$2B+ Deployed, Data Privacy, Cloud Security, and More: A Look Inside Our Q2 2017 Cybersecurity Market Review

Hot off the press! We just released our Cybersecurity Market Review for Q2 2017.

In Q2 we saw a noticeable decrease in M&A activity, a massive uptick in financing activity, 1 security IPO, and 11 of our Watch List companies either exiting or raising additional rounds of funding.

Please feel free to download or view our full report here.

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).

Financing Activity

  • 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.

Newsweek’s Annual Structure Security Conference

Meet Team Momentum in person this September as we’re advising Newsweek’s Annual Structure Security conference, which brings together over 500 cybersecurity executives, investors, advisors and over 40 speakers, including the FBI, IBM, Cisco, Century Link, UBER, Carbon Black, Verodin, and many others for cutting edge discussions and workshops about latest industry trends.

For more cyber-knowledge, see below for some of our previously published reviews.

Cybersecurity Market Reviews

Each month we provide an update on the dynamic Cybersecurity landscape. We highlight M&A activity, Venture Capital, Initial Public Offerings, public market valuations, and sector trends.

As always, if you have any questions or would like to discuss matters of a strategic or advisory nature, drop me a line.

Best // Dino

Momentum Partners is a boutique Cybersecurity focused Investment Bank based in Silicon Valley with operations globally. We employ a bespoke high-impact advisory model tailored to the unique needs of earlier stage Cybersecurity Founders & CEOs and the complexity of later stage & Public companies — Series A to Exit — where we are relentless in our pursuit for better outcomes for our clients. Our senior team has a prolific track record having closed over 200 transactions valued at over $200B over the past two decades.

© 2017 Momentum Partners, LLC. All rights reserved. Securities offered through Financial Telesis Inc. Member FINRA/SIPC.

Originally published at https://www.linkedin.com on July 14, 2017.