Cyber Seas: Funding Ebb, M&A Flow 🌊
A deep dive on cybersecurity funding and industry news from the week of November 6th, 2023.
Happy Monday, and I hope you had a great weekend. In this week’s issue, we’ve got:
📉 Funding's Dip, M&A's Grip
💰 $93.5M raised from 15 companies
🌍 Global Cyber Moves: From USA to UAE
📚 From Cyber Caricatures to AGI Futures: A Reading Adventure
The cybersecurity landscape continues to evolve in the face of global macroeconomic shifts.
While some companies wrap up their spending for the year, others are actively seeking year-end deals. This cautious spending behavior suggests a mindful approach in a recovering economy. The industry is also witnessing a notable decline in funding compared to previous weeks, yet mergers and acquisitions remain strong, indicating a strategic consolidation in the market.
Even still, as the industry navigates through these changes, the focus remains on adopting advanced technologies like AI, balancing security needs with economic realities. Let’s get this bread 🥖
Onward to this week's issue.
Vibe Check - Hiring Santa Rally?
Has hiring for cybersecurity talent rebounded for your company yet?
Last week’s vibe check:
As the year winds down, are you looking to spend excess budget now, or are you already pushing to next year?
Last week 60% of people said that they were done spending for the year, but that still leaves a healthy 40% that is still looking for year-end deals. Companies are still spending cautiously and need to make sure their investments are worth the trouble, but there are signs of a broader economic rebound(ish) coming into 2024. Your move cyber vendors 😤
🔮 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 Snapshot
A rolling 12-week chart to compare funding and acquisitions each week between 2022 and 2023.
Last week marked a ~61% drop in the previous 12-week rolling average in funding. This is quite a stark change from the high-flying numbers from the last few weeks.
Still a relatively strong with on the M&A front last week, and we are currently ~14% shy of the total M&A activity from 2022.
💰 Funding Summary
15 companies raised $93.5M across 12 unique product categories
6 companies were acquired or had a merger event across 5 unique product categories
🧩 Funding By Product Category
$35.0M for Data Protection across 1 deal
$20.1M for Software Supply Chain Security across 3 deals
$8.0M for Managed Security Services Provider (MSSP) across 1 deal
$6.8M for Threat Detection and Response (TDR) across 2 deals
$5.0M for Threat Informed Defense (TID) across 1 deal
$4.3M for Brand Protection across 1 deal
$4.0M for Artificial Intelligence (AI) Security across 1 deal
$4.0M for Artificial Intelligence (AI) Privacy Assurance across 1 deal
$3.6M for Attack Surface Management (ASM) across 1 deal
$2.4M for Threat Intelligence across 1 deal
$336.3K for Hardware Security across 1 deal
An undisclosed amount for Professional Services across 1 deal
🏢 Funding By Company
CAST AI, a United States-based AI-driven cloud cost optimization and disaster prevention platform, raised a $35.0M Series B from Creandum, Uncorrelated Ventures, and Vintage Investment Partners. (more)
Synergy ECP, a United States-based professional services firm focused on software engineering and cybersecurity for the US intelligence community, raised an undisclosed Private Equity Round from Falfurrias Capital Partners. (more)
🌎 Funding By Country
$57.3M for United States across 7 deals
$12.3M for India across 3 deals
$7.7M for United Kingdom across 1 deal
$6.0M for Israel across 1 deal
$4.3M for Ireland across 1 deal
$3.6M for Canada across 1 deal
$2.3M for Saudi Arabia across 1 deal
🤝 Mergers & Acquisitions
Krebs Stamos, a United States-based professional services firm focused on cybersecurity advisory, was acquired by SentinelOne for an undisclosed amount and formed a new company named PinnacleOne. (more)
📚 Great Reads
Caricatures of Security People - Phil Venables provides a tongue-in-cheek exploration of different caricatures within the security industry, outlining 16 distinct types of security roles, from a self-appointed thought leader to a cyber-savvy board member, each with its own humorous descriptions and typical sayings.
*The Critical Interplay of Cyber Resilience and IAM Resilience - In an age of increasing digital threats, understanding and differentiating between Cyber Resilience and Identity and Access Management (IAM) Resilience becomes paramount.
Why We'll Have AGI by 2025-2028 - Daniel Miessler talks about why he believes we will have Artificial General Intelligence (AGI) much sooner than many people think and what it may mean.
The Importance of Key Rotation - Olivia Gallucci talks about how key rotation enhances the security of application programming interfaces (APIs)—emphasizing the necessity of key rotation alongside the conventional practice of identifying and deleting leaked secret keys—to mitigate security risks and ensure the long-term integrity of digital systems.
*Sponsored content and/or affiliate link.
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How was this week's newsletter?