The Evolving Landscape of Cybersecurity: M&As, IPOs, and Venture Investments

Cybersecurity M&A

The Rising Tide of Acquisitions in the Cybersecurity Market

The cybersecurity industry is a dynamic and rapidly evolving sector, marked by significant mergers and acquisitions (M&As), initial public offerings (IPOs), and venture capital activities. These movements not only shape the direction of cybersecurity solutions but also reflect the growing importance of digital security in the modern world.

https://www.myprivacy.blog/cybersecurity-m-a-and-customer-data-privacy-navigating-the-changing-landscape/

Some examples of big cybersecurity mergers and acquisitions throughout the years. Here are 20 of them:

– In 2023, Okta acquired Auth0, a leading identity platform for developers, for $6.5 billion¹.
– In 2023, Lookout acquired CipherCloud, a cloud security provider, to enter the SASE market¹.
– In 2023, Palo Alto Networks acquired Bridgecrew, a cloud security and DevSecOps company, for $156 million¹.
– In 2023, Zscaler acquired Smokey Mountain, a cloud security posture management (CSPM) company, for $250 million¹.
– In 2023, FireEye sold its products business, including the FireEye name, to a consortium led by Symphony Technology Group for $1.2 billion¹.
– In 2022, Cisco acquired Portshift, a Kubernetes security platform, for an undisclosed amount².
– In 2022, McAfee acquired NanoSec, a cloud-native application security platform, for an undisclosed amount².
– In 2022, VMware acquired Octarine, a Kubernetes security startup, for an undisclosed amount².
– In 2022, CrowdStrike acquired Preempt Security, a zero trust and conditional access provider, for $96 million².
– In 2022, Fortinet acquired Opaq Networks, a SASE cloud provider, for an undisclosed amount².
– In 2021, Broadcom acquired Symantec’s enterprise security business, including the Symantec name and brand, for $10.7 billion³.
– In 2021, Thoma Bravo acquired Sophos, a British cybersecurity firm, for $3.9 billion³.
– In 2021, Insight Partners acquired Armis, an IoT security company, for $1.1 billion³.
– In 2021, Mimecast acquired Segasec, a web security startup, for an undisclosed amount³.
– In 2021, Cloudflare acquired S2 Systems, a browser isolation startup, for an undisclosed amount³.
– In 2020, IBM acquired Red Hat, an open source software company, for $34 billion⁴.
– In 2020, Carbon Black acquired Bit9, an endpoint security company, for $1.25 billion⁴.
– In 2020, Proofpoint acquired ObserveIT, an insider threat management company, for $225 million⁴.
– In 2020, Ping Identity acquired UnboundID, a customer identity and access management company, for an undisclosed amount⁴.
– In 2020, Rapid7 acquired DivvyCloud, a cloud security and compliance company, for $145 million⁴. I hope this list is helpful for you.

Source: Conversation with Bing, 1/5/2024 (1) Cybersecurity in M&A strategy | Grand Thorton – Grant Thornton. https://www.grantthornton.com/insights/articles/advisory/2021/cybersecurity-in-ma-strategy. (2) Top cybersecurity M&A deals for 2021 | CSO Online. https://www.csoonline.com/article/570581/top-cybersecurity-manda-deals-for-2021.html. (3) The Role of Cybersecurity in Mergers and Acquisitions (M&A). https://www.upguard.com/blog/the-role-of-cybersecurity-in-mergers-and-acquisitions. (4) Top 5 Cybersecurity Mergers and Acquisitions 2023. https://www.infosecurity-magazine.com/news-features/cybersecurity-mergers-acquisitions/. (5) Cybersecurity In Mergers And Acquisitions: Ten-point List. https://thecyberexpress.com/cybersecurity-in-mergers-and-acquisitions/.

To answer your question, I did some research on the total of monies in cybersecurity mergers and acquisitions. According to SecurityWeek, more than 450 cybersecurity M&A deals were announced in 2022, totaling more than $63 billion in disclosed deal value¹. This is an increase from 2021, when more than 150 deals totaling more than $23 billion in value took place⁴. Cumulative spending on cybersecurity deals since 2008 totals nearly $22 billion, an average of over $6 billion in each year². I hope this information is useful for you. If you have any other questions, please feel free to ask.

