💰 Security, Funded #139 - Custard Tarts and Valuations

Hey there,

I hope you had a great weekend!

I was on holiday last week in Portugal for the first time, and it was great. The weather was incredible, and there was a lot to see and learn about. Thanks to everyone who shared their favorite places to visit, eat, and drink!

Onward to this week's issue.

😎 Vibe Check

Last issue’s vibe check:
How much time are you spending educating your executive team on AI and Security?
🟨🟨🟨⬜️⬜️⬜️ 😬 Not really at all
🟩🟩🟩🟩🟩🟩 🙂 Small portion of my time
🟨🟨⬜️⬜️⬜️⬜️ 😫 Medium portion of my time
🟨⬜️⬜️⬜️⬜️⬜️ 😵‍💫 It's all I do now (2)

Surprising results from last week. Despite being the only topic in the news, most people who responded to this poll are only using a small portion of their time or not that much at all to educate their executive team on AI and Security. It could be that it’s already well covered elsewhere, or it could be that things are moving and changing so fast that people aren’t really trying to keep up with it.

My favorite comment from last week:

“I know there's lots of noise. I'm just trying to trap the worst of it.”

💰 Market Summary

📸 YoY Snapshot

Sometimes, it’s all about the announcement timing. While last week appeared to be down in the dumps, this week is riding sky-high. We are currently within reach of the upcoming RSA Conference in the US, so deal announcements are ratcheting up. 🚀 

It was a strong week for services-based businesses on the funding and M&A front. With all of the high-price-tag acquisitions happening, it has become common to refer to what the acquired company was previously valued at as a sort of success measuring stick. I think this association needs to be paused for a while.

While I think this can sometimes be a useful metric, if a company raised money in the last 4-5 years, those old valuations no longer represent today’s reality. Valuations of 2019-2022 (and earlier) were figments, mirages, and specters. The past was the past, and the future hit everyone square in the mouth in the second half of 2022. Forget what happened in the ZIRP era and focus on the future.

🤙 Earnings Reports

🧩 Funding By Product Category

• $300.0M for Data Security Posture Management (DSPM) across 1 deal

• $150.0M for Data Protection across 1 deal

• $28.0M for Security Analytics across 1 deal

• $22.0M for Security Operations across 2 deals

• $20.0M for Trust & Safety across 1 deal

• $20.0M for Security and Compliance Automation across 1 deal

• $15.3M for Professional Services across 1 deal

• $8.0M for Data Access Governance across 1 deal

• $4.0M for Managed Security Services Provider (MSSP) across 1 deal

• $3.3M for Artificial Intelligence (AI) Governance across 1 deal

• $3.0M for Data Privacy across 1 deal

• An undisclosed amount for Operational Technology (OT) Security across 1 deal

• An undisclosed amount for Connected and Autonomous Vehicle Security (CAVS) across 1 deal

🏢 Funding By Company

• Cyera, a United States-based data security posture management (DSPM) platform, raised a $300.0M Series C from Coatue. (more)

• Cohesity, a United States-based data protection and disaster recovery platform, raised a $150.0M Series F from NVIDIA and IBM. (more)

• ONUM, a Spain-based security analytics and data observability platform, raised a $28.0M Series A from Dawn Capital. (more)

• Alethea, a United States-based trust and safety platform focused on disinformation mitigation, raised a $20.0M Series B from Google Ventures. (more)

• Sprinto, an India-based security and compliance automation platform, raised a $20.0M Series B from Accel. (more)

• Andesite AI, a United States-based professional services firm focused on national security and cyber defense readiness, raised a $15.3M Seed from Red Cell Partners and General Catalyst. (more)

• StrikeReady, a United States-based contextual awareness and collaboration platform for security operations, raised a $12.0M Series A from 33N Ventures. (more)

• Simbian, a United States-based custom Large Language Model (LLM) designed for security operation activities, raised a $10.0M Seed from Cota Capital, Icon Ventures, and Rain Capital. (more)

• PVML, an Israel-based data access governance and protection platform, raised an $8.0M Seed from NFX. (more)

• Ostra Cybersecurity, a United States-based managed security services provider (MSSP), raised a $4.0M Series A from Rally Ventures. (more)

• Knostic, an Israel-based identity and access management (IAM) platform for using GenAI applications and LLMs, raised a $3.3M Seed from Shield Capital, Pitango VC, DNX Ventures, and Seedcamp. (more)

• Nymiz, a Spain-based privacy platform focusing on GDPR regulations, raised a $3.0M Seed from Swanlaab Venture Factory. (more)

• Salvador Technologies, an Israel-based operational technology (OT) security platform focused on resiliency and recovery, raised an undisclosed Seed from Hubraum. (more)

• Upstream Security, an Israel-based security platform for connected and autonomous vehicle (CAVS) fleets, raised an undisclosed Venture Round from Cisco Investments. (more)

🌎 Funding By Country

• $511.3M for the United States across 7 deals

• $31.0M for Spain across 2 deals

• $20.0M for India across 1 deal

• $11.3M for Israel across 4 deals

🤝 Mergers & Acquisitions

• Btech, a United States-based managed security services provider (MSSP), was acquired by Secur-Serv for an undisclosed amount. (more)

• Connetical, an Italy-based professional services firm focused on IoT, ICS, and network security services, was acquired by Planetel for an undisclosed amount. (more)

• Foghorn Consulting, a United States-based professional services firm focused on cloud migration and security, was acquired by nClouds for an undisclosed amount. (more)

• Ipseity Security, a Canada-based professional services firm focused on cyber resiliency consulting, was acquired by CYDERES for an undisclosed amount. (more)

• Siveb, a Finland-based professional services firm focused on cyber risk assessments, was acquired by Fogmaker for an undisclosed amount. (more)

📚 Great Reads

• A Letter from the Future - A futuristic short story from Phil Venables that is something like a Neal Stephenson cyberpunk novel from a not-so-distant future where cyber and physical conflicts are intertwined.

• *Defrosting Snowflake SIEM Cost Factors: How does Snowflake perform against the top 8 SIEM cost factors security teams should consider? Data lakes are dramatically more cost-effective and scalable than all-in-one SIEM alternatives. This post breaks it down.

• The Joy and Pain of Coding with AI When You Suck at Coding - Daniel Jeffries shares the trials and tribulations he had when he set out to create a complex application as someone who is not a developer. It's a really interesting read for coders and non-coders alike.

• Robots Dream of Root Shells—Ben Hawkes discusses the evolution of AI in cybersecurity, focusing on the DARPA competitions CGC and AIxCC, which aim to use AI to find and fix security vulnerabilities autonomously.

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🧪 Labs

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