Venture Funding Soars for Cybersecurity Startups

In August 2014, the WSJ reported about the first half year of private equity transactions in cyber security. There is a lot of investor interest, supported by the growing market demand and stream of reports on breaches and incidents. 

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"Venture funding is booming, and corporations and government agencies are a big reason why. Those big-ticket customers are seeking the latest ways to ensure their networks are safe from cyber attacks, and investors are lining up to make sure they are ready to take advantage of the expanded market. In the first half of this year, venture capital firms put nearly $900 million into U.S. cybersecurity startups, nearly matching all of last year’s total dollars invested, and the sector was on pace to easily post the best mark in a decade:

Recent transactions include :

  • ViaForensics Raises Funding, received a Small Business Innovation Research Phase III contract from the Department of Homeland Security Science & Technology Directorate Cyber Security Division....
  • Cyber-Ark Files for IPO – publicly filed for an initial public offering
  • Biocatch Ltd., which provides cyber - security services that include behavioral biometric authentication and threat detection, has raised $10 million in funding.
  • Onapsis Inc. has raised $9.6 million in funding led by .406 Ventures and supported by Endeavor Catalyst and existing investors.
  • Vectra Networks raised $25 million in funding to detect and prioritize attacks in real time so customers can decide which ones to fight first

  • Bitglassraised $25 millionfor a service that sits between a company’s own computer network and the servers operated by an external cloud service

 

A list of transactions will be posted and regularly updated. 

Early-stage deal and funding activity to cybersecurity firms hits a record in 2014

Cybersecurity – What’s Happening at the Early Stage?

Early-stage deal and funding activity to cybersecurity firms hits a record. A16Z, SV Angel and Google Ventures are most active.

cybersecurityearlystagefunding

Cybersecurity early-stage deal sizes rise since 2011

Cybersecurity Series A deal sizes have bumped up over the past three years. 2011 saw cybersecurity startups raising, on average, $5.1M vs. $7.0M in 2012 and $6.6M in 2013 (after stripping out AirWatch’s mega-round). Peeling back Series A cybersecurity deals over the last four years, we see the average round comes in at $6.5M while average seed deal sizes have weighted in at $891K.

cybersecuritydealsizeCybersecurity most active early-stage investors – A16Z leads

On a unique company basis, Andreessen Horowitz has been the most active cybersecurity VC (we analyzed both pure-play and corporate VCs) at the early-stage since the start of 2010.  A16Z has invested in over ten firms at the early-stage including Bromium, Pindrop, Bluebox, Illumio and Morta Security (recently acquired by Palo Alto Networks). While Intel Capital has been the most active corporate VC in cybersecurity and has notched some high-profile exits, Google Ventures actually has been the most active early-stage CVC in the space over the period investing in firms including Ionic Security, ThreatStream and Duo Security.

The top 20 most active early-stage cybersecurity investors based on the number of unique company deals are listed below.

cybersecuritymostactive

 Source : https://www.cbinsights.com/blog/cybersecurity-early-stage-snapshot/

Wordwide Cyber Security market continues to grow

Cybersecurity – Market contniues to grow, forecasts by 2019 adjusted.

IBM increased its cyber security focus which resulted in a 3x growth of its business, putting it closer to the likes of RSA, Trend Micro and Intel Security. 

 Source :http://www.csoonline.com/article/2946017/security-leadership/worldwide-cybersecurity-market-sizing-and-projections.html

Over 2.5 Billion USD invested in cyber security technologies in 2014.

Cybersecurity – Investments on the rise in 2014 and 2015

Early-stage deal and funding activity to cybersecurity firms continues to grow. New companies to watch on the list. Increased interest from traditional investors.

 Source :https://www.cbinsights.com/blog/cybersecurity-industry-startup-funding-trends/?utm_content=buffer969a2&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

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