💰 Security, Funded #92 - YTD Funding Down Bad, Passwords Phasing Out, and The Great Financial Clappening™️
A review of cybersecurity funding and industry news from the week of May 1st, 2023.
Happy Monday, and I hope you had a great weekend!
Trying something different this week with a list of takeaways from this issue:
🎯 Quick Takeaways:
Fortinet's Q1 growth
Passwords phasing out
YTD funding is still down bad
11 companies raise $176M
6 M&A events, $100M
Prioritization & Loneliness
The Great Financial Clappening™️
Feeling like a king🤴🏽
Let me know what you think about this! 👆️
The Great Financial Clappening™️ continues on with PacWest bank on the brink of collapse, the US Fed hikes interest rates another 25 bps (see above), Samsung banned staff from using ChatGPT, The SEC paid out its largest-ever award to a whistleblower at ~$279M 🤯, and feeling like a king.
Onward to this week's issue.
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Have to see it to believe it?
🔮 Earnings Reports 🆕
I’m making this into a separate section now where there are significant earnings reports, let me know what you think!
Fortinet ($FTNT) - stock surged >6% after the Q1 earnings update, where billings and revenue were up 30% from last quarter. Fortinet cites their growth to increased demand for SASE (Secure Access Service Edge or a traditional VPN replacement) and broader cost-saving plays for new and existing customers.
The takeaway: Even though Q1 is seeing a growth rebound for some cyber companies, buyers are still preceding with caution and leaning further into digital transformation so long as it aligns with cost-savings (lower TCO) over features.
Industry News Roundup
📅 YTD Funding
A rolling 12-week chart to compare funding each week between 2022 and 2023.
Last week’s drop was more than just a delayed marketing tactic to avoid the noise of RSA, it was a look into how the market is shaping up this year. As you can see from this week’s chart, there is still a huge divergence from last year at this time. I do expect these numbers and the volume of deals to creep up over the next few weeks, however.
💰 Funding Summary
11 companies raised $176.0M across 10 unique product categories
6 companies were acquired or had a merger event across 5 unique product categories for $100.0M
🧩 Funding By Product Category
$65.0M for Managed Services Provider (MSP) across 1 deal
$40.0M for Fraud and Financial Crime Protection across 1 deal
$30.0M for Passwordless Authentication across 2 deals
$16.0M for Confidential Computing across 1 deal
$8.8M for Security Awareness across 1 deal
$6.0M for Internet Security across 1 deal
$4.5M for Application Security across 1 deal
$4.4M for Data Privacy across 1 deal
$1.2M for Secure Remote Access across 1 deal
An undisclosed amount for Data Access Governance across 1 deal
🏢 Funding By Company
🌎 Funding By Country
$99.5M for United States across 5 deals 🇺🇸
$56.0M for Israel across 2 deals 🇮🇱
$8.8M for United Kingdom across 1 deal 🇬🇧
$6.0M for Singapore across 1 deal 🇸🇬
$5.6M for Germany across 2 deals 🇩🇪
🤝 Mergers & Acquisitions
📚 Great Reads
Security's eternal prioritisation problem - What if the task I deprioritised leads to a breach that blows everything up? This is a question that's gone through every Security leader's mind.
DEF CON to set thousands of hackers loose on LLMs - This year's DEF CON AI Village has invited hackers to show up, dive in, and find bugs and biases in large language models (LLMs) built by OpenAI, Google, Anthropic, and others.
Loneliness Epidemic: When Your Only Friend is Over Your VPN - The latest issue of Vulnerable U from Matt Jay - From IRC to Zoom: How we've become more connected, yet more alone.
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🤔 Have questions, comments, or feedback? I'd love to hear from you!
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