This is the fifth issue of the Pro Reports roll-up series for the Security, Funded newsletter. I adjust this content often based on feedback, so if you see something you like or you feel something is missing, just let me know.
As a Pro Member, you get access to additional analysis from the free newsletter with additional insights from me.
Let's dive in.
47 companies raised $2.5B (down from $2.9B in October 2021)
Most funding again did not favor a specific industry, with a small blip for Medical, Space & Satellite, and Industrial Control Systems (ICS) verticals.
Funding by industry vertical
$2.4B - industry agnostic
$10.0M - Medical
$8.3M - Space & Satellite
$7.4M - Industrial Control Systems (ICS)
Security Operations came through with a mega funding round for just one (1) company. It was the largest ever funding round in the cybersecurity industry to date.
IoT Security also came in with a big funding round.
I predict in the next 6-12 months we will see a substantial increase in spending in the Privacy category and Cyber Insurance companies.
Top 5 funded categories
$1.3B for Security Operations
$317.4M for IoT Security
$206.2M - for Software Security
$184.5M for Managed Services Provider (MSP)
$140.0M for Continuous Compliance
$80.0M for Cyber Insurance
$63.5M for Breach & Attack Simulation (BAS)
$56.7M for Network Security
$47.0M for Vulnerability Management
$38.0M for Managed Detection and Response (MDR)
$15.7M for API Security
$10.9M for Privacy
$8.0M for Security Analytics
$7.3M for Application Security
$4.0M for Physical Security
$3.3M for Data Protection
$2.8M for Attack Surface Management
$2.0M for Open-Source Intelligence (OSINT)
$2.0M for Managed Security Services Provider
$644.0K for Cybersecurity Education
$150.0K for Cybersecurity Recruiting
An undisclosed amount for Risk Management
An undisclosed amount for Professional Services
An undisclosed amount for Cloud Security
By Lead Investor
The top 5 lead investors or investor teams.
Funding by investment teams
$1.3B - Altimeter Capital, D1 Capital Partners, Sutter Hill Ventures, Tiger Global Management
$300.0M - One Equity Partners
$150.0M - Liberty Strategic Capital
$140.3M - CapitalG, Paladin Capital Group
$100.0M - ICONIQ Growth
The top three products categories that were acquired this month.
Professional and Managed Services Provider (MSP) companies are on a huge rise and a trend I have seen with VC firms. Services-based companies complement a broader portfolio of product companies for VCs and lead to economies of scale with recurring revenue and long contracts.
Both of these facts can lead to higher operating efficiencies for the VCs and greater valuations for the portfolio companies.
The companies that I'm the most excited about this month and the ones I think have the most potential to disrupt or take a big market share.
Let me know what else you want to see in these reports and what other insights you're looking for.