We are pleased to provide you with Momentum’s Cybersecurity Market Review (Q2 2017). In Q2 we experienced a noticeable decrease in M&A activity, and a massive uptick in financing activity.
Each quarter we provide you with an update on the dynamic Cybersecurity landscape. We highlight M&A activity, Venture Capital, Initial Public Offerings, public market valuations, and sector trends.
Exits: M&A & IPO Activity
After 2 consecutive quarters of increasing Cybersecurity M&A activity we saw a significant decline in 2Q17 with total announced M&A volume totaling $509M across 25 transactions
Notable M&A transactions during Q2 included Microsoft’s acquisition of Hexadite ($100M), EQT Partners’ acquisition of Open Systems ($120M) and Thales’ acquisition of Guavas ($215M)
ForeScout (2017) & Carbon Black (2016) confidentially filed for their IPO; OKTA successfully IPO’d in April 2017 pricing at $17 / share, currently up 34% since its IPO
1 Momentum ‘Watch List’ company exited this quarter: Hexadite. Congratulations to Eran Barak, Barak Klinghofer, Idan Levin and the rest of the team and their investors (TenEleven Ventures, YL Ventures, Hewlett Packard Ventures).
- Funding totaled $1.5B across 73 transactions, representing the 2nd largest funding quarter for Cybersecurity since 2010 and the largest since 1Q16 which totaled $1.7B
- Q2 saw a significant increase in the number of large rounds, with 9 companies raising more than $50M in funding including Sumo Logic ($75M), Alert Logic ($70M), Cybereason ($100M), Illumio ($125M), Netskope ($100M), Tanium ($100M), Crowdstrike ($100M), Signifyd ($56M) and Armor ($89M)
- Roughly 44% of deals were early stage (Seed to Series A), with a median amount raised of $5.1M; the remainder consisted of late stage (Series B+) with a median amount raised of $17.0M
- 10 Momentum ‘Watch List’ companies raised additional funding this quarter: Armor, Auth0, Cybereason, CyberGRX, Jask, RedLock, Spark Cognition, Uniken, Vera and Wandera. Congratulations.
>> Please feel free to download or view our full report here.
Source : Momentum Partners