Source: Conversation with Bing, 1/5/2024 (1) SecurityWeek Analysis: Over 450 Cybersecurity M&A Deals Announced in 2022. https://bing.com/search?q=total+of+monies+in+cybersecurity+mergers+and+acquisitions. (2) 10 biggest cybersecurity M&A deals of 2019 | CSO Online. https://www.csoonline.com/article/568775/10-biggest-cybersecurity-manda-deals-of-2019.html. (3) Cyber Security M&A: Decoding Deals In The Global Cyber Security … – IMAA. https://imaa-institute.org/cyber-security-ma-decoding-deals-in-the-global-cyber-security-industry/. (4) New Year’s Surprise: Cybersecurity M&A, Funding Activity Snowballs in Q4. https://www.darkreading.com/threat-intelligence/cybersecurity-ma-funding-activity-snowballs-q4. (5) Cybersecurity in M&A strategy | Grand Thorton – Grant Thornton. https://www.grantthornton.com/insights/articles/advisory/2021/cybersecurity-in-ma-strategy. (6) Top cybersecurity M&A deals for 2022 | CSO Online. https://www.csoonline.com/article/571851/top-cybersecurity-manda-deals-for-2022.html.

Top IPOs/ Big Series

https://www.compliancehub.wiki/ensuring-compliance-amidst-cybersecurity-sector-transformations-a-guide-to-vendor-and-third-party-risk-management/

Examples of top IPOs and big series venture capital investment rounds in cybersecurity. According to my research, here are some of them:

– Lacework, a cloud security platform, raised $1.3 billion in a Series D round led by Sutter Hill Ventures and Altimeter Capital in December 2021¹.
– Splunk, a data analytics and security company, received $1 billion in a strategic investment from Silver Lake in December 2021¹.
– Crowdstrike, an endpoint security provider, went public in June 2019, raising $612 million at a valuation of $6.7 billion².
– Rubrik, a cloud data management and security company, raised $261 million in a Series E round led by Bain Capital Ventures in January 2019³.
– Tufin, a network security policy management company, went public in April 2019, raising $108 million at a valuation of $454 million⁴

Source: Conversation with Bing, 1/5/2024 (1) The top 11 VC investors in cybersecurity | PitchBook. https://pitchbook.com/news/articles/the-top-11-vc-investors-in-cybersecurity. (2) Top 20 Venture Capital (VC) Firms in Cybersecurity – eSecurityPlanet. https://www.esecurityplanet.com/trends/top-vc-firms/. (3) 30 Cybersecurity Companies Raised $200M+ Each In 2021 – Cybercrime Magazine. https://cybersecurityventures.com/30-cybersecurity-companies-raised-200m-in-2021/. (4) Cybersecurity Venture Funding Surpasses $20B In 2021, Fourth Quarter …. https://news.crunchbase.com/venture/cybersecurity-venture-funding-2021-record/. (5) The 137 Best Cybersecurity Venture Capital Firms in 2023 – Failory. https://www.failory.com/blog/cybersecurity-venture-capital-firms.

the most active investors in cybersecurity vary depending on the type of investment. For venture capital, the most active investors since 2017 are Insight Partners, Plug and Play Tech Center, Accel, Sequoia Capital, and Bessemer Venture Partners¹. For private equity, the most active investors since 2017 are Thoma Bravo, TA Associates, Insight Partners, Vista Equity Partners, and TPG². Some of the most notable deals in the cybersecurity space include the $14 billion take-private deal for McAfee by Advent and Permira, the $6.5 billion acquisition of Auth0 by Okta, and the $1.3 billion Series D round for Lacework¹².

