💰 Security, Funded #149 - Economic Shifts & Cyber Drifts

Insights for the week of June 17, 2024

Security, Funded is a weekly deep dive into cybersecurity funding and industry news captured and analyzed by Mike Privette. This week’s issue is presented together with Tines and iVerify.

Hey there,

I hope you had a great weekend! I spent part of last week in Marseille, France, for a conference and got to enjoy the Summer Solstice while writing this issue. That’s definitely not a sentence I ever imagined I would write, but it was super cool to be able to do it!

I always try to keep an eye and ear on economic trends as I travel to different parts of the world. Since I was at a conference mostly made up of cybersecurity practitioners, consulting companies, and vendors from around Europe, I was in the right place to observe my two favorite things: where cybersecurity and economics meet.

I’ve noticed that the major world economies are showing a divergent trend. The UK reported economic data that shows it had exited a recession and has the highest growth in the last three years and the European Central Bank cut rates. Meanwhile, in the US, people are still trying to figure out what JPow is saying and if there will be a rate cut at all. ¯\_(ツ)_/¯

On the cybersecurity front, I expect these shifting tides to also start creating more geographic expansion and increased sales opportunities for cyber companies outside of the US. Time to get your passports ready, folks. 🛂 🛫 

And with that, we are at the halfway point of 2024. 😳 

Onward to this week's issue.

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😎 Vibe Check

How do you anticipate the economic climate will impact your cybersecurity strategy in the next 12 months?

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Last issue’s vibe check:
Did you have it on your 2024 BINGO card that Lacework would be acquired by Fortinet?
⬜️⬜️⬜️⬜️⬜️⬜️ 🧠 Yep (3)
🟩🟩🟩🟩🟩🟩 🧐 Nope (36)
39 Votes

Most of us didn’t have the Big Brain Energy™️ to manifest this kind of destiny with Fortinet buying Lacework. It shows that late-stage cyber companies still have moves to make and that strength can come from unexpected places on the M&A front. I’m looking forward to the next earnings call to see how this move is really perceived by the street.

💰 Market Summary

  • 11 companies raised $377.2M across 8 unique product categories in 5 countries

  • 3 companies were acquired or had a merger event across 3 unique product categories

  • 82% of funding went to product-based cybersecurity companies

  • No public cyber company had an earnings report

📸 YoY Snapshot

This is a rolling 12-week chart comparing funding and acquisitions each week in a year-over-year (YoY) view between 2023 and 2024.

Funding continues at a healthy clip this year as late-stage rounds keep coming week over week. Last year's funding this week was one of the lowest weeks of 2023, at just $18 million when the industry was still coming to grips with the realities of continued high interest rate periods and layoffs all around.

A bit of a rollercoaster these past few weeks on M&A volume. With only one week left to go in Q2 2024, M&A activity will likely surpass Q2 2023.

🤙 Earnings Reports

Here are notable earnings reports from public cybersecurity companies. This section is Powered by Quartr, where I track all the latest earning reports.

Earnings reports this week: None

See the public cyber company tracker, which shows all public cybersecurity companies worldwide, along with market data, funding raised, product categories, and more.

🧩 Funding By Product Category

  • $150.0M for Managed Detection and Response (MDR) across 2 deals

  • $125.0M for Threat & Vulnerability Management (TVM) across 1 deal

  • $57.7M for Data Protection across 2 deals

  • $18.0M for Artificial Intelligence (AI) Security across 1 deal

  • $13.8M for Secure Remote Access across 1 deal

  • $8.7M for Secure Infrastructure across 1 deal

  • $4.0M for Artificial Intelligence (AI) Governance across 1 deal

  • An undisclosed amount for Managed Security Services Provider (MSSP) across 2 deals

🏢 Funding By Company

🌎 Funding By Country

  • $292.8M for the United States across 5 deals

  • $39.7M for the United Kingdom across 2 deals

  • $36.0M for Israel across 2 deals

  • $8.7M for Italy across 1 deal

  • An undisclosed amount for Australia across 1 deal

🤝 Mergers & Acquisitions

  • Camms, an Australia-based governance, risk, and compliance (GRC) platform, was acquired by Riskonnect for an undisclosed amount. (more)

  • Nuspire Networks, a United States-based managed security services provider (MSSP), was acquired by PDI Technologies for an undisclosed amount. (more)

  • Quod Orbis, a United Kingdom-based continuous controls and framework monitoring platform, was acquired by Deda Group for an undisclosed amount. (more)

📚 Great Reads

*A message from our sponsor

🧪 Labs

“sEcUrItY iS oUr tOp PrIoRiTy”

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Data Methodology and Sources

  • All of the data is captured point-in-time from publicly available sources.

  • All financial figures are converted to U.S. dollars (USD) when collected.

  • Company country locations are pulled from publicly available sources.

  • Companies are categorized using our system at Return on Security, and we write all the company descriptions.

  • Sometimes, the details about deals, like who led the round, how much money was raised, or the deal stage, might get updated after the issue is first published.

  • Let us know if you spot any errors, and we’ll fix them.

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Return on Security is all about breaking down the cybersecurity industry for you with expert analysis, hard facts, and real-life stories. The goal? To keep security pros, entrepreneurs, and investors ahead in a fast-moving field. Read more about the “Why” here.

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