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  • 💰 Security, Funded #70 - PANW Earnings, Cyber Marketechture, and Why It’s a Buyer’s Market

💰 Security, Funded #70 - PANW Earnings, Cyber Marketechture, and Why It’s a Buyer’s Market

The Security, Funded newsletter issue #70 - the business of global cybersecurity funding and M&A news from the week of November 14th, 2022.

Hey there,

I hope you had a great weekend!

In this week's issue:

  • Palo Alto earnings

  • Cyber marketechture

  • Why it's a buyer's market

Palo Alto Networks posted strong Q3 2022 earnings last week beating analyst expectations. Oh yeah, and they acquired Cider Security (see more below).

Per the earnings call, Palo Alto hinted that customers want more security coverage for the same or less money. Palo Alto stated that demand wasn't slowing down, but customer were delaying projects or financing in some cases leading to a deeper pipeline than normal.

Cyber budget dollars are shrinking all around (or at least not growing year over year) in either tools, people, consultants, or all of the above. CFOs and CISOs alike are looking for ways to stem the operational expense bleeding, and as a result, technology partner and vendor consolidation is a top concern for many companies today.

CISOs need their budget dollars to go further than before and that means they will be looking to vendors to take that on, at least in part.

What does this mean for cybersecurity companies?

It means they have to sell even more than they do today. Given that there is a never ending stream of new cybersecurity companies launching, competition is going to continue to heat up in an already hyper competitive space.

In their earnings call Palo Alto's CFO confirmed this statement by saying:

We hired 550 direct sales rep as quickly as we could in the quarter because we think this environment is going to continue. And the only way to fight this is to get more coverage out of the field, get more coverage, get more focused on getting deals done, get them across the line.

Incidentally, Palo Alto's CEO says they're going to be the first $100B cybersecurity company. 👀

What does this mean for CISOs and decision makers in the buying process going into 2023?

Expect more cold outreach (☠️ your inbox and LinkedIn), more marketechture ("marketing architecture"), and more aggressive positioning and new acronyms from the incumbent heavyweights and welterweights alike. Also expect more tooling changes via vendor acquisitions and acquihires (see Cider Security acquisition).

The silver lining to this, however, is that it could also mean to expect better product and suite package, more favorable payment terms, and vendors who are more incentivized to make the best deal they can for your company.

Onward to this week's issue.

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🗣️ Sponsor

Join us for ThreatX’s Live Q&A Thanksgiving special: Giving Thanks to CISOs with the CISO of Query.AI, Neal Bridges and ThreatX Field CISO, Jeremy Ventura

With Thanksgiving right around the corner, ThreatX Field CISO Jeremy Ventura and Neal will discuss why we are thankful for CISOs, plus the risks and rewards of this challenging role. Join us for a 30-minute Live Q&A on November 21st at 10 am PT / 1 pm ET.

Prepare your questions as Neal and Jeremy will be interacting with our live audience to discuss topics related to:* The risks and rewards of the CISO role* Navigating today’s economic and cyber landscape* The future of the CISO role

📊 Industry News

  • European Union Agency for Cybersecurity (ENISA) highlights the top cybersecurity threats likely to emerge by 2030 (more)

  • Google to pay record $391.5 million for misleading users on location tracking (more)

  • Australia launches standing operation against cyber criminal syndicates (more)

💰 Funding Summary

  • 12 companies raised $203.2M across 10 unique product categories

  • 7 companies were acquired or had a merger event across 6 unique product categories for $195.0M

🧩 Funding by Product Category

  • $65.0M for Data Protection

  • $46.0M for Breach & Attack Simulation (BAS)

  • $25.0M for Secure Remote Access

  • $17.7M for Managed Security Services Provider (MSSP)

  • $14.0M for Application Security

  • $12.4M for Mobile Device Security

  • $9.0M for Software Supply Chain Security

  • $8.0M for Data Privacy

  • $4.8M for Fraud and Financial Crime Protection

  • $1.3M for Cloud Security Posture Management (CSPM)

🏢 Funding By Company

🌎 Funding By Country (New!)

  • $91.1M for United States

  • $65.0M for Israel

  • $17.7M for Netherlands

  • $17.0M for Canada

  • $12.4M for Belgium

  • An undisclosed amount for France

🤝 Mergers & Acquisitions

🔐 Secure The Job

Browse the jobs I curate each week and apply for what matches your interests.

Post a role and request access to start meeting world-class candidates open to new opportunities. Learn more or request access here.

📚 Great Reads

  • An Intro to Cybersecurity for VC's - A cyber operator's guide to learning about the cybersecurity industry for people working in venture capital and private equity.

  • Tech layoffs and Cybersecurity - The tech industry has been seeing a bit of a blood bath in 2022. We seem to have gone from The Great Resignation to Quiet Quitting to the Great Firing in a very short time.

  • Bad CISO Archetypes - The six types of CISOs you don't want to hire (or don't want to become).

🗣️ Sponsor

Talking Heads Interview Series

As a cybersecurity start-up, we spend a lot of time talking to cybersecurity leaders in many organizations, looking to hear their thoughts on the product we need to build and understand the risks and pressures they are facing every day. We’re fortunate to get to spend time with some very clever people, and felt their wisdom needs sharing!

So, we’re launching “Talking Heads”; a series of structured interviews with CISOs (and other roles that interact with CISOs) aimed at sharing best practice and insider knowledge on how to be a great CISO.

🧪 Labs

Insert commas into your password so when your credentials are dumped into a CSV it breaks it— vx-underground (@vxunderground) October 5, 2022 

👋 Thanks

Have questions, comments, or feedback about this issue? I'd love to hear from you. Reach out on Twitter or reply directly to the newsletter version of this issue.

Thanks for reading, and see you again next time!


Mike P

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