💰 Security, Funded #178 - The AI Truffle Shuffle

Hey there,

Hope you had a great weekend!

Well, that didn’t take long! The day he stepped into the White House, US President Trump threw out former President Biden's AI Security Executive Order (along with 77 other EOs!). It’s too early to tell what this will mean for the industry at large, but AI safety and governance professionals around the world are not fans of this outcome.

Also, a new AI model released by a hedge fund in China shakes the AI and security industry at large, with concerns around the advanced capabilities of the model and the troublesome privacy policy that came with it.

Last week had a ton of activity, so you might as well go ahead and hit that “Read Online” link at the top right so you can read the whole issue more easily. 🫡 

😎 Vibe Check

Last issue’s vibe check:
Who has the most influence over cybersecurity budget decisions in your organization?🟩🟩🟩🟩🟩🟩 Security Leadership (e.g., CISO, Head of X) (27)
🟨🟨🟨⬜️⬜️⬜️ The CEO / Board of Directors (16)
🟨⬜️⬜️⬜️⬜️⬜️ The CFO / Finance Team (9)
🟨⬜️⬜️⬜️⬜️⬜️ Security Practitioners (6)
58 Votes

Thank you to everyone who voted last week! Looking at these results, I realize they are upside down from what I expected. I expected security practitioners to have the most or equal sway as the security leadership team, that the CFO would finish second, and the CEO / BOD would be dead last. 🤔 

Some of the top comments from last week:

Security Leadership - “I take in a lot of guidance/advice/ideas from my practitioners and other business leaders (BoD, CFO, CIO, etc.) could heavily influence, too, but ultimately they leave us the autonomy to have budget, decisions, influence, etc. reside on me and my leaders.”

💰 Market Summary

📸 YoY Snapshot

There was a ramp-up in volume on the funding side last week, but dollar figures are still relatively low. This is just a timing issue, as the bigger rounds are starting to roll in.

M&A continues to progress strongly, with more professional services and MSSP businesses being acquired.

☎️ Earnings Reports

🧩 Funding By Product Category

• $30.0M for Security Operations across 1 deal

• $9.4M for Privileged Access Management (PAM) across 1 deal

• $8.7M for Application Security Posture Management (ASPM) across 1 deal

• $8.0M for Password Management across 1 deal

• $7.0M for Security Analytics across 1 deal

• $5.9M for Threat Intelligence across 1 deal

• $4.0M for Data Security Posture Management (DSPM) across 1 deal

• $2.0M for Passwordless Authentication across 1 deal

• $1.9M for Professional Services across 1 deal

• $1.0M for Fraud and Financial Crime Protection across 1 deal

• An undisclosed amount for Software Supply Chain Security across 1 deal

• An undisclosed amount for Secure File Sharing across 1 deal

• An undisclosed amount for Quantum Security across 1 deal

• An undisclosed amount for Network Security across 1 deal

• An undisclosed amount for Managed Detection and Response (MDR) across 1 deal

• An undisclosed amount for Attack Surface Management (ASM) across 1 deal

• An undisclosed amount for Application Security Testing (AST) across 1 deal

🏢 Funding By Company

Products:

• Mitiga, an Israel-based cloud-based incident response platform, raised a $30.0M Series B from SYN Ventures. (more)

• Fudo Security, a United States-based privileged access management (PAM) platform, raised a $9.7M Venture Round from bValue Fund. (more)

• DryRun Security, a United States-based application security posture management (ASPM) platform, raised a $8.7M Series A from LiveOak Venture Partners and Work Bench Ventures. (more)

• Passbolt, a Luxembourg-based password management platform, raised a $8.0M Seed from Airbridge Equity Partners. (more)

• Axoflow, a United States-based security and cloud data aggregation and analytics platform, raised a $7.0M Seed from EBRD Venture Capital. (more)

• Zynap, a Spain-based threat intelligence platform, raised a $5.9M Seed from K Fund and Kibo Ventures. (more)

• Safetica Technologies, a Czech Republic-based data security posture management (DSPM) platform, raised a $4.0M Series A from Impulse Ventures. (more)

• Keyless, a United Kingdom-based passwordless authentication platform, raised a $2.0M Venture Round from Experian Ventures and Rialto Ventures. (more)

• Almanax, a United States-based cryptocurrency and smart contract auditing and security platform, raised a $1.0M Venture Round from Blockchain Builders Fund and Eden Ventures. (more)

• CYFIRMA, a Singapore-based external attack surface management platform, raised an undisclosed Venture Round from MDI Ventures. (more)

• FileCloud, a United States-based secure file-sharing platform, raised an undisclosed Private Equity Round from Level Equity Management. (more)

• Murphy Security, a China-based open-source software supply chain security platform, raised an undisclosed Seed from Hangzhou Fuzhuo Investment Management and Hundsun Technologies. (more)

• QuSecure, a United States-based cloud network security platform using post-quantum cryptography, raised an undisclosed Venture Round from Accenture Ventures. (more)

• SandboxAQ, a United States-based post-quantum cryptography (PQC) security platform, raised an undisclosed Venture Round from Arcapita Ventures and Parkway Venture Capital. (more)

• TENEX.AI, a United States-based managed threat detection and response (MDR) platform, raised an undisclosed Seed from Andreessen Horowitz. (more)

• ZeroPath, a United States-based code vulnerability scanning platform, raised an undisclosed Seed from SurgePoint Capital. (more)

Services:

• Kymatio, a Spain-based professional services firm focused on security awareness training and education, raised a $1.9M Seed from ABANCA and Decelera. (more)

🌎 Funding By Country

• $30.0M for Israel across 1 deal

• $26.1M for the United States across 9 deals

• $8.0M for Luxembourg across 1 deal

• $7.8M for Spain across 2 deals

• $4.0M for Czech Republic across 1 deal

• $2.0M for the United Kingdom across 1 deal

• An undisclosed amount for Singapore across 1 deal

• An undisclosed amount for China across 1 deal

🤝 Mergers & Acquisitions

Product

• Dellfer, a United States-based IoT and automotive cybersecurity startup, was acquired by Enigma for an undisclosed amount. Dellfer had previously raised $8.0M in funding.(more)

Service

• Cybeta, a United States-based professional services company focused on threat intelligence and dark web monitoring, was acquired by HPN Holdings, Inc. (also known as “Master Glazier's Karate International,” which cracks me up 🥋 ) for an undisclosed amount. Cybeta has not publicly disclosed any prior funding rounds. (more)

• MorganFranklin Cyber, a United States-based professional services firm focused on security operations and program strategy, was acquired by M/C Partners for an undisclosed amount. MorganFranklin Cyber has not publicly disclosed any prior funding rounds. (more)

• U.S. Computer Connection, a United States-based managed security services provider (MSSP), was acquired by Netsurit for an undisclosed amount. U.S. Computer Connection has not publicly disclosed any prior funding rounds. (more)

• The cybersecurity consulting arm of WithSecure, a Finland-based professional services firm focused on cybersecurity risk management, was acquired by Neqst for an undisclosed amount. WithSecure has not publicly disclosed any prior funding rounds. (more)

📚 Great Reads

🧪 Labs