💰 Security, Funded #154 - Nobody Beats the Wiz

Get cybersecurity market and intelligence insights, including key trends and industry analysis, for the week of July 22, 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 Outpost24 and Tines.

Hey there,

I hope you had a great weekend!

You may not have known it, but last week’s funding news got a bit lost in the sauce 🍝. With all the continued excitement from the CrowdStrike outage and the hype around Wiz and Google parting ways from a $23 billion acquisition (not to mention the masterclass that Wiz has been putting on since day 1), a rager of a week with late-stage funding went mostly unnoticed.

But that’s what I’m here for! 😎 

In other news, last week joined Aspiron Search’s advisory board (hit them up for your next cyber GTM team!), and I’m looking forward to attending Black Hat in the US next week. I’ll be moderating a panel on innovation driving the security market at the inaugural Innovators & Investors Summit, and I hope to run into many of you there!

Onward to this week's issue.

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😎 Vibe Check

Why do you think the Wiz and Google deal fell apart?

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Last issue’s vibe check:
Do you think the CrowdStrike outage will lead to the merging of more security and IT operations teams under one leader?
🟨🟨⬜️⬜️⬜️⬜️ ✅ Yes (14)
🟨🟨🟨🟨⬜️⬜️ 🚫 Nope (22)
🟩🟩🟩🟩🟩🟩 🤷‍♂️ Ehh, not that simple (33)
69 Votes

Most people who voted last week said things wouldn't be so simple to combine IT operations and security teams following the worst IT outage in history, which just so happened to be caused by a cybersecurity company. I wonder how many of these stories have changed or will change in the coming weeks as we learn more about what led to the outage.

What will be interesting to see is how the street responds to CrowdStrike’s upcoming earnings call, as the company has been trying to move into the IT Operations space for several quarters now. It’s not a good look when you step back. 🤔 

Some of the top comments from last week:

“Yes - Platform is the way to go”

“Ehh - This was an item failure rather than security. The change process should have canary / split deployments, especially as this was not an urgent high priority change”

💰 Market Summary

  • 14 companies raised $507.0M across 12 unique product categories in 3 countries

  • 2 companies were acquired or had a merger event across 2 unique product categories

  • 100% of funding went to product-based cybersecurity companies

  • 1 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.

There was a big funding rally last week leading up to Black Hat, and I expect this current week to be much the same. You can also see the seasonal uptick in funding announcements from 2023.

Another quieter week on the M&A front, but there was at least one notable transaction.

🤙 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: Check Point Software

Check Point Software (CHKP)

Check Point reported a strong second quarter, attributing growth to stronger-than-normal interest in network security and subscription revenue. Check Point also announced the appointment of Nadav Zafrir, a co-founder of Team8 venture capital firm, as the new incoming CEO starting in December.

Check Point reported that revenue grew by 7% to $627 million, had three large deals totaled $130 million, and new business bookings grew by double-digits across all regions.

As always, the public cyber company tracker shows all public cybersecurity companies worldwide, along with market data, funding raised, product categories, and more!

🧩 Funding By Product Category

  • $150.0M for Security and Compliance Automation across 1 deal

  • $140.0M for Software Supply Chain Security across 1 deal

  • $60.0M for Cyber Insurance across 1 deal

  • $58.5M for Application Security Posture Management (ASPM) across 2 deals

  • $33.0M for Identity Governance & Administration (IGA) across 1 deal

  • $25.0M for Artificial Intelligence (AI) Security across 2 deals

  • $13.5M for Secure Networking across 1 deal

  • $10.0M for Security Awareness across 1 deal

  • $6.0M for Managed Security Services Provider (MSSP) across 1 deal

  • $6.0M for Artificial Intelligence (AI) Governance across 1 deal

  • $5.0M for Threat Detection and Response (TDR) across 1 deal

  • An undisclosed amount for Threat Intelligence across 1 deal

🏢 Funding By Company

🌎 Funding By Country

  • $477.0M for the United States across 12 deals

  • $20.0M for Switzerland across 1 deal

  • $10.0M for Canada across 1 deal

🤝 Mergers & Acquisitions

📚 Great Reads

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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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