🎄 Security, Funded #73 - See ya next year, a new kind of (ad)venture, and the last batch of public cyber earnings

Hey there,

I hope you had a great weekend!

In this week's issue:

• See ya next year
• A new kind of (ad)venture
• The last batch of public cyber earnings

The final batch of public cybersecurity companies shared their earnings reports last week and included HashiCorp ($HCP) and SentinelOne ($S). A few highlights include:

• SentinelOne beat year over year revenue by 106% and grew total customers by ~55%
• HashiCorp beats earning and their grew revenue 52% year over year

If you tuned in for last week's issue, you'll remember I called out how managed services would have a deeper (or renewed) focus for cybersecurity companies going into 2023.

SentinelOne discussed how channel growth partnerships via MSSPs has been "a highly strategic go-to-market motion” especially as "more and more of [the] business is moving upstream."

The number don't lie either as SentinelOne's customer growth flies in the face of what other public cybersecurity companies have been seeing (less new customers, but going deeper with existing customers).

On the HashiCorp side, the company has always grown on the strength of their integrations and this last earnings report was no exception.

HashiCorp has consistently built an ecosystem around plugging-n-playing with the cloud heavyweights and winning Security Partner of the Year from AWS is clear sign their strategy has paid off. HashiCorp saw revenue growth from being deeply embedded in cloud infrastructure and application growth and on the backs of all the zero trust initiatives that got focus this year. I expect this trend to continue accelerating in 2023.

Also, just a heads up that this will be the last Security, Funded issue of 2022. 🙀 I'll be taking a break for the holidays and I hope you get to do the same.

Outside of spending time with the family and watching lots of Christmas movies, I plan to spend some of the downtime planning for next year, catching up on reading, and maybe doing a little bit of writing (whilst having an egg nog or two 🍻).

I'll see you back again on Tuesday, January 3rd, 2023 since that Monday is an observed holiday in the US.

Onward to this week's issue.

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💰 Funding Summary

• 18 companies raised $304.1M across 13 unique product categories
• 5 companies were acquired or had a merger event across 3 unique product categories

🧩 Funding by Product Category

• $200.0M for Continuous Compliance
• $36.0M for Managed Security Services Provider (MSSP)
• $13.0M for Privileged Access Management (PAM)
• $12.8M for Data Protection
• $8.7M for Identity Threat Detection and Response (ITDR)
• $8.5M for Threat and Risk Prioritization
• $8.0M for Data Privacy
• $7.0M for Identity and Access Management (IAM)
• $5.5M for Cybersecurity Education & Training
• $4.3M for Attack Surface Management (ASM)
• $185.0K for Third-Party Risk Management
• $104.6K for Cyber Insurance
• An undisclosed amount for Blockchain Security

🏢 Funding By Company

• Drata, a United States-based automated compliance and security platform, raised a $200.0M Series C from ICONIQ Growth and GGV Capital. (more)
• Second Front Systems, a United States-based managed secure software deployment platform focused on the government sector, raised a $32.0M Series A from Moore Strategic Ventures and AEI Horizon X. (more)
• Senhasegura, a Brazil-based privileged access management (PAM) platform, raised a $13.0M Series A from Graphene Ventures. (more)
• Vaultree, an Ireland-based encryption-as-a-service platform, raised a $12.8M Series A from Molten Ventures and Ten Eleven Ventures. (more)
• Rezonate, a United States-based identity threat detection and response, raised a $8.7M Seed from State of Mind Ventures and Flybridge. (more)
• Interpres Security, a United States-based threat informed risk prioritization platform, raised a $8.5M Seed from Ten Eleven Ventures. (more)
• Axiom, a Israel-based cloud identity and access management (IAM) automation platform, raised a $7.0M Seed from S Capital. (more)
• Protopia AI, a United States-based platform for making sensitive data available for AI/ML use cases in privacy-preserving manner, raised a $6.0M Seed from Silverton Partners, Galaxy Interactive, DNX Ventures and ATX Venture Partners. (more)
• Saporo, a Switzerland-based attack surface management (ASM) platform, raised a $4.3M Seed from XAnge. (more)
• SensCy, a United States-based managed security services provider (MSSP), raised a $4.0M Seed from Secure Octane, ID Ventures, Wakestream Ventures, and Michigan Rise. (more)
• Balance Theory, a United States-based knowledge management platform for security programs focused on team collaboration and education, raised a $3.0M Seed from DataTribe. (more)
• SafeStack, a New Zealand-based interactive learning and education for secure software development, raised a $2.5M Seed from Blackbird Ventures. (more)
• Protopia AI, a United States-based platform for making sensitive data available for AI/ML use cases in privacy-preserving manner, raised a $2.0M Pre-Seed from Silverton Partners, Galaxy Interactive, and DNX Ventures. (more)
• Venseca, a United States-based third-party supply chain risk platform, raised a $185.0K Seed from Ben Franklin Technology Partners of Northeastern Pennsylvania.
• Insiber, a The Netherlands-based cyber risk insurance provider, raised a $104.0K Pre-Seed from Antler. (more)
• ClearVector, a United States-based identity threat remediation platform, raised an undisclosed Seed from Menlo Ventures. (more)
• GoPlus Security, a Singapore-based blockchain security platform, raised an undisclosed Venture Round from Binance Labs. (more)
• Yunjizhi, a China-based data protection and governance platform, raised an undisclosed Private Equity Round from Meiya Pico.

🌎 Funding By Country

• $264.4M for United States 🇺🇸
• $13.0M for Brazil 🇧🇷
• $12.8M for Ireland 🇮🇪
• $7.0M for Israel 🇮🇱
• $4.3M for Switzerland 🇨🇭
• $2.5M for New Zealand 🇳🇿
• $104.6K for The Netherlands 🇳🇱
• An undisclosed amount for Singapore 🇸🇬
• An undisclosed amount for China 🇨🇳

🤝 Mergers & Acquisitions

• Booz Allen Hamilton’s Managed Threat Services (MTS) business merged with Security On-Demand for an undisclosed amount to form cyber threat intelligence company DeepSeas. (more)
• Makros, a Chile-based professional services firm focused on cybersecurity, was acquired by Deloitte for an undisclosed amount. (more)
• Octo, a United States-based professional services firm focused on cybersecurity and digital transformation services, was acquired by IBM for an undisclosed amount. (more)
• Optistar Technology Consultants, a United States-based professional services firm focused on digital forensics and cybersecurity services, was acquired by Synoptek for an undisclosed amount. (more)
• Prevasio, an Australia-based cloud security posture management (CSPM), was acquired by Algosec for an undisclosed amount. (more)

🔐 Secure The Job

Return on Security Job Board

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

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📊 Industry News

• Cyber laws updated to boost UK’s resilience against online attacks (more)
• Maryland bans TikTok in state agencies (more)
• Apple advances user security with powerful new data protections (more)

📚 Great Reads

• Why are CISOs resigning? - In the era of increased cybercrime, CISO roles are too critical to protect economic institutions, government websites, critical infrastructure etc. Unfortunately, CISO`s are quitting.
• My Must Read List - None of these books are specifically about the cybersecurity field, but all of these books have helped me become a better tech and cybersecurity person.
• Staff Security Engineer - Rami McCarthy went out and got stories from 8 Staff+ Security Engineers and collected them into an awesome resource on tl;dr sec.

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🧪 Labs

Continuing on the OpenAI theme, I asked DALL-E 2 to make an image from the meta text from this issue and got back this terrifying interesting image that I think nicely sums up the venture capital space nicely 😳

👋 Thanks

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Thanks for reading and see you again next time!

Cheers,

Mike P