Cyber Security Exit Valuation Multiples

Private Company Cybersecurity Exit Valuation Multiples: Median 4.9x and Average 10.9x

Exit activity in the cybersecurity sector is climbing. Average cybersecurity exit valuation multiples have increased since the start of 2012 but median exit valuation multiples have contracted slightly.

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In September 2013, after a lot of activity in the IPO and investment market on cyber security, CB Insights reported the following:

In the past 12 months, 78 cybersecurity firms have exited via M&A or IPO, including mobile sensor startup Authentec (acquired by Apple), Credant Technologies (acquired by Dell) and MDM firm Zenprise (acquired by Citrix).  In fact, cybersecurity exit numbers in the first half of 2013 have already surpassed 2010 exit levels. Between 2011 and 2012, cybersecurity exit activity grew nearly 50% and jumped 109% from 2010 to 2011.

Valution multiples for security startups have seen a broad range of values ranging from the low-end of 0.2x to a high of 80.0x since the start of 2010.

Over the period, the average P/S ratio in the cybersecurity market has stood at 10.9x and the median at 4.9x. The average valuation multiple has actually increased over time with it coming in at 7.9x in 2010 and 2011 and subsequently climbing to 11.9x since the start of 2012. However, median cybersecurity P/S multiples have contracted slightly from 6.2x to 4.8x in similar time frames. The chart below shows the diversity of valuation multiples for private cybersecurity firms over the past three years."

 

Source : http://www.cbinsights.com/blog/cybersecurity-valuation-multiples/

IPACSO publishes short list of contenders for the European Cyber Security & Privacy Innovation Awards

October 23rd , the first European Cyber Security & Privacy Innovation Awards will take place in Belgium. With these Awards, the IPACSO consortium, supported by the European Commission, awards Privacy and Cyber Security Innovators in Europe. From all entries, the independent review commission created a short list of 20 innovative companies the IT - security & privacy domains. This short list is now available on the event page.

Click here for an overview of the nominees and conference program, and confirm your attendance to the award ceremony and conference. Registration is free of charge, but seats are limited and registration is mandatory

The winners will be announced at the Brussels innovation centre 'Living Tomorrow'. Surrounding the award ceremonies, the consortium has set up an agenda with inspiring presentations and challenging panel discussions with captains of industry, European commission personnel, and representatives from the research and security community. Join us, Thursday 23 October, at Living Tomorrow, and attend Keynotes from the Director Cyber Security of McAfee, the European Commission, and the Vice President of Vasco, and evaluate with us new research projects, ideas, approaches, methods and methodologies in the domains of cyber security and privacy, that will help us to ensure our privacy and protect our assets and critical infrastructures.

For more information & registration click here

Financial Tips for avoiding startup failure

Killer Startups

Source : http://worthworm.com/killer-startups-financial-tips-for-avoiding-startup-failure/

For those of you preparing to take on the entrepreneurial life full-time, be as rigorous as possible with your finances when pursuing your funding goals. It’s never been easier to bring a great idea into reality – from accelerators to crowdfunding to good old-fashioned bootstrapping, there are many support options for budding entrepreneurs to choose from.

The difficulty lies in keeping the great idea alive and sustaining. The best way to do so is through a rigorous understanding of the financials involved in running a startup. Most companies continued success will rely heavily on securing investor funding, but competition for dollars is fierce – and without it long-term viability and profitability is unlikely. Keep your dream alive with the following financial advice for startups.

1. Remember, no one wants to be a one hit wonder.

Ffun ideas are a dime a dozen. The skills and abilities to lead a team and turn that idea into an actual business are not. Startup founders need to be able to reasonably talk about the future of their company, including finances. The inability to do so will be a huge turnoff to investors from the very start.

2. Resist the temptation to overvalue your venture.

If you are fortunate enough to land a coveted investor meeting, presenting a defensible valuation of your company is of the utmost importance. Just because companies like Snapchat are making billion-dollar headlines doesn’t mean you, too, need to overstate the value of your company in an effort to compete. Overvaluing a venture runs several risks, including appearing inexperienced or unreasonable, attracting incompatible investors, or securing the funding you need only to price yourself out of future funding rounds.

3. Seek the funding you need to be successful, and that’s it.

Start with small and realistic rounds of funding. AirBnB, for instance, began with just $20,000 in seed money and grew into a company now valued at around $2.5 billion. Skype started off as an independent company with just $250,000 in angel investment, and continued its growth all the way towards acquisition by Microsoft in 2011.

You don’t need millions to get started and keep your startup a float, just the know-how to strategically raise the funds you need and to be able to demonstrate that the money will be spent in the right places.

Keep in mind, new ventures are risky for investors, especially with first-time entrepreneurs. They want a clear go-to market strategy that is scalable. No one expects your startup to be an instant hit. Those are rare. They do expect you to have found a niche in the market that needs to be filled and know how to financially guide your idea into a long-term reality.

 

 

 

IPACSO presents at the Seminar on Road-Mapping Cybersecurity Research & Innovation, Florence, October 8, 2014

IPACSO will be presenting at the upcoming NISP WG3 meeting as part of the "Seminar on Road-mapping Cybersecurity Research and Innovation" organized by CAPITAL, CSP FORUM and the European Commission NIS WG3 in Florence, Italy. This one day event will focus on Cybersecurity Business industry challenges, Emerging areas of Information Technology and the Network and Information Security Platform (NIS P) Working Group 3 on Secure ICT Research and Innovation working meeting. For more information about the event click here

European Cyber Security Month 2014

Brussel, October 1st, 2014

Today, again in Europe the annual Cyber Security Month kicked off, to raise awareness on Cyber Security throughout the various Member States. 

Supported by different events and activities and with various awareness materials or key messages for end users, business users, security professionals, security industry, researchers and policy makers. 

Meet IPACSO today at the ENISA High Level Event and ECSM (European Cyber Security Month) launch event in Brussels, or join us at one of the following activities 

- 08.10 : CSP & CAPITAL, industry meeting, Florence, Italy
- 08.10 : EVIDENCE workshop, Girona, Spain
- 13.10 : FIRE Industrial & Research Challenges in ICT Security, Brussels, Belgium
- 14 - 15.10 : ISSE, Brussels, Belgium
- 23.10 : IPACSO Cyber Security & Privacy Innovation Awards

Find more events and activities on the ECSM Website

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