Deck these halls with this bread ๐Ÿฅ–

๐ŸŽ„ Security, Funded #73 - See ya next year, a new kind of (ad)venture, and the last batch of public cyber earnings

The Security, Funded newsletter issue #73 - the business of global cybersecurity funding and M&A news from the week of December 5th, 2022.

Mike P
Mike P

Table of Contents

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 motionโ€ 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. ๐Ÿ™€ 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 ๐Ÿป).

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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๐Ÿ’ฐ 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

๐Ÿงฉ 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

๐Ÿข Funding By Company

๐ŸŒŽ Funding By Country

  • $264.4M for United States ๐Ÿ‡บ๐Ÿ‡ธ
  • $13.0M for Brazil ๐Ÿ‡ง๐Ÿ‡ท
  • $12.8M for Ireland ๐Ÿ‡ฎ๐Ÿ‡ช
  • $7.0M for Israel ๐Ÿ‡ฎ๐Ÿ‡ฑ
  • $4.3M for Switzerland ๐Ÿ‡จ๐Ÿ‡ญ
  • $2.5M for New Zealand ๐Ÿ‡ณ๐Ÿ‡ฟ
  • $104.6K for The Netherlands ๐Ÿ‡ณ๐Ÿ‡ฑ
  • An undisclosed amount for Singapore ๐Ÿ‡ธ๐Ÿ‡ฌ
  • An undisclosed amount for China ๐Ÿ‡จ๐Ÿ‡ณ

๐Ÿค Mergers & Acquisitions

  • Booz Allen Hamiltonโ€™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)

๐Ÿ” Secure The Job

Return on Security Job Board

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.

๐Ÿ“Š Industry News

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

๐Ÿ“š 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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๐Ÿงช 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 ๐Ÿ˜ณ

๐Ÿ‘‹ Thanks

Have questions, comments, or feedback about this issue? I'd love to hear from you. If you enjoyed this issue, please send it to a friend or colleague!

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Thanks for reading and see you again next time!


Mike P