Source: Conversation with Bing, 1/5/2024 (1) Meet the 10 most active VC cybersecurity investors | PitchBook. https://pitchbook.com/news/articles/most-active-cybersecurity-investors-vc. (2) The most active PE investors in cybersecurity | PitchBook. https://pitchbook.com/news/articles/private-equity-investors-cybersecurity-thoma-bravo-mcafee. (3) Meet the 10 most active VC cybersecurity investors | PitchBook. https://pitchbook.com/news/articles/most-active-cybersecurity-investors-vc. (4) The most active PE investors in cybersecurity | PitchBook. https://pitchbook.com/news/articles/private-equity-investors-cybersecurity-thoma-bravo-mcafee. (5) The Most Active Cybersecurity VC Investors And Their Investments. https://www.cbinsights.com/research/cybersecurity-most-active-investor-infographic/.

Seed / Series A

https://www.breached.company/navigating-the-tide-the-customer-impact-of-cybersecurity-business-buyouts-and-evolving-funding-stages/

Examples of top cybersecurity startups that just received seed or series A funding. According to my research, here are 10 of each:

Seed Funding

– Vigilant Ops: A software security company that provides automated code analysis and vulnerability remediation. It raised $4.9 million in seed funding in December 2023¹.
– BRANDEFENSE: A brand protection platform that detects and removes online threats such as phishing, fraud, and counterfeiting. It raised $2.8 million in seed funding in December 2023¹.
– Bowtie: A web browser that secures and isolates web applications from the underlying operating system. It raised $3.2 million in seed funding in December 2023¹.
– Salvador Technologies: A cloud security company that helps enterprises protect their data and applications from cyberattacks. It raised $6 million in seed funding in December 2023¹.
– Thyrasec: A cybersecurity company that provides threat intelligence and incident response services. It raised $500,000 in pre-seed funding in December 2023¹.
– Xeol: A cybersecurity company that leverages artificial intelligence and blockchain to secure digital assets and transactions. It raised $3.2 million in seed funding in December 2023².
– Enveedo: A cloud security platform that helps enterprises manage their cloud security posture and compliance. It raised $3.2 million in seed funding in December 2023².
– Cytidel: A cybersecurity company that provides automated penetration testing and vulnerability scanning for web applications. It raised €1.4 million in seed funding in November 2023².
– Applivery: A mobile app distribution and management platform that enables secure and controlled app delivery. It raised €1 million in seed funding in November 2023².
– Safepoint: A cybersecurity company that provides endpoint protection and threat detection for remote workers. It raised $2.5 million in seed funding in October 2023².

Series A Funding

– Semgrep: A software security company that provides a code analysis tool that finds bugs and vulnerabilities in code. It raised $53 million in Series C funding in December 2023².
– Wiz: A cloud security company that helps enterprises find and fix security issues in their public cloud infrastructure. It raised $300 million in Series D funding in December 2023 at a $10 billion valuation².
– Island: A cybersecurity company that builds a secure web browser for the enterprise. It raised $115 million in Series B funding in December 2022 at a $1.3 billion valuation².
– TRM Labs: A cybersecurity company that monitors, detects, and investigates crypto fraud and financial crime. It raised $70 million in Series B funding in December 2022 at a $600 million valuation².
– Eclypsium: A cybersecurity company that defends the underlying hardware and firmware layer from cyberattacks. It raised $25 million in Series B funding in December 2022².
– Verkada: A cybersecurity company that combines plug-and-play security cameras with intelligent, cloud-based software. It raised $205 million in Series D funding in December 2022 at a $3.2 billion valuation².
– Isovalent: A cybersecurity company that solves networking, security, and observability for modern infrastructure. It raised $40 million in Series B funding in December 2022².
– Open Raven: A cybersecurity company that prevents leaks, breaches, and compliance incidents. It raised $20 million in Series B funding in December 2022².
– Vanta: A cybersecurity company that provides an automated security monitoring platform that helps companies get certified for various security standards. It raised $50 million in Series A funding in September 2022 at a $500 million valuation².
– Orca Security: A cybersecurity company that provides cloud security and compliance for public cloud platforms. It raised $210 million in Series C funding in August 2022 at a $1.2 billion valuation².